AI’s Potential in Banking Still Untapped
Artificial intelligence projects in the banking space, which are largely focused on chatbot functionalities at present, have not shown their transformative potential as they have the capability to tackle larger issues.
The past year has seen many banks embark on artificial intelligence (AI) projects, but while they have the potential to improve customer experience and satisfaction, the technology’s true potential is still untapped, Nizam Arshad, chief technology officer of TM ONE, the business solutions arm of Telekom Malaysia, said in an interview with the Fintech Malaysia news portal on banking trends that have emerged in the past year.
Arshad said that in the coming year, banks are likely to move beyond chatbots to deploy AI to bolster fraud prevention, as the technology can be used to detect irregular behavioural patterns, from which customers can be alerted.
Credit risk was another area Arshad said would be given a boost by AI. The technology can be used to analyse of customer data, such as payment patterns, outstanding balances and credit agency data, along with information from alternative sources such as social media, to better assess customers’ credit worthiness, he said.
