As time goes by, artificial intelligence becomes more and more popular in the banking sphere. What are the advantages and disadvantages of AI? How are financial sectors using AI? What impact does AI have on the banking industry? And what’s the most important – can we trust AI with our finances? Why? Why not?
In this article, we are going to provide you with useful information, which will help you decide, whether to trust AI with our money or not.
Artificial Intelligence in Banking
Nowadays, banks are actively using AI in the banking system. First of all, that’s because AI allowed banks to transform many things in a positive way. AI made it easy to do some processes in banks, made providing services much faster, money transfers safely, and so on.
What’s more, for banks adopting AI was beneficial, because AI combined almost everything which could do the people working in financial services.
Besides, not only traditional banks but the internet banks actively adopted AI. As coronavirus spreading caused a bunch of problems and made it hard to make transactions and finance-related processes via traditional banks, internet banking became more popular. It allows people to conduct all the things that are linked to traditional banks in a virtual way and in addition, internet banking became not only the alternative to traditional banks but most importantly, it gave people a chance to be involved in trading.
As coronavirus outbreaks left a lot of people unemployed and caused diminishing their income, people tend to invest their money in stocks, shares, commodities, currencies, and so on to raise their returns. But investing in assets is also linked to the risk of losing money and seeing a loss. Internet banks want to attract as many people as possible, so their main interest lies in satisfying their customers. For this purpose, they decided to adopt AI.
However, as AI is an automated system it may have some errors and/or not be satisfactory for many customers. Internet banks for improvement purposes decided to add the function, which allows customers to rate the AI’s service quality. Since many banks have integrated trading platforms to keep clients’ money-spinning in their system, the AI running in these programs is a lot like robots for FX trading that help traders automate their transactions. This seems to be the trend of modern banks and who knows, maybe all banks will offer foreign exchange trading in the future.
Benefits you can get from AI
One of the significant advantages you can get from AI is that it makes processes less time-stretched, especially when it’s about customer support. There are moments when we need to get answers to the questions we have as quickly as possible. With the programmed system, AI processes became much faster and allowed us to save our time.
What’s more, it’s quite significant for banks to analyze data. As the role of competition gets gradually higher, the focal point of the analysis is to develop services, satisfy customers and attract them.
The risk assessment is a process, which needs human resources quite a lot. And even using mentioned resources, there are risks to making mistakes. In the banking sector, every detail is crucial, so it’s needed to make everything perfect. Humans, in most cases, aren’t the ones who can make things perfectly, while there are robots, who can conduct complex and critical processes with high confidence and more accuracy. In addition, complexity and multitasking which are usually typical of AI protect us from fraud. It can detect the scam and cyberattacks, that is one of the viral crimes in the digital world. So, it makes our personal data safe and secures us from giving our sensitive information to criminals.
There are many cases when customers have questions about transactions. There can be unexpected transactions, which, in some cases, happens for the errors the bank programs have. So, there is AI, which can easily find the problem in the program and make processes faster.
To conclude the advantages of AI is that it can protect us from cyber attacking and losing our finances, also, it can make things faster and help us to save our time, and also, it can analyze a big amount of data, which is the guarantee of developed services.
Disadvantages of AI
Nothing can be perfect, even AI, which means that there can be some threats of failures of AI programming, so the time and procedures which are necessary for making things correct need quite a lot of time.
What’s more, the thing that AI is dehumanized and it replaces the adaptive behavior of humans, it may have some irrational behavior, including it can give us answers that are irrelevant and aren’t very helpful for us. In addition, there could be many things in which we are interested and have questions about them, but AI cannot give us relevant information.
So, disadvantages show us that the main problem of AI is the processes that can lead us to time-stretching.
Can we trust AI with our finances?
The information given above, allows us to make conclusions about the trustworthiness of AI. As we saw, there are some things that make conducting some bank processes difficult, but as we know nothing is perfect, either AI. But the problems we discussed actually refer to the time-expanding processes and don’t show us any threat, which will lead us to not trusting our finances with AI. Instead, AI’s benefits showed us that we should trust our finances with AI, which defend us from cyber attacks, losing our money, and in addition, mostly, give us a chance to save our time.