AI in BFSI Industry : 11+ Use Cases [2022]

Daten & Wissen / Nov. 14, 2021
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Automation requirements have been spotted in the BFSI sector and the demand for AI in Banking and Finance is skyrocketing. This demand only seems to keep increasing as there is a requisite for new and efficient methods to be deployed so that strenuous tasks and unnecessary paperwork are left behind. With the help of Data Science, Machine Learning, Natural Language Processing, Deep Learning, and Computer Vision humans have successfully automated laborious tasks.

Use Case of AI in BFSI Industry

Undermentioned are some examples of AI Use Cases in Banking and Finance that would help in process automation. Nevertheless, these are flexible and can be modified further.

Automation of KYC processes - This involves reviewing the completeness and accuracy of uploaded documents, identifying if the uploaded document is clear, unclear, photocopied, or not the one in question. Aadhar card, pan card, passport, etc. can be analyzed to check if the text and pictures are of standard quality. Contents from different firms can be extracted and written in a specific format automatically. All this is done using Optical Character Recognition, Natural Language Processing, and Computer Vision tools. Video KYC is also carried out in some cases.

Conversion of handwritten documents to digital format - Using OCR, any hardcopies, including those written by hand can be converted to digital softcopies to store online. The hard copies are converted to editable documents. This can be done with a high level of accuracy. If the documents are lengthy and need to be summarized, the next use case might catch your interest.

Automated Summary Generator - Keywords are fed into the ML algorithm and the solution is trained to understand which parts of the content are important. Based on these keywords, the words around them are analyzed. This is how any huge document of thousands of words can be brought down to a hundred, into a summary with the help of our automated summary generator.

Non-Compliant Issue detection - The task of reading thousands of documents to check for issues could be automated. Non-compliant issues could be found in regulatory compliances. The solution will accurately find all the issues based on the constraints we provide and notify accordingly.

Marketing Automation - Using Automated Targeted Marketing, identify the right target audience to generate more leads and eliminate unnecessary spending. Using Sentiment Analysis, customer reviews and thoughts can be scraped from the internet to understand their experience and make the necessary changes. AI can also be used to interact with existing clients who are not responding and keep them satisfied.

Customer Churn prediction - Analyze the loyalty of your clients and the probability of them leaving you to know whether modifications need to be made. For this, the past data of clients would be required, the more the data, the better the prediction. Using this data, the prediction model can be built.

Financial Forecasting with default prediction - It is easy to predict your profit in a best-case scenario. One of the reasons why your financial forecasting would not be accurate is that some of the clients are not able to pay back the loan. By predicting whether your client will default. With the help of AI, you will be able to calculate your financial forecasting more accurately.

Fraud Detection using Anomaly Detection - Fraud detection is very important in the loan and insurance sector to know whether the case is genuine or not. Based on historical fraud patterns, the solution can recognize them automatically. The solution can look for links between credit cards and loan applications, along with monitoring newly opened accounts to prevent financial damage. This is how AI can help in insurance and loan processing, and make sure you have the right clients.

Competitor Analysis - With the help of this solution, the internet is scraped based on hashtags and buzzwords to find out news about your competitors, what your competitor is saying, and what’s new. Even general information about the BFSI sector, or what’s new with a specific sector can be collected and given to you and keep you updated on the happenings in your sector.

Recommendation systems - Help your clients pick the right loan or insurance policy. This is done based on user data, including their background, who they are, and what they need it for. We can identify online inputs (for example, user visits to the website), offline inputs (user data kept in the bank’s database), or a mixture of both kinds of data to provide the best suggestions. A recommendation system can even be integrated into your existing Chatbot.

Chat Bot - Every active website needs a ChatBot. In order to answer FAQs, unexpected questions, customer queries, and to make your website a hub of helpful information. ChatBots can be multilingual, i.e. they interact in all desired languages, and can be integrated with WhatsApp or your Web Apps and Sites. Another point to be noted is that our Chatbots are as kind and polite as your human customer care, if not much more.

Insurance Pricing - AI can assess a customer's risk profile based on claims data, biometric data, health history, family history, and identify optimal prices for the insurance plans. Analyzing past records and determining how prone to risk the customer is, the AI solution will help offer the appropriate price to your clients.

Automated cost repair estimation - This solution will analyze accident images to estimate repair costs in real-time. This will help in Motor Insurance. The solution will understand the impact of mishaps and the authenticity of claims to provide the average cost that would need to be covered for the incident.

Video Analytics integrated with CCTV - This solution helps with motion tracking and detection of equipment and employees to eliminate the need for full-time supervision. Identifies unsafe measures, detects unauthorized access, and notifies the concerned person if anything is beyond normal. A solution can also be provided.

Face Recognition - AI can be used for surveillance and security. Any alterations or deviations from the regular will strike up an alert. Artificial Intelligence in the Banking and Finance sector (BFSI) is booming and growing, and will soon be amalgamated with insurance and loan processing, as well as in Capital Markets. It will not take a long time for all BFSI companies to make redundant some monotonous tasks automated using AI & ML algorithms.

Read Also:

How AI is Transforming Healthcare Industry?

AI in the eCommerce Industry?

Let's Wrap It Up

The Banking industry is completely being transformed using Artificial Intelligence technology & due to this, the overall customer satisfaction rate is increasing. Every banking company should integrate the power of AI into its core system.

We are experts in creating customized AI solutions with better accuracy & efficiency. It is important to choose the right AI solution which may transform your business to the next level.

FAQ

Q: In which industries AI is used?

A: AI has been used in many industries such as banking, healthcare, education, FMCG, Manufacturing, eCommerce, Fragrance, etc. These industries are leveraging maximum growth with the help of AI.

Q: How is AI affecting the banking industry?

A: Digital payments, biometric fraud detection systems, Ai chatbots, reduction in operational costs, loan & credit decisions, etc. are the best examples of how AI is affecting the banking industry.

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Daten & wissen

Daten & Wissen is the team of expert AI engineers to help your business to embark on a transformational journey with the adoption of this futuristic technology.

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