The Banking Industry

s natural language processing technology evolves, consumers find it increasingly difficult to distinguish between a voice bot and a human customer service representative. This stems from improved abilities on the part of voice and chatbots to resolve customer issues without human intervention.

The benefits to banks of customer service automation are obvious: AI could lead to significant cost reductions. A recent study by Autonomous predicted that AI could lead to 1.2 million jobs being cut in the banking and lending industry, resulting in up to $450 billion in industrysavings by 2030.

Despite the potential rewards customer service automation promises, banks and other businesses need to proceed with caution in relying too heavily on voice and chatbots. The popularity of GetHuman illustrates this: It’s a website that connects consumers with human CSRs to resolve their issue. In fact, voice and chatbots often work best when augmenting rather than replacing humans. At a minimum, the option to speak to a human, if necessary, should be readily available.

Want an example of how banks are creatively employing AI to serve customers? The Swiss bank UBS, ranked number 35 globally for its volume of assets, according to Accuity’s August 2018 global bank rankings — has partnered with Amazon to incorporate its “Ask UBS” service into Alexa-powered Echo speaker devices.

Ask UBS, which is aimed at UBS’s European wealth management clients, enables users to receive wide-ranging advice and analysis on global financial markets just by “asking” Alexa. “Ask UBS” also acts as a teaching resource, offering definitions and examples of acronyms and jargon related to the financial industry.

Banks have access to a wealth of customer data, including detailed demographics, website analytics and records of online and offline transactions. By utilizing machine learning to integrate and analyze information from multiple, discrete databases to form a 360-degree customer view, banks are better positioned to personalize products, services and interactions based on the behavior of individual clients.

According to James Eardley, global director of industry marketing for enterprise software giant SAP, “The next step within the digital service model is for banks to price for the individual, and to negotiate that price in real time, taking personalization to the ultimate level.”

While personalized pricing of this kind may only become prevalent in the future, banks are already utilizing AI-processed behavioral data to advise individual clients on appropriate credit and savings products, based on their goals and habits. Santander, the world’s 14th largest bank, measured by its current assets, even hosted a competition, with a prize of $60,000, on the machine learning crowdsourcing site Kaggle, encouraging data scientists to write code that better “pairs products with people.”

The fintech revolution is still in its infancy, but alongside AI, it has already had a substantial impact on the way traditional banks do business. This presents digital entrepreneurs and investors with myriad opportunities for improvement.

Essay On Internet Banking

With the growth of internet and wireless communication technologies, telecommunications etc. in recent years, the structure and nature of banking and financial services have gone for a sea change. Internet banking or e-banking is the latest in this series of technological wonders in the recent past which involves use of internet for delivery of banking products and services.

Even the Morgan Stanley Dean Witter Internet Research emphasised that web is more important for retail financial services than that for many other industries. Internet banking or e-banking is changing the banking and its structure and is having major effects on banking relationships.

Banking activity is now no longer confined to the branches where a customer has to approach the branch in person, for withdrawing cash or deposit a cheque or request for a statement of Accounts.

In accessing a true internet banking, any inquiry or transaction is processed online without any reference to the branch (anywhere banking) at any time. Thus providing Internet banking is gradually becoming a “need to have” than a “nice to have” service.

The net banking is, therefore, more of a norm rather than an exception in many developed countries because it is the cheapest way of providing banking services. Under this system, online banking is possible where every bank customer is provided with a personal identification number (PIN) for making online transactions with the bank through internet connections.

Even the Morgan Stanley Dean Witter Internet Research emphasised that web is more important for retail financial services than that for many other industries. Internet banking or e-banking is changing the banking and its structure and is having major effects on banking relationships.

Banking activity is now no longer confined to the branches where a customer has to approach the branch in person, for withdrawing cash or deposit a cheque or request for a statement of Accounts.

In accessing a true internet banking, any inquiry or transaction is processed online without any reference to the branch (anywhere banking) at any time. Thus providing Internet banking is gradually becoming a “need to have” than a “nice to have” service.

The net banking is, therefore, more of a norm rather than an exception in many developed countries because it is the cheapest way of providing banking services. Under this system, online banking is possible where every bank customer is provided with a personal identification number (PIN) for making online transactions with the bank through internet connections.

In order to support internet banking facilities another new concept of banking i.e., core or anywhere banking is introduced. Initially introduced by the foreign banks, the same concept in new increasingly adopted by public sector banks and also the private sector banks.

Under this concept of banking, bank customers who have an account with any select branch can easily operate his account from different designated branches on the bank spread throughout the country.

Under this system, a customer can avail cash withdrawal, cash deposit, transfer of funds, inter-city and intra-city transactions, collection of draft and cheques etc. facilities from any of such designated branches conveniently irrespective of its locations.

Core banking concept has improved the standard of the banking services with the help of modern technology. In present times, most of the public sector banks have already adopted this concept and started extending these facilities to its customers gradually by including more and more of its important branches under this category.

Security Precautions:

In order to make their bank account safe, one should follow certain security precautions. Customer should never share personal information like PIN number, passwords etc. with anyone, including employees of the bank. It is important that documents that contain confidential information are safeguarded. PIN or password should be changed immediately and memorized before destroying the mailers.

Customers are also advised not to provide sensitive account-related information over unsecured e-mails or over the phone. He must take simple precautions like changing the ATM, PIN and online login and transaction passwords on a regular basis. It is also important to ensure that the logged in session is properly signed out.

Online Banking Safe

When you bank online, you trust that your account is safe from hackers. Even so, online accounts can seem to consumers like easy targets: Instead of robbing a bank, a criminal could simply whisk away your money with a few keystrokes.

To combat these concerns — and protect your cash — banks and credit unions have a number of policies to keep online customer accounts secure. Standard measures include using firewalls, anti-virus protection on bank computers, fraud monitoring and website encryption, which scrambles data so only the intended recipient can read it. If you bank online, chances are your financial institution employs these security measures.

Large-scale data breaches get the headlines, but criminals also work on a smaller scale by attacking consumers directly. For example, fraudsters often use so-called phishing scams, in which they send out emails pretending to represent a financial institution in the hopes of hooking an unsuspecting consumer.

The email might suggest there’s a problem with your account and ask for your bank password or Social Security number. Or it might say you won $100 million, but your account information is needed to wire the funds. If you reply, the criminal could use the information to illegally make purchases or withdraw money from your account. Don’t respond to emails that are too good — or bad — to be true.

Skip public Wi-Fi for private banking. With a public network, you can’t be totally sure who sees what you send online, unless each page you visit is encrypted. The security of your private home network is ideal. If you have to log in while away from home, consider using your cellular data plan instead of Wi-Fi, or a virtual private network, known as a VPN. However you choose to log in, check for web page encryption by making sure the address on the browser starts with “https.” The “s” signals that the page is secure.

Keep anti-virus software current. Make sure yours is up to date on your home computers and mobile devices.

Choose an institution that uses industry-standard security. You probably already want a bank or credit union that offers accounts with low fees and high interest rates. Add “top notch security” to your checklist. Then, make sure your online accounts are backed by robust technology.

An example is multifactor authentication. Here’s how it works: When logging in, instead of just asking for a username and password, the financial institution requires you to provide another piece of information, or factor, to verify yourself. It could be a unique passcode sent to your smartphone as a text message, or even your own fingerprint. The point is it’s another layer, one not so easy to steal.

Many of the larger online banks — and traditional institutions with online accounts — adhere to these standards, so it should be easy to find a bank or credit union that fits the bill.

Change passwords regularly. Use combinations that are difficult to guess, such as a mix of uppercase and lowercase letters, numbers and symbols. The more complex the password, the harder it will be to crack and the more likely it will provide protection against hackers.

Ask for text alerts. Many institutions let customers choose to receive alerts via text or email whenever large transactions are made on their accounts, or if the balance drops to a certain amount. That way, customers can reach out to the bank immediately if they see a purchase or transfer they didn’t make, and protect their account against further fraudulent activity. In addition, customers can dispute unauthorized charges for 60 days after the date of their bank statement.