Artificial intelligence (AI) has come to play a significant role in security in the banking industry, bringing this sector in line with other industries across the board. AI is at work in banking services and apps. Many decisions that would have been made by humans are now made by AI using algorithms. This frees banking staff up for other tasks and makes the workflow more productive.
One of the key functions of AI in banking systems is to detect fraud, which it is able to do in moments. Another benefit is that US banks are predicted to save half a billion dollars through the use of AI in banking apps. AI is also more consumer-centric, providing a swift and seamless service to customers. Banks are experiencing additional benefits such as real-time decision-making.
The Role of AI In Banking
Banking has attained many advantages from the use of AI in numerous areas, for example:
- Chatbots
- Customer experience
- Risk management
- Loan and credit decisions
- Regulatory compliance
- Tracking market trends
- Predictive analytics
- Data collection and analysis
- Process automation
These are great zones for the special talents of AI and machine learning. However, we are most interested in its role in the arena of cybersecurity and fraud detection, such as artificial intelligence account verification.
AI In Cybersecurity and Fraud Detection
AI is able to learn how customers behave. This enables them to detect fraudulent activities. They do this by using algorithms, or supervised learning, and machine learning, where they continue to learn and refine their abilities without supervision. Fraudsters are constantly looking for gaps to exploit and AI assists banks to identify these new criminal strategies.
AI has the ability to detect changes in consumer patterns faster and more accurately than humans can and to flag these for analysts to follow up. It handles vast amounts of data at high speed and can accurately differentiate between fraudulent and genuine customers and verify payments. This prevents honest customers from being blocked.
AI and Account Verification
Identity crimes are rife. With multiple points of service delivery, banks cannot accurately identify criminals who open new accounts for money laundering, for example. This has led to financial institutions using AI to point out fraudulent applicants. One way this can be done is by getting a mobile user opening a new bank account to take a selfie during the process. This allows AI to use facial recognition which can be compared with the photo on the person’s driving license. The latter must also be photographed and uploaded while the application is underway. AI goes one step further. It can tell if the person is a living being at that moment to prevent fraudsters from sending an edited photograph instead of a selfie.
Thus, AI acts in the moment to open an account with minimal hassle for the customer and to ensure a good, fast experience. And if the applicant is a criminal opening an account to commit fraud, AI immediately determines this and denies the account. Banks that are not yet using artificial intelligence account verification can obtain assistance in setting up AI on their systems.
Criminals will continue to look for loopholes and AI will keep on putting a stop to their attempts.
