AI is transforming digital banking

3 min read

Digital banking is undergoing rapid change. Banks and Credit Unions must keep up with the fast developments of technology so they can improve their customers' digital experience.

New technologies can provide personalized and humanized services that go far beyond what was previously offered by banking branches. It gives digital customers the same experience as in-person in-branch interaction without leaving the comfort of their homes.

How AI, OCR, Chatbots and more, can help transform digital banking

Banks and Credit Unions can benefit greatly by investing in Artificial intelligence, automation and optical character recognition. These technologies will improve both their ability to attract new clients as well as their ability to satisfy already existing ones.

Digital users are no longer prepared to put up with the inconvenience of paper-based apps and tedious procedures. They anticipate being able to complete onboarding with ease in a digital setting and submit all the necessary paperwork for AML and other ID checks during a smooth, end-to-end journey. OCR and artificial intelligence can speed up the process and make it a seamless experience.

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1. Artificial Intelligence

Artificial intelligence (AI) has the ability to automate every aspect of digital banking. It can carry out a number of onboarding duties that previously needed human employees, like data entry or creating user profiles.

Artificial intelligence (AI) can also gather data and insights to constantly improve journeys by identifying bottlenecks and points of friction. This type of technology can save time and money while allowing staff from Banks and Credit Unions to focus on more demanding tasks.

 2. Optical Character Recognition and Natural Language Processing

In this digital age, computers can now easily comprehend human writing or voice thanks to a process called natural language processing (NLP). This can be used to scan papers or run virtual assistants that can comprehend clients' words in their native language.

OCR (optical character recognition) is another tool that can automatically read uploaded identity papers like passports and diver's licenses, it can even scan data from handwritten application forms and extract that information to digitalize it. This is one of the numerous tools that complete the job that was previously done by a person and quicken the onboarding journey for clients.

3. Chatbots

In this new digital era, Banks and Credit Unions are expected to offer 24/7 customer service available everywhere, and on every device. This is where chatbots come into the picture. Chatbots provide services around-the-clock, without being restricted by office hours, and can be reached from whatever channel available to the client at the moment.

Chatbots also enable financial institutions to regularly review important data like the time it takes to complete the onboarding process, the abandonment rate, and the response time to a question. Customers' frustration with chatbots can also be revealed by natural language processing. These Chatbot metrics make sure they are operating at their full potential and providing the best customer service.

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