In the world where compliance policies and regulations are subject to frequent change, banks need to modernize their processes and workflows by conforming to these regulations continually. Additionally, with fraud and cybersecurity hacking endeavors becoming more complex, many regulatory authorities in the banking industry are placing the responsibility on banks to alleviate these risks efficiently. In order to overcome all such obstacles, bankers recognize the potential of artificial intelligence.
Chatbots and customer-facing AI projects have obtained a lot of hype when it comes to banks prioritizing risk mitigation. Employing AI to prevent or manage risk essentially makes sense, especially when the bankers are unable to detect money laundering and expensive fraud strategically. Sound risk detection systems place banking clients at ease and enhance the bank’s reputation. For example, consumers are more likely to use banks with a track record of thwarting cyber attacks. Also, banks would acknowledge significant time & cost savings by using AI to automate absolute compliance, cybersecurity activities, and fraud detection.
Banks cannot take compliance, fraud detection, and cybersecurity lightly as they would have to end up paying for it; consequences that banks have to face as a result of failing to detect money laundering could be as severe as hurting the reputation built with hard efforts. In addition, losses posed by hackers are eyewatering. Given the banks’ focus on automation, compliance-handling teams are possibly most likely to drive the department towards the integration of AI. Believing that AI is sure to aid as expected, modern bankers are ensuring that the AI applications at the departmental and organizational levels are continual and yield ROI along with sustaining enthusiasm for experimenting with the technology.