How AI is changing banking
The impact of AI on the banking industry is profound. It has the potential to significantly change the way banks operate, from investment advice to ESG considerations and combating financial crime.
The key idea is simple: by understanding customers better, banks can offer more tailored recommendations. This concept, long practiced in the traditional banking world, is now crucial in the digital era, especially in the realm of investment advising.
For instance, algorithms like “Next best offer” monitor Wealth Management Clients’ portfolios for potential risks, such as downgraded bonds or overexposure to certain regions, prompting advisors to take action.
In the fight against financial crime, AI models like “Black Forest” analyze transactions to detect suspicious activities based on various criteria.
While human oversight is still necessary, AI’s automated suggestions can greatly streamline decision-making processes, ultimately benefiting customers and the environment by reducing carbon footprints.
