Fintech
Too open to artificial intelligence? GFT advises caution against bank fraud
Banking customers in the United States (US) are opening up to the idea of artificial intelligence (AI) in the financial sector – but only under certain conditions.
According to GFT’s Banking Disruption Index, 44% of US consumers are currently satisfied with the use of AI in their personal banking experience. However, this will only happen as long as banks continue to allow them visibility into how the technology is used.
AI can handle it advantages in daily banking activity, including helping protect customers from cybersecurity threats. Currently, as fintechs and neobanks continue to release a number of AI-based innovations for consumers, banks have arguably been slower to adopt the technology.
GFT suggests that banks still have the power to strategically deploy AI if they can identify the highest value use cases.
Interest in the practical applications of artificial intelligence is increasing
At the beginning of 2024 it was found that the majority of banking customers were still concerned about the use of artificial intelligence in the sector. In particular, this is due to the increasing use of artificial intelligence present in fraudulent activities.
However, there is an opportunity for financial institutions to leverage AI as a responsible tool to significantly reduce financial crime.
“Whether they use AI to identify fraud patterns, analyze networks or streamline processes, banks can take the lead in what we believe will be a key trend in 2024: explainability, i.e. the ability to demonstrate to their customers how and why artificial intelligence models have taken hold. decisions that affect them,” Vatsa Narasimha, CEO of ComplyAdvantage previously explained to FinTech Magazine.
The GFT report found that customers are not yet ready for AI to expand too far beyond just everyday banking capabilities. It suggests that traditional banks should focus on improving existing AI solutions based on consumer priorities, in order to maintain their trust and satisfaction.
When asked which features they were most willing to use in their daily banking operations, the majority of Americans surveyed in the report chose real-time fraud monitoring (35%). When used in fraud monitoring, AI offers banks and customers the opportunity to better protect their money, accounts and personal information, which is especially vital given the increase in fraudulent transactions that will impact the industry in the 2023.
Another priority for customers was citing saving money, with 90% of US citizens looking for new ways to save. In the context of the current cost of living crisis, GFT found that nearly a third of respondents are eager for AI to help them plan and reduce daily costs.
Likewise, 28% of respondents say they would like checking balances, transferring funds and receiving account updates to be tasks they would like automated.
Towards a more AI-driven mindset
Banks are finally taking AI into greater consideration maintain customer trustaccording to GFT Americas CEO Marco Santos.
“Retaining consumer business is no longer just a question of digital transformation for banks, but also of implementing artificial intelligence,” he comments. “While it may seem like digital native competitors have an edge in the AI race, consumers’ banking wish list of fraud detection, banking advice and other everyday tasks are all capabilities that traditional banks are more than capable of. able to improve with artificial intelligence.”
He adds: “Delivering these optimized experiences to consumers, combined with the long-established security standards of legacy institutions, allows traditional banks to not only maintain market share but also establish a strong initial foundation with consumers. This will allow them to grow safely and move forward.”
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