How technology has changed banking over the years

E-banking, online banking, net banking, etc. have completely changed the way banking is done today.

Internet banking refers to banking services provided by banks over the internet , Some of these services include paying of bills, funds transfer, viewing account statement, Banks also deliver their latest products and services over the Internet , Internet banking is performed through a computer system or similar devices that can connect to banking site via the internet.

Online banking

You can also use Internet banking on your mobile phones using a Wifi  or 3g connection , With the ease of availability of cyber cafes in the cities, and it has become quite popular, Online Banking is also environmentally friendly, The electronic transmissions require no paper, So, They reduce vehicle traffic and they are virtually pollution-free, and they also eliminate the need for the buildings and the office equipment.

Advantages of Internet banking

Banks that offer Internet banking are open for business transactions anywhere a client might be as long as there is an internet  connection, Apart from the periods of website maintenance, The services are available 24 hours a day and 365 days around the year.

If the internet connection is unavailable, The customer services are provided round the clock via the telephone, where the actual time account balances and the information are availed, This has tens banking processes hence increasing their efficiency and effectiveness.

ONLINE BANKING, allows automatic funding of accounts from long-established bank accounts via electronic funds transfers, and the client can monitor his spending via a virtual wallet through certain banks and the applications and enable the payments.

The speed of transaction is faster relative to use of ATM’s or the customary banking, Online banking allows easier updating and maintaining of direct accounts, The time for changing mailing address is greatly reduced, ordering of additional checks are availed and provision of actual time interest rates.
The accounts can be automatically funded from a traditional bank account via electronic transfer, Most direct banks offer unlimited transfers at no cost, including those destined for outside financial institutions, They will also accept the direct deposits and withdrawals that you authorize such as payroll deposits and automatic bill payment.

Online accounts are easy to set up and require no more information than a traditional bank account, Many offer options of inputting your data online or downloading the forms and mailing them in, If you run into a problem, you have the option of calling or emailing the bank directly, One advantage of using online checks is that the payee’s information is retained, which eliminates having to reenter the information on the subsequent checks to the same payee.
It is available all the time, You can perform your tasks from anywhere and at any time, even in the night when the bank is closed or on holidays, The only thing you need to have is an active internet connection, It is fast and efficient, The funds get transferred from one account to the other very fast, and you can also manage several accounts easily through INTERNET BANKING.

You can control your transactions and the account balance all the time, This facility also keeps your account safe, You can monitor your account at any time, you can know about any fraudulent activity or threat to your account before it can pose your account to severe damage.

Disadvantages of Internet banking

Complex encryption software is used to protect the account information, There are no perfect systems, So, The accounts are prone to hacking attacks, phishing , malware & illegal activities, Online banking is generally secure but it isn’t always secure, Identity theft is running rampant, and banks are by no means immune, and when your information is compromised, It can take months or even years to correct the damage, and it can cost you thousands of dollars.

Customer service can be below the quality that you’re used to, Some people take comfort in being able to talk to another human being face-to-face if they experience a problem, Although most major banks employ a dedicated customer service department specifically for online users, going through the dreaded telephone menu can still be quite irritating to many.

Not all Online transactions are immediate, Online banking is subject to the same business day parameters as traditional banking, So, printing out and keeping the receipts is still very important, even when banking online.

Identity theft is a significant concern but some online banks take this risk more seriously than others, Before opening an online account, thoroughly investigate the bank’s security policies and protections to ensure they meet your expectations, Security is the biggest concern surrounding  internet banking , with the consumers worrying that hackers will get into their account and spend their money.

Applications of Artificial intelligence (AI) in Banking and Finance.

Artificial intelligence  allows banks to become more efficient in the process of detecting fraud and money laundering, A automatically conducts & compress data that normally requires many hours of labor in just a matter of minutes, banks use machine learning & big data to prevent criminal activities and monitor potential threats to customers in commerce.

Artificial Intelligence in Banks

Artificial Intelligence AI can be used in the banking sector, It brings automation & simplifies the process,  AI will save the banking industry more than $1 trillion by 2030, The banking sector become one of the leading adopters of Artifial Intelligence , Most banks & financial institutions are implementing AI to add more efficiency to their back-office and lessen security risks.

The banking industry uses  artificial intelligence based solutions for many traditional banking problems, The use cases vary based on size, location and the type of financial institution, banks use  AI to increase client satisfaction, improve efficiency and maintain customer loyalty in many ways.

Many  banks use many applications of  artificial intelligence  to detect fraudulent activities,  AI Software offers a very large sample of data that includes fraudulent & non-fraudulent purchases, it is trained to determine whether a transaction is valid based on data, the software becomes incredibly adept at spotting fraudulent transactions based on what it has learned previously.

Applications of AI for Banking Sector

Process Automation

Process automation with RPA is the main drivers of automation in financial institutions, AI systme can perform more complex automation, AI system can review documents and extract data in much less time than it would take a human, artificial intelligence will help customers manage their simple banking needs more efficiently & consistently, It allows financial institutions to create more personalized consumer products.

Artificial Intelligence recognizes and extracts important information from loan applications, lease agreements, W-4 forms & receipts in order to save employees countless hours of work, It can drastically reduce the time spent reading or recording client information, time can be reallocated in performing revenue-generating tasks.

Chatbots

A chatbot is a service powered by algorithms, It interacts with the customer in a human-like manner, It is the AI-enabled tool that offers financial guidance for the bank’s clients through voice & text messages, The service is accessible 24/7, it can perform day-to-day transactions, So clients can access services at any time without costing more money hiring customer service.

A chatbot can act as an answering machine and serve the customers continuously throughout the day, It can answer simple questions of the users of customized banking app and it can redirect them to the bank’s website if necessary, chatbots offer direct & basic operations such as opening or closing the account, transfer of funds, etc.

The chatbot can offer useful links for finishing the process, It can present instant connectivity and reduce the workload of customer care executives significantly, Though customer care executives are serving the customers well, they have limitations of time and the number of persons they can attend in a day.

Banking app

A banking app integrated with AI-related features to show services, it offers, and insights in line with the user’s behavior, the app handles the advice and communication part by analyzing the user’s data, Banks offer online wealth management services and other services by integrating AI advancements into the app,  AI banking apps can work wonders, It is easy to assist the users in financial planning with AI strategies.

Banks understand the importance of accelerating & increasing connectivity with customers, banking apps  can make customer interactions easier & attract new clients, This sort of AI-based tech shows how banks are looking for new and creative ways to personalize the user experience and better understand customer behavior.

AI technology works on the principle of data collection & analysis, Any AI System can work well with better data sets, A tailored mobile banking app enriched with AI-based features can collect all the relevant and useful data of the users to improvise the learning process and enhance the overall user experience, After accumulating and analyzing the data, the experience can be made more personalized.

Many transactions are done online irrespective of time & place worldwide, automated processes and other applications are attributed to the integration of AI in the banking system & mobile banking apps , The main role of AI in mobile banking domain  is to improve customer service, over 32% of financial institutions use AI by the means of voice recognition & predictive analysis, Banks use AI Technology for enhancing the customer experience by giving it a personalized touch.

Automated AI-powered customer service representative can serve the purpose with ease, After gathering the data from the user’s mobile devices, the AI-based mobile banking app processes the data through  machine learning to provide the relevant information or redirecting the users to the source of information.

Artificial Intelligence can manage wealth management & portfolio management effectively & efficiently, It brings ‘banking at your fingertips’ for the users who hate to visit the banks, mobile banking helps manage basic banking services, so, Customers can get automated & safe transactions, They get notifications instantly for any suspicious transaction as per their usual patterns.

AI offers a card management system, It not only automates the credit and debit card management system but makes it safer, It helps the customer get rid of a long authentication process in the case of losing the Card, The AI System  saves time and efforts of the customers and improves the mobile banking devices.