The Benefits of Implementing AI-Powered Digital Identification for Banking Customer Service
Nowadays, AI is playing its part in almost every field of life. Therefore, you will see massive use of AI in the banking sector as well. Banks are under pressure to use these technologies because they’ll be out of the competition if they don’t use them. In banks, AI can help in many ways, such as automating tasks, improving customer service, detecting fraud, visual image detection, and reducing costs. In this blog post, we’ll focus on how banking sectors can use AI-powered digital identification to gain the upper hand over competitors.
Is AI Shaping the Banking Industry?
In the last decade or so, the banking industry has seen a massive digital transformation. Due to security concerns, financial institutions have stiff structures. But due to immense global pressure and to stay in the competition, they have made lots of changes in no time. Contactless payments and online verifications are a few examples of these changes.
The main changes and developments in banking sectors are because of AI. Banks have enjoyed various benefits of AI, such as forecasting, decision-making, improving customer experiences, and fraud detection. So, without any doubt, AI has reshaped the banking industry, and it will continue to impress when banks will combine AI with other innovative technologies.
5 Benefits of Implementing AI in Digital Identification for Banking Customer Service
AI has many applications in banking. Here we’ll discuss the major benefits of AI-powered digital identification for customer service.
- Fraud Detection
Machine learning algorithms are trained with historical data and can take control of human duties to identify unusual patterns and speed up the review process. No doubt, manual verification in the banking sector is critical, but combining it with AI technology will not only reduce the chances of human errors but it will also improve effectiveness and cut costs.
You need to invest much in implementing ML and AI models for fraud detection because there are various smart tools like IDefy that can do these tasks for you.
- Facial Recognition
This technology isn’t used in all countries, but it’s used in China for frictionless payment. For example, when you visit a store to buy something, the device will scan your face and compare it with the data provided in the bank. Such transactions don’t require a credit card or phone; they will only take a few seconds. So, using this feature, banks can provide excellent customer service experience.
- Improved Customer Experience
It’s perhaps the most significant benefit of AI in banking. When customers get personalized service, they’ll never try any other bank. When banks use advanced techniques to verify customers’ identities, it will only take a few seconds. Customers will not have to wait for hours to get themselves verified.
- Reduced Risks and Operational Costs
No doubt, we enjoy human interactions, but at the same time, there is always a risk of errors. A slight mistake can affect the overall reputation of the institution. With AI, tasks are automated and human involvement is reduced. As a result, it reduces operational costs and risks. More importantly, the team can focus on other crucial tasks.
- Improved Customer Engagement
AI-powered chatbots are improving customer service with their instant support and quick solutions. As a result, they boost customers’ loyalty and trust in the banking sector. So, banks can use these solutions to respond to general day-to-day queries.
How to Gain Competitive Edge with IDefy?
Now you understand the importance and benefits of using AI in the banking sector. If you are looking for AI-powered digital identification solutions, IDefy is the best option. It can help banks in ID Document Processing, Liveness Detection, Face Identity Verification, and ID verification.
So, banks and other financial institutions can use these tools to win customers’ trust and improve customer service. Moreover, with such tools, you can enjoy the benefits mentioned above.