role of ai in banking (2).pptx

1. ROLE OF AI IN BANKING NELLORE CHANDANA LEKKALA VASAVI REDDY PATIL SAGAR GOUTHAMI KUSHALAPPA

2. Artificial intelligence The simulation of human intelligence processes by machines. Intelligence demonstrated by computers. AI refers to computational tools that are able to substitute for human intelligence in the performance of certain tasks

3. History of AI in Banking The first bank in the world to adopt Al (Artificial Intelligence) can be traced back to the 1980s. The Bank of Scotland implemented an Al-based system called "Fraud Detection System" in 1985 to detect potential fraudulent transactions. This system utilized a neural network to analyze patterns and identify suspicious activities, marking an early application of Al technology in the banking sector

4. Scope of AI The main aim of AI in the banking industry is to assist the customers by keeping their preferences a priority. Additionally, AI plays an essential role in assuring that customers are happy with the services offered by the bank. It also plays a crucial role in risk management by preventing fraud and fighting money laundering in real-time. 1: Process optimization-In claims processing-In mortgage processing-In customer service-In operations- 2: Credit risk management 3: Fraud and money laundering-In fraud-In money laundering 4: Trading and wealth management-Robo advisors-Trade channel optimization- Stockmarkets 5: Marketing 6: Security and compliance-Security-Compliance

5. APPLICATIONS OF AI IN BANKING CYBERSECURITY AND FRAUD DETECTION REGULATORY COMPLIANCE CHATBOTS AND CUSTOMER SERVICE PREDICTIVE ANALYTICS LOAN AND CREDIT DECISIONS DATA COLLECTION AND ANALYSIS

6. Real-World Examples of AI In Banking

7. Initialization Credit scoring Clerical automation General Digitization Continuation Offer+Pricing Optimization Introducing Upcoming Advanced Recommenders Full ABA Decisioning Automated Portfolio Management

8. CHALLENGES FACED BY BANK USING AI 1. Data quality and availability 2.Data privacy and security 3.Regulatory compliance 4.Explainatory and transparency 5.Talent and expertise 6.Ethical consideration 7.Change management and cultural shift

9. Why must banking sector embrace AI-FIRST 1.Enhanced efficiency 2.Improved customer experience 3.Fraud detection and prevention 4.Risk assessment and credit scoring 5.Predict analysis and investment strategies

10. References https://analyzingalpha.com/history-of-ai-in-finance https://www.techtarget.com/searchenterpriseai/feature/AI-in-banking-industry-brings-operational-improvements https://www.hcltech.com/blogs/how-artificial-intelligence-transforming-banking-sector#:~:text=Even%20the%20traditional%20banks%20have,money%20laundering%20in%20real%2Dtime . https://bfsi.eletsonline.com/rise-of-artificial-intelligence-in-banking/

11. AI is not the future of banking It is the present!