The application of artificial intelligence in the financial sector is an example of how technology has revolutionized the way business is conducted. Increasingly, institutions are seeking technological and diversified service channels, using data to personalize and humanize customer support.
According to the latest Febraban Banking Technology survey, almost 8 out of every 10 banking transactions carried out in Brazil are made through digital channels, such as mobile banking and internet banking (77%). Cell phones alone account for 66% of all transactions in the country. Added to this scenario is the potential for using generative AI, as pointed out in the new CEO Study 2023 by the IBM Institute for Business Value (IBV), which shows that half of global leaders are integrating generative AI into products and services, and 75% believe that competitive advantage will depend on who is most advanced with this technology.
To connect this personalized, technological and humanized service, Topaz, one of our venture companies specializing in financial solutions and operational and transactional risk mitigation on digital channels, uses the concept of Empathetic Banking on its Topaz Open platform. This is new in Latin America and involves cognitive service that takes emotional readings of customers. This allows the bank to suggest more customized services, including through live chat in the banking applications themselves.
Topaz Open, which uses IBM Watson Virtual Assistant, IBM Watson Discovery, IBM watsonx.data and IBM watsonx.ai, can also become a proactive platform capable of notifying customers of their balances and statements, as well as making investment recommendations and consultations based on previous transactions. It can even answer questions such as “How much did I spend on transportation apps this month?”
The solution has the resources and structure to ensure that user and institutional data is secure, implementing a robust identification and verification process without compromising the customer experience, with two-factor authentication and fraud detection.
According to Flavio Gaspar, Topaz’s CPO, AI can be constantly trained with behavioral and profile data, banking products and interaction history for opening accounts, as well as managing alerts and recommendations. “This technology represents a new paradigm in the relationship between banks and customers, as it humanizes digital service, supports the financial education of account holders and simplifies the relationship with money,” he says.
Generative AI can therefore bring a number of benefits to the financial sector:
- Data analysis and forecasting: AI can analyze large volumes of financial data quickly and accurately, identifying patterns, trends and insights that can help with decision-making. It can predict market fluctuations, identify investment opportunities and help with risk management.
- Customer service: AI can improve the customer experience, as AI-powered chatbots can provide instant support to customers, answer frequently asked questions, assist in problem solving and offer personalized financial guidance. This speeds up service and provides a better customer experience.
- Fraud detection: Technology can be used to identify suspicious activity and potential cases of financial fraud in real time. With advanced machine learning algorithms, AI can analyze transactional data, behavioral models and unusual patterns to detect possible fraud and alert financial institutions and the customers themselves.
- Process automation: AI can automate manual and repetitive financial tasks, such as processing documentation, reconciling data and preparing reports. This reduces human error and the need for manual intervention, increasing efficiency and productivity.
The transformation that Artificial Intelligence has brought about in the financial sector is indisputable. It is expected that these advances will become even greater with the democratization of the use of generative AI, not only in financial institutions, but in so many other segments.
If you want to know more about how generative AI can transform your business, get in touch with our team!