Finance and Banking Industry Enters the AI Age

The 90s was revolutionary for the banking and finance sectors, with institutions digitizing paper processes and online banking going mainstream.

Now, a new era awaits the industry.

Artificial intelligence will impact almost every aspect of banking and finance, from customer interactions to risk management. However, 87% of financial executives are unprepared to adapt to these changes.

Here’s how your company can successfully enter the AI age.

Understanding the Impact of AI

AI, in its various forms, has been around for a few years now. However, more companies in the banking and finance sectors are incorporating this technology to:

  • Communicate with customers
  • Prevent fraud and other risks
  • Determine the creditworthiness of customers
  • Reduce costs

For example, chatbots and virtual assistants can help your company exchange information with customers. These technologies simulate human conversations, answering commonly asked questions about your services. That can free up time for customer service teams.

It’s important to understand the potential and challenges of artificial intelligence. For example, knowing the limitations of AI can prevent you from relying too much on this technology.

However, you should also know that this innovation is here to stay. Research suggests that ten years from now, AI will handle up to 25% of all work across different bank functions.

How to Prepare for Impact

You should take several steps to get ready for the AI age, including hiring candidates who understand this technology and aligning existing teams.

Recruiting Top AI Talent

There’s a misconception that AI will replace human workers. However, this technology requires people to design, integrate, and maintain it. So, you’ll likely need to expand your existing team.

Some of the most sought-after job roles for AI integration include:

  • Data scientists
  • AI/machine learning engineers
  • Business intelligence developers
  • Big data engineers/architects

All these roles can help you get more value as you fully incorporate AI into your institution.

But where will you find all these job candidates?

Working with talent strategy and recruitment specialists is your best bet. These professionals can find the most qualified and experienced AI experts based on your long-term integration goals.

Upskilling Current Employees

As AI becomes more ubiquitous, existing team members must navigate this technology in their jobs. Upskilling will help them automate processes, improve customer service outcomes, identify cost-saving measures, and achieve other goals.

Take loan officers, for example. AI allows them to detect fraudulent applications, verify borrower information, and connect with potential customers more effectively. Learning how to use this technology could improve their performance and productivity.

Some of your team members might be reluctant to embrace AI — especially if they fear it will take their jobs. However, training will soon make them realize this is not the case. While upskilling your employees requires an outlay, it could provide a return on investment once AI successfully automates day-to-day workflows.

Aligning Existing Teams

Several of your existing departments can help you prepare for AI integration. These teams include:

  • IT
  • Data science
  • Business development
  • Finance (for distributing funds for AI technologies)
  • Human resources (for recruiting AI professionals)

Aligning these teams makes sense. It will break down any silos that exist between departments, resulting in more open communication and transparency.

Management also needs to be on the same page when it comes to integrating AI. You should have a clear strategy for implementing this technology that includes timelines and projected outcomes. When managers understand your vision for AI integration, they are more likely to support your efforts.

Other Steps for Incorporating AI into Your Business

AI integration will be a long process. However, you can improve your chances of success with these best practices:

  • AI is evolving all the time. Pay attention to the latest trends to determine which technologies are a good fit for your business.
  • Learn the negative impacts artificial intelligence can have on customers and your company. Many institutions now follow ethical AI principles.
  • Think about how AI applications will integrate with your existing software. You’ll want to solve any compatibility issues for smoother AI adoption.

Hiring Professionals in the AI Age

The AI era is here, and it’s about to transform the entire banking and finance sector. You’ll need to prepare for this monumental change by aligning your existing teams and upskilling employees.

You’ll also want to add AI professionals like data scientists and engineers to your current team. MRINetwork is a talent strategy and recruitment agency that can help you find the perfect people for different job roles, making AI adoption more successful.

Find your local MRINetwork office now!