DIGITAL BANKING
As we approach 2025 , AI and machine learning are poised to continue evolving the banking sector , as leading financial players seek to enhance operational efficiency , improve customer engagement and offer innovative financial solutions .
While the legacy banking industry has long been seen as lagging behind digital competitors – chiefly newly-formed neobanks – Scott Hofmann , Chief Revenue Officer , US at GFT , believes that banks ’ AI and machine learning deployments will mature in three main areas in 2025 : fraud detection ; customer service ; and risk and compliance .
“ Banks will scale their ability to scan transactions for suspicious activity in real time , at a rate that would be nearly impossible to accomplish manually ,” Scott explains .
This real-time scanning capability represents a significant leap forward in banks ’ ability to protect customers and themselves from fraudulent activities .
By leveraging AI and machine learning algorithms , banks can analyse vast amounts of transaction data instantaneously , identifying patterns and anomalies that might indicate fraudulent behaviour .
Prashant Jajodia , Managing Partner & Financial Services Sector Lead at IBM , emphasises the impact of generative AI on fraud detection .
“ Gen AI is reducing the time and cost of modernising legacy platforms by more than 50 %, improving ROI ”
PRASHANT JAJODIA , MANAGING PARTNER & FINANCIAL SERVICES SECTOR LEAD , IBM
68 December 2024