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AI to drive banks into new era of efficiency
SALEKEEN IBRAHIM
Modernisation and innovation are key to staying ahead in the ever-evolving landscape of the financial industry. Currently, the financial institutions of Bangladesh find themselves at a crossroads.
At this point in time, while the nation is moving towards smart Bangladesh, it is quite predictable that technology and artificial intelligence will play a big part in reshaping the future of banking services.
Embracing AI gradually can not only drive banks into a new era of efficiency and customer satisfaction, but it can also align seamlessly with the government’s far-sighted concept of Vision 2041.
To embrace this transformation, at first, we should give emphasis on automating regular routine tasks through the machine learning process. These could range from customer queries to transaction processing, streamlining operations and allowing human resources to be relocated towards more strategic and value-added activities.
The installation of chatbots powered by natural language processing could develop customer interactions, providing immediate assistance and elevating the overall service experience. This not only enhances operational efficiency but also positions banks as a tech-savvy entity with an increasingly digital-savvy consumer base.
Moving forward, the next stage will involve the integration of predictive analytics and AI-driven insights into banks’ decision-making processes. Machine learning algorithms can analyse vast databases to identify patterns, detect inconsistencies, and predict market trends. By connecting these capabilities, banks can think of decisions based on data-driven suggestions, offering personalised financial products and services tailored to individual customer requirements.
The widely used assessment processes like credit scoring or psychometric trials, for instance, can benefit from AI algorithms surely, enabling a more accurate assessment of creditworthiness and reducing the risk of non-performing loans. So, the balance between business aggression and risk mitigation will get a new dimension through the incorporation of AI in the comprehensive risk assessment process.
Collaboration between private banks and the government becomes crucial in this journey where the attention shifts to enhancing cybersecurity through advanced AI solutions.
As financial transactions become increasingly digitalised, the threat of fraud attempts evolves accordingly. By leveraging AI-powered cybersecurity tools and techniques, banks can proactively ascertain and mitigate potential risks, safeguarding customer data and maintaining the integrity of financial ecosystems. This collaborative effort aligns with the government’s vision for a secure and resilient digital infrastructure.
At a certain stage, there will be a substantial leap forward as banks in Bangladesh will have to embrace AI-powered customer relationship management (CRM) systems. These systems will be able to analyse customer behaviours, preferences, and feedback to provide hyper-personalised services.
Automated wealth management tools driven by AI can offer tailored investment advice with lower risk, enhancing the overall financial well-being of customers.
In the matured state, the integration of blockchain technology and AI holds the key to revolutionising core banking operations. Smart contracts powered by AI algorithms can mechanise complex financial transactions, reducing processing timings and minimising errors.
In conclusion, the integration of AI in the banking sector of Bangladesh represents a journey towards a more digitalised and customer-centric future. Private banks and the government must collaborate closely to navigate this transformation, ensuring that each phase aligns with the Smart Bangladesh concept.
The author is a senior banker