10 Best Use Cases Of AI In Banking Apps Development In 2022
Artificial Intelligence in Banking is a buzz in today’s digital environment. The AI technology in banking sector is evolving at a rapid speed. Banking and financial organizations have increasingly used AI applications and infused AI power into their systems to track and detect fraud transactions with ease.
Besides ensuring security to customers’ banking accounts, AI apps in banking sector will also play a key role in personalizing the customer experience, making informed credit-related decisions, and for risk assessment functions. Hence, with the quick emergence of AI in mobile banking sector, the banks, and financial service providers have been optimizing the way they interact with their audience.
This trend had laid the foundation for the AI-powered mobile banking apps development long years back. Driven by their built-in digital banking capabilities, the craze for mobile baking applications or FinTech apps has increased.
Moreover, the demand and use of mobile banking apps are crossed the sky limit since the outbreak of COVID-19. With sudden lockdowns and fear of viral infection, people are more attracted to digital banking applications over the recent two years.
According to the research reports, nearly six million people have installed banking apps as a result of COVID-19. The growth rate of finance apps and banking apps for Android and iOS have doubled in 2020 due to the consequences of coronavirus impact in 2019.
So, this is the right time to develop banking apps and digitize your traditional banking services. If you are looking ahead to AI-based banking mobile apps development (Android/iOS), firstly know the significance of AI in banking apps development, build your confidence level, have a plan, and hire the best mobile app development company for getting your app developed on desired platforms.
Uses Cases Of AI In Mobile Banking App Development
Here are a few best applications of AI in the banking sector that help banks build more digital interaction with their customers.
#1. Smart Virtual Assistance
AI-based conversation chatbots are occupying major space in banking apps development. To provide continuous customer support 24*7, Android/iOS mobile app developers are integrating chatbot features in mobile banking applications.
Adding AI chatbot feature in banking apps let banks provide virtual assistance and better communicate with customers at any time from anywhere. Without putting much effort into human customer support executives, banks can deliver high-level assistance to their customer’s queries.
Apart from interaction, the benefits of AI virtual chatbots in the banking sector are enormous. They can be used for sending push notifications regarding transactions in real-time, informing customers about their account balance for better budget management, and sending updates on credit bill payments and all.
Hence implementation of AI chatbots in banking applications saves time, money, and takes banks to customer communication to the next level.
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#2. Virtual Data Analysis
It is the best use case of AI technology for banks and financial service providers. There are nearly millions of transactions that will happen in a day. Gathering all information and maintaining records manually are tedious tasks for bankers.
AI-based mobile apps designed for the banking industry have full potential to upload, collect, and analyze vast data sets in a fraction of a minute. AI technology empowers banking applications to monitor transaction history and trigger fraudulent acts if any.
Such banking data collection and analysis will also help bankers in approving loans, exploring creditworthy insights, preventing frauds, and improving customer experiences.
#3. Credit Risk Management
Artificial Intelligence (AI) and Machine Learning (ML) algorithms are like bullet-proof jackets for banks and finance providers. AI and ML infused mobile banking apps let finance service providers track and evaluate the credit eligibility of customers in minutes.
AI software applications using ML and deep learning algorithms can deliver valuable insights from the financial history and credit score of finance borrowers. These data insights assist banks in determining credit eligibility and reducing risks related to loan recoveries.
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#4. Automation Across Processes
The advantages of AI in banking app development are infinite. Automation is one of the significant benefits of using AI in the banking industry. Leveraging the power of cutting-edge AI technologies, including machine learning algorithms, AI banking apps, and AI systems, can make the entire banking process virtual.
For instance, custom AI banking apps with a built-in chatbot feature will help customers get instant responses for their desired banking-related queries. Thank AI mobile technologies. Everything has gone virtual, and every service was just under the fingertips with the evolution of Artificial Intelligence-powered mobile banking applications.
#5. Digital Analysis Of Sentiments
It is one of the tops and notable benefits of integrating AI technologies in banking apps. AI mobile apps can interpret customer sentiments virtually by analyzing their responses. These virtual sentiment analysis models let banks provide more personalized and scalable services to their customers.
#6. Data Security
According to the international trade commissions, credit card frauds are kept on increasing worldwide. AI-enabled banking systems can put a check for such offenders. AI-powered finance apps can analyze customer data effectively to detect, sort, and organize clean records of customer banking information in cloud storage for further usage.
Hence, AI and ML algorithms play a vital role in triggering security issues and protecting user data from intruders or cyber thefts.
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#7. Enriches Money Remittance Functions
Enriching user experiences while they remit or transfer money to accounts is a crucial part of finance management. The banking and FinTech industries using AI and ML technologies can convert confidential and unreadable transactions data into user-readable information for enriching their banking experience.
AI in financial management apps taps location and receiver or merchant name. It helps customers know the place and to whom they transferred their money. Such AI-based analysis helps customers to manage and balance their budget and spending.
On the other hand, AI applications for fraud detection have also gained popularity. Fraud detecting tools and applications can track fake credit card bill payment-related calls and keeps customers informed about such fake calls.
#8. AI For Compliance
Banking and financial service providers might face challenges to keep pace with the frequently changing banking rules and regulations. They need to update the privacy policies as per the rules imposed by the government authorities.
For instance, without prior written consent from the customers, banks have no right to collect or share their data.
AI-powered applications can efficiently deal with regular change management. AI-based software apps are best for better data management and risk assessment.
AI-based software assist financial institutions to increase the accuracy in identifying the rules that apply to them. AI applications in banking let banks maintain clean data records as per the compliance rules and protect bankers from hefty fines.
#9. 100% reduces human errors
Human data entries might lead to errors, but an AI-infused system never gives a chance to mistakes in data. For instance, instead of typing 1K, if employees add even a single zero digit on the right side of the number will lead to huge losses.
Hence, manual processes are ineffective and highly prone to errors. The adoption of AI and ML technologies in banking will mitigate human errors and ensure high productivity.
#10. AI Can Spot Market Trends
It is one of the best use cases of AI and ML in banking sector. ML algorithms can spot data patterns in the banking industry and forecast market trends.
AI application for banking sector allows banks to manage huge data sets at an eye blink time and derive valuable insights. These insights help banks to better understand customer behavioral patterns and predict market trends.
This automated process enables banks to customize their products and services as per customer needs to enhance personalization, well-engage customers, and build strong relationships with customers.
There are a few best applications of AI in finance and banking industry. Almost 70% of banks and financial service providers are reaping the benefit of AI and its technologies. They have recognized the power of AI technology in banking and flagged off green signals for AI-based software applications and systems in their processes.
How Much Does It Cost To Banking App Development in 2022?
Based on the application complexity, features, and platform type, the banking app development cost can range between $85K-250K.
If you outsource your mobile app development project or hire an in-house app development team in India, you can get your app developed for $100K-120K.
However, this is a roughly estimated cost for developing a banking application, whether on android/iPhone operating systems.
Further, if you want to develop your banking app by integrating more advanced features, the development cost of the Android/iPhone banking app will exceed the estimated budget limit. Here are a few most advanced features that will impact overall mobile app development cost.
- ATM connectivity
- GPS navigator for locating nearest banks
- Voice recognition capabilities
- Multi-factor authentication system
- Utility or bill Payments etc.
Talk to our mobile app development experts in India and get the best app quote for your banking app projects.
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According to the market research reports, the market size of global AI in banking sector is valued at approximately $4 billion in 2020. This number is expected to reach nearly $60 billion by the next coming ten years.
Customer habits towards online transactions, online balance checks, and the trend of digital payments are the three foremost drivers for the tremendous growth of Artificial Intelligence (AI) in the Banking Industry.
COVID-19 pandemic is also a growth driver for AI in the banking market. Banks & FinTech agencies during peak COVID season are rapidly adopted intelligent AI and ML-enabled software applications for performing continuously.
Overall, AI-powered software solutions for banking have become an integral part of business growth. AI apps help banks remain competitive and stay connected with their customers whenever they need your services.
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