As new technologies continue to reshape industries, the financial sector is no exception, with artificial intelligence (AI) playing an increasingly crucial role. In an interview with Biznis.rs, Snežana Ignjatić, Director of the IT sector at Erste Bank Serbia, discusses the growing use of AI in banking, its benefits, challenges and its future potential.
The current role of AI in banking
AI is rapidly transforming banking operations, offering numerous applications in areas such as product and service personalization, risk and fraud management, process optimization, and digital marketing. According to Ignjatić, AI’s most prevalent use in the banking sector globally, including in Serbia, is the deployment of chatbots that assist customers by providing information and support. However, the full potential of AI is far from being realized, as its long-term impact is still unfolding. Just as the first telephone’s potential couldn’t be fully imagined at the time, the future of AI in banking remains a vast unknown, though its significance is certain.
Impact on banking processes: Advantages and risks
AI’s potential to improve banking operations is substantial, especially in automating repetitive tasks, which increases efficiency. For example, document processing is already being automated using Optical Character Recognition (OCR) and Natural Language Processing (NLP) technologies. AI also aids decision-making by creating predictive models, speeding up various processes. However, AI also brings risks, such as data privacy concerns and the potential for biases or lack of transparency in AI-driven decisions. Ignjatić stresses the importance of setting clear rules for AI technology’s use, along with regular reviews and control mechanisms to mitigate such risks.
Addressing misconceptions about AI
Public misconceptions about AI often revolve around fears of AI gaining independent consciousness. Ignjatić reassures that today’s AI operates solely based on algorithms and available data, and its current applications are far from developing self-awareness. AI, she emphasizes, has the potential to greatly improve lives and work processes, and the focus should remain on its development to realize these benefits.
AI and personalization in banking services
AI’s ability to personalize services is a game-changer for customer experience in banking. By analyzing large datasets, AI can help banks understand customer behaviors and needs, leading to highly tailored services. For example, chatbots can provide real-time customer education, guiding them through financial products and services, and offering personalized recommendations. This level of personalization is essential for improving client relationships and enhancing user satisfaction.
The role of AI tools like ChatGPT in customer communication
One of the most promising AI tools for banking communication is ChatGPT, which can be used to create chatbots that engage customers in personalized conversations. While these chatbots excel at handling simple, routine queries, complex or emotionally charged issues still require human intervention. The challenge lies in balancing AI technology with the human element to ensure reliable and empathetic communication.
The future of automation in banking: Robotic Process Automation (RPA)
Robotic Process Automation (RPA) has already been used extensively in banking to automate tasks like data entry and verification. While RPA is not a new technology, it continues to evolve and support process optimization across various banking functions.
The IT sector’s future in banking: Trends and challenges
The future of banking is headed toward full digitization, where customer-centric services are delivered securely and efficiently across digital platforms. According to Ignjatić, banks will increasingly rely on technological development, and the distinction between IT and business will blur. Agile, multifunctional teams will be crucial in creating rapid solutions for clients. AI will play a significant role in the evolution of data processing, cybersecurity, financial consulting, and digital banking.
However, balancing innovation with the highly regulated and conservative nature of the financial industry remains a challenge. Ignjatić believes that regulation doesn’t hinder innovation but rather ensures that new products and services are safe and compliant. It serves as a safeguard, especially in the digital age, where data security is paramount.
Advice for young professionals interested in AI in finance
The rapid pace of change in the financial industry necessitates constant learning and adaptation. Ignjatić advises young professionals aspiring to work with AI in the financial sector to focus on digital literacy, technical skills, and understanding emerging technologies like Cloud computing, microservices, DevSecOps, and data science. As AI continues to evolve, new career opportunities will arise, making this a promising field for young experts.
In conclusion, AI holds immense potential to revolutionize the banking sector by enhancing operational efficiency, personalizing customer experiences, and supporting business growth. However, it is essential to approach this technology responsibly, addressing risks while leveraging its capabilities to improve the banking experience for customers.
