The allure of artificial intelligence (AI) and automation in banking is undeniable. From streamlining loan approvals to automating mundane tasks, these technologies promise a future of increased efficiency, reduced costs, and happier customers. However, the reality of AI & automation in banking can be far less rosy. Studies show that 85% of AI projects fail to deliver on their promises.
One of the main culprits behind these failures? Poorly chosen use cases. Simply throwing AI at a problem isn’t a magic solution. As with any shiny new technology hype, it can lead to wasted resources and frustration.
In our companion article, “Dominate With AI: A 5 Stage Guide For Business Leaders To Identify And Prioritize High-Impact AI Projects“, we delve deeper into practical methods for uncovering hidden opportunities across all departments.
This article dives into 45 compelling use cases across various banking departments that are prime candidates for process automation and AI. All have been created by SilkFlo and other experts over years of digital transformation initiatives. By focusing on areas where these technologies can bring real value, banks can increase their chances of success and unlock the true potential of AI and automation, with less risk and cost.
Retail Banking
- Loan Application Processing: Automating document verification, income verification, and creditworthiness assessment can significantly speed up loan approvals.
- KYC Verification: AI can streamline Know Your Customer (KYC) compliance by automatically verifying customer information against databases.
- Credit Card Approval: Automating credit card application review and leveraging AI for credit risk assessment can expedite approvals.
- Customer Complaint Handling: Utilize AI-powered chatbots to categorize and resolve common customer complaints, improving customer satisfaction.
- Overdraft Protection Enrollment: Automating the processing of customer requests for overdraft protection and linking accounts can save time and improve accuracy.
Compliance
- Regulatory Reporting: Automate data collection and report generation for regulatory bodies, ensuring timely and accurate submissions.
- Credit Report Dispute Resolution: AI can analyze credit report disputes and suggest resolutions, expediting the process.
- Customer Due Diligence: Automate periodic reviews of high-risk customers to ensure ongoing KYC compliance.
- Suspicious Activity Reporting (SARs): AI can analyze transactions to identify suspicious activity and automate SAR filing.
Credit Cards
- Credit Card Approval: As mentioned earlier, automate application review and leverage AI for creditworthiness assessment.
- Credit Card Chargeback Processing: Automate the processing of customer chargeback requests, improving efficiency.
- Credit Card Reward Point Management: Automate reward point calculation, application, and adjustments.
- Credit Card Limit Management: Leverage AI to analyze customer spending patterns and credit scores to recommend adjustments to credit limits.
Branch Operations
- Cash Management: Automate cash forecasting, ordering, and ATM replenishment schedules.
- ATM Maintenance Scheduling: Implement AI-powered predictive maintenance to schedule ATM servicing and prevent downtime.
- Deceased Account Management: Automate workflows for handling deceased accounts, including document review and fund disbursement.
- Branch Audit Preparation: Automate document and data collection for branch audits, saving time and resources.
- Safe Deposit Box Management: Automate safe deposit box inventory management, access control, and billing.
- Check Stop Payment Processing: Automate receiving and processing requests to stop payment on checks.
- Branch Cash Reconciliation: Automate daily cash drawer and vault balance reconciliations.
- ATM Journal Reconciliation: Automate reconciliation of ATM transaction journals with bank records.
- Branch Opening/Closing Procedures: Automate daily procedures for opening and closing bank branches.
- Branch Teller Balancing: Automate teller drawer balancing and transaction reconciliation at the end of each day.
- Branch Staff Scheduling: Utilize AI to optimize work schedules for branch staff, ensuring adequate coverage.
Loan Operations
- Loan Application Processing: As mentioned earlier, automate document verification, income verification, and creditworthiness assessment.
- Loan Document Preparation: Automate loan document generation for customer signature and internal records.
- Loan Payment Processing: Automate applying loan payments to correct accounts and updating loan balances.
- Loan Payoff Calculation: Calculate loan payoff amounts upon customer request, including interest and fees.
- Loan Covenant Monitoring: Automate tracking and verification of compliance with loan covenants for commercial loans.
- Credit Line Renewal: Automate the annual review and renewal process for lines of credit.
- Branch Cash Shipment Verification: Automate cash shipment verification and logging upon receiving at branches.
- Loan Customer Data Migration: Automate customer data transfer when switching or upgrading core banking systems.
Customer Service
- Customer Complaint Handling: As mentioned earlier, utilize AI-powered chatbots to categorize and resolve common customer complaints.
- Beneficiary Designation Updates: Automate processing changes to beneficiary designations on accounts.
- Customer Profile Updates: Automate updating customer information across multiple banking systems.
Operations
- Customer Statement Generation: Automate compiling and generating monthly account statements for mailing or electronic delivery.
- Check Image Retrieval: Automate searching for and retrieving check images upon customer or internal request.
- Account Reconciliation: Automate reconciliation of various bank accounts and general ledger entries.
- Returned Mail Processing: Automate handling and investigating returned customer mail.
Wealth Management
- Customer Account Aggregation: Automate aggregating customer account information from multiple sources for a comprehensive view.
Risk Management
- Loan Collateral Valuation: Automate the valuation of collateral for secured loans.
- Credit Score Monitoring: Regularly check and update customer credit scores in bank systems.
Treasury
- Wire Transfer Processing: Automate inputting and verifying wire transfer details for domestic and international transfers.
- Foreign Currency Exchange: Processing customer requests for foreign currency exchange and managing currency inventory
- Wire Transfer Reconciliation: Reconciling daily wire transfer activity with correspondent bank statements
Unlocking the Potential of AI and Automation in Banking
By strategically targeting the right use cases, AI and automation technologies can transform how your bank operates. This list provides a springboard for innovation and ideation, but it’s just the beginning.
Ready to see the power of AI in action, but not sure how to start?
SilkFlo can help you build a robust pipeline of high-impact use cases and accelerate your AI journey.
Contact us today for a free demo and see how we can unlock the full potential of AI and automation in your bank.
