Artificial Intelligence in Improving Bank Financial Performance
Today, one of the most important financial issues for banks is measuring their performance. Measuring the financial performance of banks is important because it is the basis for many decisions inside and outside the bank. Decisions related to investments, increasing the capital of organizations, agency relationships, and many other decisions are all based on measuring performance. Financial performance evaluation is one of the basic and necessary measures in the planning and goal setting of managers. In fact, evaluation not only helps managers in choosing financial strategies and structures, but also shows how strategies and financial structures affect the value of banks' shares. Therefore, measuring bank performance is an overall assessment of the financial situation and operating results in order to make rational decisions. In order to improve the financial performance of banks and increase the profit per share, bank managers should give more importance to the organization's relational and human capital, which includes customer capital and the knowledge, skills, and abilities of employees. In order to improve financial performance and increase the total return on common stock, bank managers should pay special attention to customers and their relationships.
The increasing expansion and complexity of economic activities on the one hand and the need to provide accurate and extensive information through financial systems on the other hand have led to the development of principles and the invention of new methods and solutions and the acceleration of the transformation of conventional methods in the last few decades. The set of these methods and techniques, which have been invented, developed and evolved during the progress of financial reporting in response to the increasing needs for financial information, is called financial statement analysis, which aims to evaluate the past performance of business units, especially profitability, efficiency, liquidity and investment as criteria for financial performance on the one hand and to provide the necessary information for planning future operations on the other. One of the goals of accounting is to interpret financial information for the purpose of decision-making by various individuals and authorities, including investors, creditors, banks, credit institutions, government financial and economic authorities, research centers and other interested parties.
Artificial intelligence systems improve the financial performance of organizations through the correct and advanced use of information related to competitors, customers, suppliers and internal business operations of organizations. Of course, initially, a suitable structure for artificial intelligence in the desired organization must be designed according to the analytical needs of that organization. Also, the organization's information technology infrastructure must be able to support the desired structure.
One of the industries that has undergone major changes today is the banking industry. Today, the main focus of banking is on customer centricity and responding to their needs. With the changes that technological advances have made in people's daily lives, the traditional banking system also had to make fundamental changes to keep up with this lifestyle and meet customer expectations.
From the abundant use and strong traction of this technology in global businesses, it is clear that the financial services market will also be rapidly affected by advances in artificial intelligence more than ever before. In a digital bank, AI technology can be used for a variety of things, including rule-based automation, personalized recommendations, learning user preferences, virtual assistants, customer service, and other functions. AI, when combined with natural language processing methods, can provide a powerful virtual assistant. AI has also impacted the banking industry. In today’s digital economy, AI has transformed many bank processes.
The most obvious way the banking industry is using AI to provide customer service is through chatbots and bots. Many of the largest financial institutions, such as Bank of America and JPMorgan, are using AI to simplify customer service. These intelligent agents are growing as natural language processing, speech and topic recognition capabilities, and access to massive amounts of real-time data improve. Chatbots are the starting point on the path to interactive channels and should not be confused with the destination or goal.
Most current bots have limited capabilities. Many of these bots are simply replacements for the FAQ section of websites. However, forward-thinking banks are going further and using bots to monitor transaction services and interact with users properly. This approach is the first step to supporting all banking services, whether sales or advice, with a high level of personalization, user-friendly interaction and automation.
For example, Capital One Bank is expanding its capabilities with Amazon Alexa to provide users with the ability to check account balances, review transactions and pay bills and loans. Such an approach demonstrates the power of voice and interactive systems in banking and bank cards. Users simply need to log into the Capital One system using their voice and enjoy its extraordinary capabilities.