GlobalData: Artificial intelligence to significantly impact retail banking

ARTIFICIAL INTELLIGENCE IS likely to significantly impact the retail-banking sector, such as assigning credit ratings to potential borrowers and interacting with consumers by offering basic personal finance advice, according to a recent report by data-specialist firm, GlobalData.
ARTIFICIAL INTELLIGENCE IS likely to significantly impact the retail-banking sector, such as assigning credit ratings to potential borrowers and interacting with consumers by offering basic personal finance advice, according to a recent report by data-specialist firm, GlobalData.

LONDON – GlobalData, a data-specialist firm, released a report showing artificial intelligence is likely to significantly impact the retail-banking sector.

The company reported artificial intelligence, or AI, will also be used to assign credit ratings to potential borrowers, according to a press release.

The specific technologies would include machine learning, predictive analytics and natural language processing, or NLP, which GlobalData said are already impacting the banking sector.

NLP, such as “chatbots,” are beginning to interact with consumers, offering such services as basic personal finance advice.

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“Consumers, especially younger ones, can lack confidence around financial matters and find it hard to manage their finances effectively,” said Daoud Fakhri, principal analyst for retail banking at GlobalData. “There is therefore a potentially large market for AI-based services that offer a guiding hand or can assume some of the responsibility for making appropriate decisions.”

Some lenders, the report said, are also using AI to analyze nontraditional types of data – including mobile phone usage and social media portfolios – to predict the creditworthiness of borrowers.

The full report can found HERE.

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