Major financial institutions in the U.S. are no strangers to innovation. Automated Teller Machines, mechanical money counters, complex security systems – the financial industry has never been afraid of testing new technologies. In the digital age, banks have developed mobile apps, adopted Zelle digital money transfers and payments, and are now investing in artificial intelligence.
Here are four major banks using AI to find competitive advantages.
COIN by JP Morgan Chase
Like many businesses delegating tasks to digital workers (robots), Chase has found a way to do more work in less time. In June 2017, Chase implemented a new program called COIN (Contract Intelligence) to leverage Robotic Process Automation (RPA) to increase work capacity. COIN is part of the bank’s push to automate administrative tasks related to and create useful new tools for its bankers and clients.
The program uses machine learning to interpret, analyze, and extract data from commercial loan agreements. A task that previously took loan officers and lawyers a total of 360,000 hours a year is now completed within seconds, thanks to help from COIN.
Automation is now a growing part of JP Morgan’s $9.6 billion technology budget.
ERICA by Bank of America
Seeing the success of virtual assistants like Siri and Alexa, Bank of America rolled out their new AI financial digital assistant, Erica.
Via text or voice commands, Erica can complete various banking tasks like:
- Confirming account and routing numbers
- Sending money to family and friends
- Viewing bills and scheduling payments
- Searching for previous transactions
- Transferring money between accounts
- Freezing and unfreezing debit cards
Other banks are likely to follow suit, offering greater services from chatbots like Erica in the following years. Those services might include financial advice, fraud prevention, and other advanced functionality.
HighRadius From PNC and Citibank
To avoid falling behind in innovation, PNC and Citibank are also looking for ways to utilize AI.
In February 2018, both banks announced their strategic investment in B2B payment and receivables software company HighRadius. The platform uses AI to automate tasks that normally require human intervention – optimizing cash flow from credit, collections, deductions, billing, and payment processing.
The ultimate goal is to make B2B financial processes more efficient. Currently, over 50% of B2B payments are still handled through paper checks and manual data handling. The software also provides a B2B payment network to allow suppliers to connect digitally with buyers.
Ready to bank on what the ‘bots’ can do for your business? Contact Novatio Solutions today!