With Artificial Intelligence evolving rapidly spurring industries across the world, technology is transforming businesses with its power. As every sector wears too many hats in designing and developing distinct approaches and techniques to remain competitive in a world driven by technology, the banking sector is no exception.
AI in banking has encouraged several radical transformations by providing individualized, frictionless customer experiences to drive customer loyalty and automate numerous processes to help every individual in the industry. Besides offering the best services to customers, AI in the banking sector encourages employees to do more intuitive work and boost their abilities.
According to a recent survey, AI is expected to double the tenure of employees in banking from 1.5 years to 3.02 years. So, basically the question will be how AI is triggering the upsurge of employee tenure in banking?
Role of AI in Doubling Employee’s Tenure
Major findings reported in the study also included that with the implementation of AI in banking– the individual employee average tenure doubled from the industry average of 1.5 to 3.02 years. It was also observed that the response rate in organizations had multiplied when communicating with AI from 33 percent to 60 percent.
Employee Engagement Statistics Influenced by AI
The banking, financial services, and insurance sectors trigger a large percentage of global GDP, supporting several million people worldwide. Yet as far as the people who work in the industry are concerned, they seem far from engaged and satisfied.
Global surveys indicate very less employee engagement of just 33 percent and a 24 percent employee turnover rate — one of the highest in all business sectors. This is further exasperated by substituting a skilled employee with 6-24 months of salary, depending on the role and seniority of each employee.
Increased Productivity of HR Business Partners
A 40% increase in productivity was observed in the human resource business partners. Many applications of AI helped organizations across the banking industry achieve a reduction of time in manually collecting, grouping, and analyzing various feedbacks of the employees.
The report further indicated that with Artificial Intelligence and HR business partners are capable of forecasting, strategizing, evaluating, and monitoring measures to avoid potential downsizing.
Generating New Roles in Banking
AI encourages people to take on more value-added jobs. Several operational roles will become more insight-driven and strategic with the introduction of AI. This will help to transform many mono skilled workers to become multi-skilled.
Most of the bank employees have already identified a growth in machine-workers collaboration as one of the top three trends they can see in the workplace. Jobs may also become increasingly specialized, as more precise data volumes allow more insights to be explored.
AI Bringing Employee-first Practices to Reality
What was only in pen and paper is now being put into reality with AI. The companies work in their HR departments to decentralize decision-making, making members accountable to individual workers as the latter has its eyes on the delivery of the experience.
Potential businesses are looking inward and outward to enforce worker-friendly cultural and organizational changes, along with policies and cautious actions that demonstrate their services.
Eliminating Persistent Problems in Banking
AI is making immense progress in the aspects of banking compliance and security. With money laundering remaining a daunting problem for the global banking industry, there is considerable anticipation with the help of technologies such as machine learning, data mining, and analytics, which can counter this threat.
This kind of banking practice is helping banks that are being fined more frequently because of failures and limitations in their anti-money laundering infrastructures.
Automating Mundane Jobs to Improvise
With the introduction of AI, only the most routine jobs, such as data entry, will be replaced by machines. New posts are likely to be generated around the AI applications in such fields as compliance to ensure that required solutions are provided with sufficient communication.
Many organizations believe that AI liberates employees and allows then to work on more exciting and complex jobs. AI has been something of a buzzword for many businesses and not just in banking.
The potential for true change in the banking industry lies behind the hype of AI. And with specialized software, banking sectors are now equipped with ever-increasing processing systems.
This allows stronger and more augmented AI systems and vastly improved infrastructure to mine and feed data for even greater capabilities into complex systems. The banking industry now realizes to what degree Artificial intelligence can positively transform and how it operates.