How ChatGPT will disrupt banking and financial services?

Technology in today’s fast-paced life is taking great leaps every passing day and one such technology that has stolen every tech enthusiast’s attention is ChatGPT. Launched in 2022 by OpenAI, ChatGPT has earned itself much name and fame in the arena of emerging technologies and as a result, many sectors have integrated and adopted it into their systems.

One such prime sector is banking a financial service, where ChatGPT can assist in automating certain mundane tasks, offering financial planning for individuals, and detecting possible loopholes to curb fraudulent activities on a real-time basis. 

Here in this article, we will talk about how banks and financial institutions can benefit by incorporating ChatGPT in their operations. 

7 ways how ChatGPT will disrupting the banking and finance industry?

Streamlining repetitive tasks

ChatGPT being an AI-based module can effectively automate certain tasks which need to be done on a routine basis. Mundane tasks which humans used to do like opening an account for customers or processing their loan application by checking their credit ratings or verifying their documents can be taken care of by ChatGPT.

Virtual financial advisor

ChatGPT can offer certain advice to customers and manage their investment portfolios based on their individual risk appetite and net worth. A more specific type of recommendation can be offered to the investors as ChatGPT can integrate with other technologies like blockchain to become safer and more robust.

Effective customer service

A human can handle one-to-one conversations effectively, but ChatGPT being an AI module can effectively handle conversations with several clients. Nevertheless, financial institutions can lower their operating costs by getting more work done in much lesser time in a much more diligent way by going for AI development. 

24/7 service availability

The AI-based module of ChatGPT ensures that it offers round-the-clock services and deals globally in a client-centric way where clients can interact comfortably in their own time zone. 

Better sales and marketing

ChatGPT with its insights can assist the marketing team of financial institutions to design and target their potential customers in a more effective way that will lead to sales. Even an existing customer can be recommended for a certain product by analyzing the customer data, which will result in an upselling. 

Reduction in error

ChatGPT can detect and correct certain errors and omissions which can be overlooked by human error and this will result in a much better standard and reputation for a financial institution. 

Fraud detection

The AI module of ChatGPT comes in handy in analyzing client behavior on a real-time basis for safety surveillance. So that in case of any possible fraudulent activity, the financial institution and law enforcement authorities are alerted before any harm takes place. 

Conclusion

ChatGPT is a great AI-based tool that has the potential to disrupt banking and financial institutions like blockchain technology says an AI expert at Rejolut. Considering the fierce competition in the banking and financial industry and the rising popularity of the DeFi module, 24/7 customer service along with easy accessibility is the need of the hour. ChatGPT offers several benefits to the banking sector provided the privacy concerns and security requirements are taken care of, as peace of mind is of paramount importance.