Page 491 - ISC PROCEEDINGS 21.4

2.2.2. Key components of banking in the era of artificial intelligence
Intelligent customer service
By implementing AI technology, banks are transforming their customer service
methodologies, achieving a level of excellence far surpassing traditional business
practices. AI enables banks to transition from mass-market services to highly
individualized experiences tailored to actual needs. Customers are respected, listened to,
and advised, which allows banks to enhance customer retention and strengthen their
brand identity in an intensely competitive environment. The three most noticeable
dimensions of change in intelligent customer service. (1) Intelligent Financial Advisory:
Automatically analyzing spending patterns to provide personalized savings or investment
recommendations tailored to an individual’s risk appetite. (2) Next-Generation Virtual
Assistants and Chatbots: Banks leverage Natural Language Processing (NLP) to
comprehend context and sentiment, resolving complex queries beyond the constraints of
predefined scripts. (3) Context-Aware Marketing: Delivering targeted offers (e.g.,
shopping installment plans) in real-time, precisely when a customer completes a
significant transaction.
Risk management and security
By leveraging AI, banks have demonstrated superior operational power compared
to traditional methods. Particularly in the realm of risk management and security for both
the institution and its customers, AI provides critical support across three dimensions of
financial activity:
Real-time Fraud Prevention: AI scans billions of transactions to detect anomalies
within milliseconds, enabling customers to better monitor and oversee their finances.
Example: Detecting a transaction initiated abroad only five minutes after the customer
has swiped their card in Vietnam.
Anti-Deepfake Protection: Utilizing adversarial algorithms to detect fake faces and
voices during the Electronic Know Your Customer (eKYC) process. This addresses a critical
bottleneck for both banks and customers, as fraudulent schemes are increasingly rampant
in the global financial sector.
Alternative Credit Scoring: When customers apply for credit, instead of solely
evaluating income, AI analyzes shopping behaviors, utility bill payments, and even app
usage patterns. This enables banks to grant credit limits to individuals who cannot provide
traditional proof of financial standing through pay slips. This approach represents a
significant upgrade in the bank's risk management capabilities.
Operational management and automation
By implementing AI, banks minimize human error and optimize operational costs. (1)
Intelligent Document Processing (IDP): Utilizing Optical Character Recognition (OCR)
combined with AI to read, comprehend, and extract data from loan contracts, property
deeds, and invoices within seconds. (2) Predictive Liquidity Management: AI accurately
forecasts the required cash reserves at each ATM or branch for specific times of the year
to optimize capital turnover. (3) Compliance Control: Automatically updating new legal
regulations and scanning the entire system to ensure the bank does not violate any rules
regarding anti-money laundering (AML) or taxation.
Asset and Investment Management
While traditional "Private Banking" services were previously reserved exclusively for
the ultra-wealthy, AI has now made these services accessible to all customers. Robo-
advisors automatically construct investment portfolios (comprising stocks, bonds, and

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