Author(s): Suhas Sushant Das, Ashish Manohar, Rajesh P. Jawajala, Dhanalakshmi K, Mayadevi Jadhav and Dharini Raje Sisodia
The retail banking sector is currently seeing a significant transformation as it incorporates artificial intelligence (AI) technologies to improve client interaction and implement tailored marketing strategies. This abstract presents a comprehensive review of the principal artificial intelligence (AI) applications that are now transforming the retail banking sector. The practice of personalized marketing in the retail banking sector has undergone a transformation from conventional demographic segmentation to a more advanced approach driven by artificial intelligence. This new approach involves segmenting customers based on a wide range of data sources, such as transaction history, online behavior, and individual preferences. Artificial intelligence (AI) algorithms facilitate the development of customized marketing campaigns by banks, which effectively cater to the specific demands and preferences of individual customers. As a result, the utilization of AI algorithms enhances the efficacy of client acquisition and retention endeavors. The utilization of AI-powered recommendation engines is of great significance in the provision of pertinent financial goods and services to consumers. Through the examination of past data and the analysis of real-time interactions, these engines provide customized recommendations, thereby enhancing the banking experience by making it more frictionless and captivating. In addition, chatbots and virtual assistants, which include natural language processing skills, offer continuous customer service by addressing enquiries, facilitating transactions, and providing financial advice. AI-driven virtual agents have the capacity to not only boost client engagement, but also to improve operational efficiency.