Businesses always look for new ways to be better. They strive to find greater operating efficiencies, cut expenses and grow.
To achieve these efficiencies, businesses are increasingly turning to artificial intelligence, or AI. Often referred to as machine learning, AI is software that enables a computer, robot or device to think for itself, to essentially simulate a human brain. When this happens, the machine learns new skills, adapts to changing environments and solves problems.
AI and the banking industry
Some suggest that AI can underwrite a member loan application better than a human. The argument: Computers can use extensive formulas to uncover hidden behavioral patterns and predict whether a person is a good risk or not. Your credit score, spending habits and online searches are just a few of the data points used in AI.
To suggest a computer can think like a human seems far-fetched, for some. However, financial institutions are using AI to help make better decisions. I have mixed feelings about this. I see the value of smarter computers helping the Credit Union with more accurate forecasting, economic models and risk measurements. If AI gives us an edge with the Credit Union’s technical operations, it’s worth exploration.
There’s more to your story
On the flip side, there are some interactions I don’t believe should be left solely to a computer. Call me old-fashioned, but I want to know that a living, breathing human is thinking about me when I have a financial need.
While computers can compare your debt load, credit rating and payment history to other members, there’s more to the equation. You are unique. This means your Credit Union should listen to your story and assist you with the best course of action to fit you.
From a business standpoint, this may not be the most efficient way to run a financial institution. It is, however, the most human.