How Blockchain, Chatbots and AI Could Affect Banking UX Design in 2018

Artificial intelligence (AI), Chatbots and Blockchain are some of the key technologies which will disrupt the financial services industry in the coming days.

Artificial Intelligence

AI is a collection of machine learning, natural language processing, and cognitive computing designed for scale. This scalability is exciting, as it can create exponential growth and deliver today’s required personalized communications.

Blockchain

Blockchain is a public ledger for all cryptocurrencies including bitcoin. In Blockchain, a block records some or all recent transactions. Once these transactions are successfully completed, they are registered into a permanent database, which is termed as Blockchain. For every block, a cryptographic hash is generated that’s responsible for maintaining the integrity of data and transaction.

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The Digital Evolution of Financial Services

Digital technologies like blockchain, AI, and chatbots, could act as saviors for the financial services industry. Financial services are rapidly becoming a technology-driven sector, which is evident by the amount of money they are spending on buying software.

IDC expects this figure to grow more than five percent over 2016’s spending

The forecast of $2.7 trillion in worldwide IT spending by 2020 is led by the financial services industry.

Banks and financial services firms can either build the chatbot app themselves or partner with FinTech to do so.

Potential impacts of financial services’ digital evolution include:

 Artificial Intelligence will Empower Fintech Solutions

AI has huge potential to harness almost every sector with its benefits including Fintech. By automating various tasks in banks and other financial institutions, AI will make humans free for more efficient and productive tasks.

“30% of large financial institutions are investing in Artificial Intelligence (AI), according to the Global Fintech Report 2017 issued by PWC.”

Providing the best of customer service is every bank’s target today. And thus onboarding and a know-your-customer process are on the priority list. In this context, smart chatbots (one of the applications of AI) could be set for interacting with the customers, addressing to their queries, or even conduct financial transactions. In the future banking institutions will use AI for UX Design app development.

Some of the best use cases for chatbots are as follows :

1) Chatbots provide quick answers to clients, leading to happy customers.

2) Bots help to monitor the actions taken during financial transactions like swiping a card, withdrawal of money, payments, etc.This keeps the customers informed about the activities in their bank accounts and prevents incidences of frauds and malpractices.

3) Bots can function as marketing tools. They push the services and products that the banks offer to the customers who may not be aware that such services exist.

4) Bots also help in gathering and collecting information. Banks can use this information to make more focused campaigns and to increase their business.


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 Fintech Solutions will Ride the Blockchain Wave

According to PWC Fintech report 2017, nearly 77% of financial services companies are expected to adopt Blockchain as a part of in-production system.”

By 2020, the banking industry will derive $1B of business value from the use of blockchain-based cryptocurrencies.We all know that more and more cryptocurrencies are getting legalized and today there are more than 900 cryptocurrencies on the market. The endorsement of cryptocurrencies by banking industry could open doors to other industries.

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The following benefits of blockchain are making it popular not just among the financial institutions, but across many sectors:

1) Distributed ledger: Blockchain involves a public ledger which is available to all parties involved in the transaction. This means that the moment any transaction is completed, it is entered into blockchain in blocks and a copy of the same is available to all the parties involved.

2) Minimize role of intermediaries (central authority/third party): Since blockchain works on the principle of peer-to-peer transactions, the role of any intermediary (central authority or clearing house) is minimized, resulting in faster and smooth transaction processing.

3) Reduced transaction cost: Blockchain is built on the concept of sharing information and building a consensus among all the involved parties, which helps save on reconciliation costs between banks and losses because of documentary frauds.

4) Traceability of transaction: Blockchain has the capability to trace the entire chain for a particular transaction which helps control fraud and black money.

5) KYC and AML process: Banks can use blockchain to maintain KYC details of customers, which can be leveraged across different lines of business within the bank along with ensuring compliance of AML.

6)Trade Finance: Blockchain has huge potential in a trade finance transaction encompassing entire supply chain which involves parties like importer, exporter, importer and exporter banks, customs, shipping line, freight forwarder, and insurer.

7) Commercial lending and syndicated loans: Commercial lending involves a lot of document exchange between customer, bank and enabling parties like lawyers and valuation firms. During loan processing, various departments in the bank also need to access these documents which involves front, mid and back office along with legal and compliance.

Through blockchain, this entire process can be managed efficiently and effectively, streamlining loan document processing.

The Future of Fintech

A lot of legislative changes are encouraging Fintech app development. In Europe, the Payment Service Directive (PSD2), is expected to be in force at the beginning of 2018. It will allow clients to authorize the access of third parties to their bank accounts for payments. This will lead to a universal compliance standard, secure payments and more data available to clients.

Similarly, the financial sector is plagued by delays in clearance and settlement. Blockchain technology is supposed to solve this concern and increase the transaction speed.

There is a clear advancement towards using more technology in the financial sector not only to increase productivity but to create a more personal relationship with the customer, more lucrative portfolios, and even a decentralized money system. Yet, we are still far away from the day when finance professionals and related people will be out of their jobs. Right now, AI and blockchain technologies are at the budding stage and are expected to give a major boost to the financial industry in the coming years.

 

Will Web Designers Be Replaced by Artificial Intelligence?

Artificial intelligence is something that brings a lot of excitement. We see it everywhere; it’s used in chatbots, in banks, in everything remotely-related to management. We even have AI that translates texts for us and manages our content.

Still, designing is about arts, creativity. You don’t imagine a machine being ‘artsy.’ It needs to feel the design that is about to represent your business. Or at least, that’s how it should be, because recently, AI has become even smarter. The more it ‘sees,’ the more it learns. And with pictures galore available online, it’s not that difficult to imagine a computer coming up with a nice design.  So what is the future for a web designer, let’s discuss this.

What is Artificial Intelligence?

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Have you ever watched The Jetsons when you were a child and marveled at how human-like Rosie the robot maid was? Yes, that’s what AI looks like. In that futuristic kind of environment, it was difficult for us to imagine that we would actually have software that can think for itself.

Basically, AI is a fairly simple concept. While it may not necessarily be a robot with arms and legs that goes “beep beep” all the time, it’s still a machine that can complete duties in a smart way, without having to rely on human intervention.

AI is based on machine learning, because yes, machines can learn. Once the software is exposed to new data, it will remember it and will eventually apply it to future circumstances that will ask for that data.

Traditional computers will function on a program that has been preset. However, machine learning will use certain algorithms to learn on-the-go, and you’ll only have to show it once. The machine will remember.

Imagine showing a human a couple zillion pictures and tell him to remember them from one day to another. It’s impossible. On the other hand, AI can run through all those pictures and learn from them, without forgetting what they learned in the next couple of hours.

How Will AI Affect Designers?

If you’re a web designer, don’t worry. Rather than being completely replaced by AI, it’s more like you will be helped by it. Generally speaking, AI will just help the designer be smarter, just like what happened with most of the other fields that use artificial intelligence. AI is simply an opportunity to make things easier for us.

A machine in the designing world will allow you to make quicker decisions, which will free up your time from doing routine work, time that you can focus on doing other stuff of more importance.

Here are some benefits that you’ll reap with the introduction of AI into the designing world.

1. Designers will no longer start from scratch

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The most annoying thing a designer has to do is stare at a blank “canvas,” wondering how they should start because we all know that starting the project is actually the most difficult part.

AI, on the other hand, will use algorithms to suggest what kind of canvas you can use as a “starting point.” All that will be left for you to do is customize it and make it look unique. Personalize it by adding the “feeling.” Plus, since the base will be there, there won’t be a need for lost time on testing sessions.

When it comes to designing websites, for example, there are website builder platforms nowadays that already use AI. Bookmark Website Builder, for example, is AI-driven. You sign up, put in your company name (which you can change later), your industry, and AiDA will come up with a complete website for you within minutes.

This starting point will make it so much easier for you; the Bookmark’s AI has chosen that design to fit your type of business and location, saving you a lot of time.

2.  It will be easier to create logos

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Creating the logo for a business is the most crucial part of getting the success going, but at the same time, it’s also the most time-consuming part of everything. It always comes with rendering, back-and-forth bickering with your clients, and overall a lot of nerves wrecked in the process.

AI will make things easier by suggesting logo ideas for a certain kind of business. It will take into consideration the name (wordplay), the type of industry, the aim of the business, and so on. All you will have to do is pick the one that appeals the most and edit it according to your preferences.

Logojoy.com, for example, is an AI-driven logo making company. You choose what style you want, pick a color, and then wait for the Logo Joy AI to generate logo ideas for you to choose from. You can then easily edit the logos and refine it based on your preferences.

3.  It will be easier to choose a color palette

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If you choose the wrong color palette for the type of business that you are running, it’s very likely that you’ll lose views because of that.

Artificial intelligence will take your logo into consideration, as well as the type of business that you are running, and will suggest a color palette to you. This will save you a lot of trouble in the trial-and-error process.

4.   It considers the user’s journey

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Most of the time, a designer will consider the “art” part of the project to make a website look good. They will create what they believe looks good, where they believe it does. It’s more the personal preference of a designer.

On the other hand, AI will read through customer journeys and understand what looks more appealing to them rather than to you. This will allow you to make a more appropriate design that will improve the engagement, and therefore, increase the conversion.

5.  It will help with ad placement

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Once more, ads also need to go through trial-and-error before settling on a model and placement. Should you go with the red button or the blue one? What placement is more likely to get clicks? AI will work by analyzing the behavior of the thousands of viewers online, and determine which one is most likely to be successful.

Many people seem to believe that web design is dead and that they will lose their jobs to the AI. In truth, it just means that they got a helper. AI will only suggest things to you. The final choice will be left for you to make.

It’s really hard to say how much AI will influence the world of design in the future. This collaboration still has its blind spots, and while the software is rapidly learning, you still can’t let it do the job 100% by itself.

However, companies like Bookmark and Logo Joy already started using artificial intelligence for web and logo designs, which means that we are one step closer to the future.

Will AI Put Designers Out Of A Job?

Artificial Intelligence has seen a huge surge in popularity with the recent success of AlphaGo against Lee Sedol. If Google Trends is accurate, public interest in the subject of Artificial Intelligence has grown by nearly 100% since 2012. Other technological marvels, including self-driving cars, advances in voice recognition software and pattern recognition have shown us … Read more