AI Revolutionises Banking Through Data Analysis and Fraud Prevention

Artificial intelligence (AI) is playing a significant role in the banking sector by enhancing data analysis, predicting trends, and mitigating fraud risks, according to Newsonair. AI-powered tools enable banks to process vast datasets in real time, identifying patterns that inform strategic decisions and customer personalisation.
Machine learning algorithms forecast market trends, credit risks, and customer behaviour with unprecedented accuracy, driving proactive lending and investment strategies. In fraud detection, AI employs anomaly detection and behavioural analytics to flag suspicious transactions instantly, reducing losses from cyber threats and deepfakes.
India’s banks are scaling AI across retail lending, compliance, and customer service; State Bank of India and HDFC Bank use it for fraud monitoring and underwriting. Generative AI chatbots handle queries 24/7, while predictive models cut false positives by 90% at institutions like DBS Bank.
RBI reports generative AI could boost efficiency by 46%, expanding credit access via alternative scoring. Challenges include ethical AI use and data privacy, but benefits, like 30% fraud reduction and faster investigations, dominate.
AI positions banking for inclusive growth amid the rise of digital fraud.