What if banks had an intelligent assistant that not only detects anomalies in real-time but also predicts potential issues before they even occur. Well, AIOps has made that reality today. AIOps in banking is a perfect example of technology blending with financial services to redefine operational excellence and customer experiences.
From bolstering security measures to reducing banking costs, AIOps offers several game changing benefits that address challenges faced by the BFSI sector for a long time. In this blog, we dive into five such benefits of AIOps in banking that are truly transforming the industry.
What is AIOps and How is it Used in Banking?
AIOps stands for Artificial Intelligence for IT Operation and it’s a practice of using artificial intelligence and machine learning technologies to improve the management and performance of the entire IT system operations.
It involves various operations like automating tasks, analyzing data, and providing actionable insights which ultimately helps to improve efficiency, reliability, and responsiveness in complex IT environments.
We understood what AIOps is, now let’s see how banks are using it.
Banks are using AIOps for several tasks like:
- Analyze vast amounts of data
- Detect anomalies
- Proactively address issues
This helps banks to ensure smooth and secure operations.
Not only this, but also AIOps in banking provide other benefits like:
- Real-time insights for decision-making
- Helping banks meet regulatory requirements
- Ensure service assurance
These benefits result in faster mean time to resolution (MTTR) and minimized downtime, making AIOps in banking a gamechanger in the sector.
Top 5 Benefits of AIOps in Banking
1. AIOps Boosts Operational Efficiency of Banks
AIOps can not only augment but also replace several IT operations processes in banking. It builds on Automation of IT processes (ITPA) by combining AI and ML with big data.
AIOps automation ensures precise and prompt alerts to potential issues by sending targeted notifications for specific system failures. It goes beyond diagnosis by suggesting solutions to technical issues. It also offers insights spanning both past and future occurrences.
Thus, AIOps boosts the operational efficiency of banks by not only identifying problems but also taking proactive steps to resolve them.
2. AIOps Enhances Customer Experience
Customer experience is becoming a top priority for banks. This is clear from a survey by Accenture where 74% of bank operations leaders expressed that customer experience is their top strategic priority.
However, to deliver this, the fraud department needs assistance in the form of real-time access to transaction data. So, it can build powerful predictive models and proactive solutions.
This can ultimately help in spotting outliers that might act as a signal to any suspicious activity.
AIOps shines in both these cases by providing end-to-end visibility of the bank’s infrastructure.
It helps by:
- Reducing noise in the data
- Breaking down silos
- Simplifying root cause analysis
AIOps prevents customer-impacting downtime by quickly identifying the problems and analyzing their root cause.
This results in:
- Improved services assurance
- Decreased mean time to remediation (MTTR)
All these factors cumulatively result in happy customers.
3. AIOps for Data Governance & Management
Data governance and management is crucial in financial services to ensure privacy, accuracy, and regulatory compliance. AIOps uses data governance frameworks for securely managing sensitive customer information. It also profiles and catalogs data automatically. It uses six dimensions of data quality to assess the quality of the data.
These six dimensions are:
On top of that, AIOps enables you to create a “trust index” which would send trigger alerts to the concerned parties as soon as any data falls outside a specific set of indicators.
4. AIOps Reduces Banking Costs
AIOps significantly lowers banking expenses through the automation of routine tasks and the efficient resolution of common issues. By automating these repetitive tasks, AIOps liberates IT professionals from time-consuming responsibilities, enabling them to concentrate on more intricate challenges that demand their expertise and innovative problem-solving abilities.
This cost reduction entails several advantages, including:
- Improved management of IT infrastructure resources
- Optimal allocation of resources
It also involves enhanced visibility into infrastructure activities that aids in curbing sprawl, improved capacity planning and forecasting to minimize infrastructure expenditure, and a decrease in downtime.
Thus, all the benefits help in mitigating the financial consequences of business service interruptions.
5. AIOps Helps Managing Risks
Security and safety are non-negotiable in banking. And to ensure this, risk management plays a major role.
It helps banks to create plans to prevent issues like:
- Unauthorized access
- Technical glitches
- Fraudulent activities
Here’s how AIOps helps banks to enhance risk management.
AIOps analyzes entire data within the bank’s IT infrastructure to identify unusual activities if there are any. It’s similar to an intelligent alarm system that notifies you every time something goes wrong.
Counter Fraudulent Activities
AIOps doesn’t stop at just notifying the unusual activities. It also has the ability to halt actions if it involves any fraudulent activities.
AIOps plays a crucial role in identifying minor issues within and addressing them before they shape up to become a major problem, thus preventing escalations.
Enhanced Operational Efficiency
AIOps helps banks to optimize their processes and offer smoother banking experience to their customers by:
- Processing transactions swiftly
- Minimizing errors