How Can Banks Embrace Computer Vision Technologies to Effectively Compete?

Computer vision is a term used to describe technology that allows computers to replicate some aspects of human vision, and identify or analyze objects.

This technology is becoming increasingly popular for surveillance and smart camera applications, as well as facial recognition for securing banking transactions.

As financial institutions automate more and more processes, they are turning to computer vision to solve various customer service problems and provide greater security while reducing costs.

It enables banks to enjoy increased efficiency and improved accuracy in identifying customers and approving transactions.

Computer vision can give banks a competitive advantage in the market.

It will enable banking institutions to identify their customers quickly and accurately, which in turn will reduce the chances of fraudulent activity.

In this article, we are going to look at different ways financial institutions can leverage computer vision technologies for more efficiency.

Let’s get started.

1. Enhancing Customer Experience

Digital banking is becoming increasingly popular.

So banks are looking for ways to make the customer experience as seamless and secure as possible. One technology that banks are turning to is computer vision.

Through the use of facial recognition, banks can provide a secure authentication process that is both convenient and reliable. They can use computer vision to quickly and accurately match customers to their existing records and then allow them to access their accounts in no time.

In addition to facial recognition, computer vision is also being used by banks to automate certain document processing tasks.

For example, banks may use computer vision to quickly scan and read forms, documents, and contracts, allowing them to process transactions faster and with more accuracy. This also helps reduce paperwork, cutting down on the time and resources needed to implement certain processes.

Ultimately, computer vision can be used to drastically upgrade the banking experience for customers.

With advanced features such as facial recognition and automated document processing, banks can provide customers with a smoother, more secure experience.

Not only does this improve the customer experience, but it can also help banks reduce costs and save time.

2. Streamlining KYC/AML Processes

In recent years, banks have been looking to computer vision to help simplify and streamline their Know Your Customer (KYC) and Anti-Money Laundering (AML) processes.

By leveraging facial recognition, a bank can rapidly verify a customer's identity without any manual steps.

This ensures that identity verification is up-to-date and secure.

Computer vision is used to automatically verify identity documents, such as passports, driver's licenses, and birth certificates. This eliminates manual document checks, significantly speeding up the process.

Furthermore, customer profiling is automated by monitoring customer profiles across multiple channels. This helps identify trends and suspicious behavior quickly and accurately.

Professional Bank, a financial institution based in Florida, leveraged Vouched.id’s identity verification platform to accelerate their KYC process.

Vouched.id combines facial recognition, document verification, and proprietary AI-powered decisioning tools to reduce the need for manual input, reducing time and cost significantly.

It helped them set in motion a transformative digital onboarding experience, where clients can now open a personal checking account online in just a few minutes, saving a lot of time and hassle.

3. Automating Repetitive Tasks

Banks can use computer vision to automate time-consuming, manual, and repetitive tasks such as data entry, document sorting, and customer segmentation.

Data entry is one of the classic automation tasks.

When tasked with entering data from paper or electronic documents, banks can use computer vision to rapidly scan the documents and input the relevant data into the system.

Document sorting is another task that can eat up a lot of time, but computer vision can help alleviate the burden.

By running documents through an automated process and feeding the scanned content into an AI-driven system, banks can quickly and accurately sort documents based on predefined criteria.

Another area in computer vision that can shine is when it comes to customer segmentation.

By incorporating computer vision into their customer segmentation processes, banks can accurately and automatically group customers according to their needs. The AI can analyze customer data, including transaction records, demographic data, and behavioral patterns, to accurately segment customers.

In summary, computer vision can be a powerful tool for banks that are looking to automate repetitive and time-consuming tasks.

4. Reducing Fraudulent Transactions

Banks are turning to computer vision technology to combat fraud and automate customer risk assessment processes.

Computer vision works by analyzing an image or video of a customer and then attempting to detect patterns of fraud. It can do this by looking for discrepancies in behavior compared to the customer’s past transactions.

For example, a customer that makes large purchases frequently could be flagged as potentially fraudulent.

Using computer vision, banks can also automate transaction monitoring.

By having computer vision algorithms scan through the millions of transactions a bank processes, the system can identify and alert the bank to any suspicious activity. This kind of automated fraud detection is becoming increasingly important as banks are currently facing a rise in fraud attempts.

Computer vision can also help banks automate customer risk assessment.

By using computer vision to analyze customers’ activity, banks can create a better picture of a customer’s risk profile.

Leveraging computer vision enables banks to gain a competitive edge by automating these processes. This helps cut costs since the bank no longer has to constantly, manually review transactions or assess customer risk.

5. Implementing Payment Recognition

By using computer vision to automatically process payments, banks can save time and resources on traditional manual payment verification processes.

How does this work?

Banks can configure their systems to read scanned images or videos of payment documents such as receipts, invoices, or promissory notes. The system can automatically authenticate signatures or read the information on the documents and compare it with existing data.

This helps the bank recognize if the payment is correct and that it is from an authentic source.

It can also be used to authenticate the payer.

This can involve facial recognition, fingerprint scans, voice authentication, or other techniques. The system can also detect patterns in the payment data to quickly recognize suspicious or fraudulent transactions.

This allows banks to take proactive steps to protect their clients from fraud.

In addition to saving time and resources, computer vision-driven payment recognition also gives banks a competitive edge in the payment space.

It helps minimize processing times while eliminating potential fraud. This enables banks to gain the trust of customers and provide an enhanced level of service.

Conclusion

Computer vision is already proving its value in the banking industry.

Embracing AI technology is proving to be a great way to increase accuracy and speed in certain tasks. Banks can now gain a competitive advantage by using computer vision as a means of automated fraud detection.

It can also help with streamlining customer identification processes, and quickly and accurately verifying documents. Moreover, banks are now looking beyond the basics to enhance user experience with interactive and intelligent systems.

However, most computer vision technologies are still quite young.

So further research into computer vision capabilities has the potential to reap great rewards. For instance, research into natural language processing capabilities could enable banks to use voice recognition instead of manual typing.

Overall, computer vision is an important and rapidly developing technology with potential for the banking industry.

By examining current trends and researching the capabilities of these technologies, banks can create a competitive advantage and increase efficiency.