Karshi branch of tashkent university of information technologies named after mukhammad al-khorezmi

Picture 1.1. Number of robo-advisor users worldwide 
 
Application of AI in banking and finance 
Cybersecurity and Fraud detection 
Customer experience 
Chatbots 
Risk management 
Loan and credit decisions 
Regulatory compliance 
Tracking market trends 
Predictive analytics 
Data collection and analysis 
Process automation 
Table 1.1. Application of AI in banking and finance 
Examples of AI in Banking 
Firstly, let’s briefly brush up on our understanding of the concept of Artificial 
Intelligence. Artificial Intelligence, in layman’s terms, is basically the simulation or 
imitation of human intelligence to use it in machines and program them to think in terms 
of humans and to mimic their actions. [3] 
The term can also be applied to define any machine or software which manifests 
traits that are associated with the human mind. The AI algorithms can tackle learning, 
perception, problem-solving, language-understanding, and logical reasoning. 

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Generally being early embracers of most new technologies, Banks leverage AI 
particularly in their front office (conversational banking), middle office (anti-fraud), 
and back-office (underwriting). 
Picture 1.2:AI Applications in financial services [11] 
Chatbot 
We’ve all come into contact with Chatbots at some stage or the other such as while 
accessing e-commerce websites, while reaching out to customer support or while 
booking hotels or flights for travel. 
Chatbots are AI-enabled conversational interfaces. They can handle compelling 
conversations on behalf of the bank with lots of consumers, at a fraction of the cost. 
They own the potential of bolstering the bank’s consumer experience and its 
convenience. 
With people no longer holding the time and patience to be physically present at the 
bank for all exercises and additionally in cases where the banks are closed, the chatbots 

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step in to serve as the saviors. Their 24x7 availability and efficient customer service 
make them an excellent apparatus for the sector. 
Chatbots also assist customers in seeking their transaction details and all additional 
services that they are eligible to receive. They are programmed to comprehend the 
customer’s requirements and offer them the appropriate response.[3] 
An example of a popular AI Chatbot is virtual financial assistant Erica, introduced 
by Bank of America. Erica plays a crucial role in fulfilling the bank’s customer service 
requirements through various ways, be it by sending notifications to customers, 
providing balance data, sharing money-saving suggestions, supplying credit report 
updates, facilitating bill payments, and helping customers with simple transactions, etc. 
Table 1.2. Benefits of Chatbots in Banking 
Benefits of Chatbots in Banking 
FUNCTIONALITY 
IMPROVEMENT 
TIME SAVING 
SERVICE 
FLEXIBILITY 
COST 
REDUCTION, 
SALES INCREASE 
EFFICIENCY 
A chatbot can expand 
the functionality of your 
homepage. For example, 
through the personalized 
FAQ that allows users to 
ask questions “personally” 
instead of searching for the 
answer on the website. 
Targeted search 
for answers enables 
significant 
time 
savings for users 
and, as a result, 
improves 
your 
services. 
A chatbot is 
always available, 
day and night, on 
weekdays 
and 
public holidays 
A chatbot is a 
long-term investment. 
Technical automation 
saves costs for extra 
retail branches and 
staff. 
Banking 
Messenger Bots are so 
easy to reach. User 
only needs to open 
preferred messenger 
and the text the 
problem. Bot will 
handle the rest. 
The technology 
improves 
your 
business efficiency, 
as it enables to 
process 
a 
big 
amount of customer 
requests 
simultaneously 
The chatbot’s capabilities have recently been expanded to help clients in astute 
financial decision making, by supplying them with personalized and proactive insights. 
BBVA consumers in many countries such as in Spain nowadays have access to a 
latest feature that permanently simplifies mobile-to-mobile money transfers. The 

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transfers are completely secure and do not demand consumers to utilize BBVA’s mobile 
banking application. Both Android and iOS users can send money via BBVA’s 
“chatbots” on instant messaging apps like Facebook Messenger and Telegram. And 
those using the iOS operating system (iPhone) will also be able to do so with the voice 
assistant, Siri. All this has been made possible thanks to an evolution of the Bizum 
system, which enables users to send money among cell phones with the applications of 
the vital Spanish banks. With this latest feature, BBVA takes an additional step forward 
in the innovation of its mobile banking, by optimizing the functionality of its Chatbot 
service. Customers can send money on Facebook Messenger and Telegram – a couple 
of the most famous instant messaging services. 
BBVA is already a pioneer among Spanish banks in the use of chatbots. Earlier this 
year, it launched Chatbot, allowing customers to perform basic transactions, such as 
checking their account balances, IBAN number or the location of the closest ATMs. 
Now, they can also use this feature to send money. At the same time, BBVA launched 
the Cashup feature, which lets users send money to anyone in their contacts without 
having to leave the instant messaging app (WhatsApp, Telegram, Hangouts or 
Messenger).