If it feels like artificial intelligence is everywhere these days, you’re not wrong — and banking is no exception. According to an EY survey, a whopping 99% of financial services leaders say their organizations are already using AI in some form. And when it comes to generative AI specifically? Every single respondent said they’re either using it or planning to.
So what’s driving this rapid adoption? Financial institutions are under pressure to modernize their operations, personalize customer experiences and simplify customer interactions. Facing rising customer expectations and competition from modern fintechs, banks are turning to AI as a powerful tool to help them keep up — and get ahead.
From AI chatbots that answer customer questions to AI algorithms that detect fraud, the latest advancements in artificial intelligence are reshaping how banks operate. Let’s take a look at some of the major AI use cases in banking today.
1. Enabling 24/7 Customer Support
Today’s customers expect service on their schedule, not the bank’s. It’s why the banking industry has embraced AI-powered chatbots and virtual assistants to deliver real-time, round-the-clock customer service.
Thanks to advanced natural language processing (NLP), virtual assistants can understand everyday human language and respond in real time with accurate, conversational replies. Whether they need to request a new card or have questions about account types late at night, virtual assistants are available 24/7 to help.
These aren’t your typical chatbots with pre-written replies, either. For example, ING hears from 85,000 customers every week in the Netherlands. While their classic chatbot resolved about 45% of inquiries, their new gen AI chatbot improved the experience significantly, helping 20% more customers avoid long wait times in just 7 weeks by delivering more detailed and tailored responses.
2. Improving Fraud Detection and Risk Management
From loan application scams to money laundering and other cybersecurity threats, fraudulent activity in the banking sector is constantly evolving. In response, banks are turning to more sophisticated detection techniques, often involving artificial intelligence.
AI-based fraud detection systems don’t just flag suspicious activity — they learn from it. Traditional methods rely on static rules and manual reviews to identify potential risks, but AI models are dynamic. They’re faster at processing vast amounts of data, can flag anomalies in real time and continuously adapt to new patterns. AI can even be used to build predictive analytics models for fraud prevention and mitigation.
This evolution doesn’t just protect banks but also improves the customer experience. In the financial sector, false positives can be a major pain point, causing legitimate transactions to be flagged and customers to be inconvenienced. But AI solutions, powered by complex machine learning algorithms, are constantly learning from new datasets. As a result, they’re getting better at distinguishing between real threats and normal customer behavior.
According to a Teradata case study, AI can reduce false positives by 60%, with the potential to reach up to 80%. That means customers face fewer interruptions while trusting that their transactions are secure.
3. Delivering Hyper-Personalized Banking Experiences
When it comes to banking operations, one-size-fits-all just doesn’t cut it. Consumers expect their banks to know not just who they are but what they need. In fact, 72% of consumers rate personalization as “highly important” in today’s financial services landscape. AI tools help make that possible at scale.
Post on
By tapping into customer data — think transaction history, financial goals, spending patterns and even lifestyle cues — banks can now offer hyper-personalized experiences to each individual. Through advanced data analysis and automation, AI technology identifies patterns and opportunities, allowing providers to deliver tailored interactions, such as suggesting a credit card with perks aligned with a client’s travel habits or sending financial advice based on recent spending behavior.
This approach improves the decision-making process, both for banks and their customers. By understanding past actions, banks can better predict future needs. That leads to more relevant products, increased customer satisfaction and greater consumer trust.
Take refinancing, for example. With an AI algorithm, you could quickly identify customers who are most likely to welcome a refinancing offer and avoid targeting those who have already paid off their loans. From there, you can deliver a personalized, data-driven video (like the one below) that greets the customer by name, breaks down the specific benefits of refinancing and outlines the next steps. It’s a smarter approach that saves time and boosts response rates.
Using AI for personalization makes it easier for banks to connect with customers in a way that actually feels helpful and relevant, making banking services simpler and more personal for everyone.
4. Streamlining Marketing Initiatives
Another AI application in banking is content creation. Instead of spending days or even weeks producing new campaigns from scratch, banks can now use AI-powered tools, like our AI video creator, Lucas, to generate content with a simple prompt.
The benefits of AI video go far beyond speed. According to the McKinsey Global Institute, AI could add between $200 billion and $340 billion in annual value to the global banking sector, largely by boosting productivity and freeing up teams to focus on higher-value tasks.
Case in point: Lucas can instantly turn documents and webpages into videos. They’re polished and on-brand but take only minutes to create. This dramatically cuts down on time-consuming manual work and lets teams spend more time on important strategy demands.
Let’s say you’ve got a new credit card offer to promote. Rather than crafting an entire video from the ground up, you can upload a product page or document and have Lucas automatically generate a high-quality video that highlights key selling points and stays on-brand.
You can even add interactivity to further boost customer engagement. Take the mortgage calculator below. Users can enter their name, home value, loan amount, credit score and loan term and instantly receive a customized video showing their options. Try it yourself by clicking on the lightning bolt in the player.
While that particular video wasn’t made with AI, you could absolutely use Lucas to produce similar creative in minutes. And it’s not just for your marketing team. Anyone, from sales to customer support, can use Lucas to create dynamic videos.
5. Improving Customer Understanding and Satisfaction
Beyond ads or promotions, AI video can also be used to make your communication clearer for your customers. Banks often struggle to explain products, policies or account terms in a way that’s both easy to understand and engaging. Dense text documents are common, but most customers’ eyes glaze over as they read or they ignore them altogether.
What if, instead, they received a video that made complex information easy to grasp? Video is uniquely effective at breaking down complicated concepts, especially when it’s dynamic, concise and tailored to the individual viewer.
The personalized onboarding video below is a great example of what this might look like. It warmly greets the client by name and sets them up for success by walking them through their new business account, including specific amounts and dates that pertain to them.
With Lucas’ document-to-video capabilities, creating similar videos is now easier than ever. What once required multiple teams and days of workflow coordination can now happen in a fraction of the time.
In fact, consumers are twice as likely to prefer receiving an AI-generated video from a document over the document itself. It’s a clearer, more human way to share important information and strengthen banking loyalty.
6. Helping Banks Stay Compliant
From staying ahead of new regulatory requirements to ensuring airtight data privacy practices, regulatory compliance in the banking world is far from simple. Now, though, AI-based solutions are being used to lighten the load. While they shouldn’t replace human compliance experts, they can be used to streamline how banks manage and adapt to complex regulations.
One valuable development in this space is the use of large language models (LLMs). These AI systems are trained on vast amounts of text data, allowing them to understand and generate human-like language.
In a compliance setting, LLMs can parse dense legal documents, analyze regulatory updates and help interpret complex policy language. This supports faster, more informed decision-making with less back-and-forth, ultimately improving operational efficiency across the board.
AI-driven tools are also helping banks streamline Know Your Customer (KYC) procedures — a key part of compliance that involves customer identity verification and risk assessment. AI can extract relevant data from unstructured sources and speed up verification while improving accuracy and consistency.
Ultimately, by automating the most repetitive aspects of compliance, banks can free up their human experts to focus on more sensitive, high-stakes matters.
See What AI Video Can Do for Your Bank
From personalized experiences to streamlined compliance, AI is reshaping the banking sector in big ways. And when you pair it with the power of video, the impact is amplified.
With Idomoo’s Next Generation Video Platform and our enterprise AI solution, you can create high-quality, on-brand videos faster than ever. Lucas turns ideas into fully produced videos in minutes — no tech skills required. And of course, our platform follows robust security protocols to protect your customers’ data. We’re ISO 27001 certified, SOC 2 Type 2 compliant, regularly conduct security audits and more.
Ready to see what’s possible? Learn more about how we can help you level up your video strategy.
