How UBank advances with AI technology

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Banks have been embracing AI technology at a relatively fast rate, but will be speeding its use up over the coming years. The AI technology is set to play a critical role in the services offered by all banks to their customers and to their administrative processes. Positive customer experiences are very important at all levels of banking and finance. AI technology, with its ability to receive, analyze and compare information, can improve services at every level. 

AI technology is what drives digital banking to offer its customers the same services as classical banks, but more effectively, saving them time and money. Digital banks like UBank have cut expenses because they don’t need to have a physical presence and have cut the waiting time for all their services, especially loans for home purchases and small and medium businesses. 

How has AI technology impacted SME lending? 

Small and medium enterprise lenders are generally on the market for loans that range between $5,000 and $25,000. 

AI technology leverages the data available to it from accounting software to make the credit process easier. Instant access to the information quickly determines the business’s credit risk and its ability to repay the loan in the stipulated time. Processing of SME loans at regular banks usually takes up to 14 days, whereas AI slashes that time to less than 48 hours. 

Besides speeding up the lending process, SMEs are getting flexibility and more attractive rates. They are also finding that digital banks are willing to partner with them as they take the data of their business and credibility into consideration. These small and accessible loans don’t require collateral and allow them to grab business opportunities as they appear. 

Getting answers about home loans

People who are about to purchase their first home have burning questions that need to be answered before they commit to applying for a loan. UBank recently introduced Mia, short for My Interactive Agent. Mia is a sophisticated chatbot that interacts with customers as they fill in their online home loan application. Powered by AI, Mia answers questions in a knowledgeable, intelligent, and fun way instantly, and on any preferred device. 

Chatbots can now understand and respond to thousands of variations to the 200 most common banking questions. 

AI technology and investment strategies

Recent research, commissioned by UBank, found that Australians are more focused on savings than ever before. The research showed that 52% of Australians control their finances better now and are also more financially savvy. 46% of millennials feel that they don’t save enough and are increasingly using budgeting tools to help them plan for their expenses and to make savings goals. They are also harder with themselves when it comes to cutting down on unnecessary spending. 

The financial advice sector has been using AI technology for a while now to offer customers online financial and investment advice. The software available allows for the digital advisor to take financial goals and tolerance for risk into consideration before calculating an investment strategy that will suit the individual. 

How will AI help Australians save money? 

Comparison technology powered by AI and data input can be useful to consumers to make comparisons. They can then offer automatic recommendations and the ability to switch. This technology can be applied in many industries but will also find a significant place with digital banks. Their customers will be able to compare where they will receive better interest rates for their savings accounts, business and home loans. 

AI is a fast learner

Initially, chatbots were not very conversational or flexible. Machine learning and natural language processing is changing all that, and chatbots are now able to understand human emotion and understand their questions. Banking customers are increasingly happier to interact with chatbots rather than wait to speak to someone on a telephone. 

Customer satisfaction and a seamless experience is demanded by the online banking customer. AI and its constant advancements are offering just what they demand. 

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