2.4 AI in Banking

Banks and mobile money services use AI to keep your money safe and to serve you faster. AI watches transactions in real time to spot fraud, decides who can get a loan, and powers the chatbots that answer your questions.

A decision tree can flag a transaction as normal or suspicious based on its features.

For example, if your Telebirr or CBE account is suddenly used to send a large amount at 3 a.m. from an unusual location, an AI fraud-detection system can flag or block it and send you an alert.

Scenario

Your card is blocked after an unusual large purchase abroad. Why did the bank's AI do this?

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What is a common use of AI in banking?