Why AI is the Driving Force Behind Financial Sector’s Intelligent Makeover

The financial industry is undergoing a radical shift that’s being driven by mounting regulation and compliance pressures, changing business models, new competition from FinTechs, and disruptive technologies. Introducing innovative technologies such as Artificial Intelligence(AI) can help the financial sector to automate various processes, manage financial advisory services, and reduce the cost of various business expenses. Although the digital transformation of enterprises may seem challenging, it is not impossible. One needs to embrace the transformation with a little patience and lots of learning to survive and thrive in the current landscape. Let’s discuss in detail how AI-enabled analytics can help the financial sector.

Financial sector uses crucial customer data that needs to be handled carefully and without error. Humans can be inaccurate while doing calculations and making decisions. However, we’ve built technology that is almost always accurate and progressively faster in making appropriate decisions. AI enables thorough research and understanding of concepts and continued learning of vast volumes of data. With AI, tasks that require a high degree of analytical thinking can be accomplished quickly.

Automation

Financial sector uses crucial customer data that needs to be handled carefully and without error. Humans can be inaccurate while doing calculations and making decisions. However, we’ve built technology that is almost always accurate and progressively faster in making appropriate decisions. AI enables thorough research and understanding of concepts and continued learning of vast volumes of data. With AI, tasks that require a high degree of analytical thinking can be accomplished quickly.

 

AI-driven Customer Assistance Banking

Chatbots and voice bots have made it extremely easy to assist customers round the clock. Now customers can use banking services over voice command instead of a touchscreen. With the use of natural language processing, financial institutions can easily connect with their users, answer queries, and find information effortlessly. Barclays is one such financial major that uses Apple iPhone’s personal assistant, Siri for quick payments and money transfers.

 

Wealth Management for Clients

Most enterprises and heavyweight financial companies are acquiring start-ups with the motive to analyze the massive amounts of unstructured data automatically. The banking sector that makes the most use of AI is wealth management. AI automates various financial processes of wealth management to offer tax-optimized and personalized investment experiences to their clients. The experts here are focusing on building AI-powered analytical engines which can detect behavioral patterns and provide the best services to their high-net-worth clients.

 

Cost-effective AI Financial Services

The automation in the finance industry has reduced the cost of overall processes to a great extent. AI not only draws customers’ attention and showcases the innovative financial services through various digital servicing channels but also make the services, customer-centric, automated, reliable, and cost-effective for the customers as well as the institutions.

 

Fraud Detection And Management

Banks and financial institutions have a huge responsibility when it comes to handling customers’ financial data. Every business focuses on eliminating the threats and frauds associated with it. AI is apt for the detection of such frauds that can disturb the entire financial firm. With AI, institutions can easily track unusual behaviors of transactions, and is also capable of learning and making sophisticated decisions similar to humans.

For a more detailed outlook on fraud prevention, read our blog on How Analytics Can Protect Insurers from Fraud

 

Financial Advisory Services

Robo advisors are reinventing the financial sector. When the pressure increases on financial institutions to reduce their commission rates on individual investments, machines are capable of working for a single down payment. Another feature of AI is bionic advisory which means the technology combines human insights and machine calculations together to provide more efficient and useful recommendations.

To know more about how enterprises can become the pillars of a digitized economy by using relevant information to create impact, read our blog on Financial Analytics.

 

Trading

The banking and finance sector is always dependent on computers and data scientists to determine the future patterns of the market. Trading and investment market highly depends on the ability to predict future market trends and AI simplifies the task by fetching vast amounts of data in a short while. Machines can be trained to predict, observe, and compare the past data with the current scenario. Not only this, but AI can also suggest portfolio solution to trading and investment companies so that they can easily make well-informed decisions when it comes to meeting each client’s demand.

 

Credit Scoring

Credit scoring is basically an automated solution used to determine whether a pending loan request has sufficient solvency guarantees or not. AI takes the credit scoring to an entirely different level. It allows Big Data usage, enhances the speed of the system with a combination of algorithms, and offers greater accuracy due to automation.

The Future

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Since most AI frameworks are used on existing systems, there is no need to set up the entire AI implementation from scratch. Due to its vast development phases, AI gives various opportunities to talented candidates to learn the patterns of the financial market, help their collaborative company with their skills, and brighten their own future. On the other hand, it is advisable for the financial institutions to hire Artificial Intelligence Engineers who know enough about the technology and the way it works, that they can get started on transformational outcomes at the earliest. Once AI is implemented, it keeps your financial business up-to-date and ready-to-use. This is where AI companies come into the picture. With AI-powered accelerators that run on advanced algorithmic models, BRIDGEi2i helps financial services companies with risk management solutions by leveraging the power of AI and data science to help improve sales performance, achieve better customer experience and have complete visibility on fraud detection and regulatory compliance.

Author: Prabhash Bachhuwan

Author BIO:

Author Bio: A writer by day and a reader by night, Prabhash Bachhuwan is a content marketer who is an active contributor to Mettl’s blog.

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