Artificial intelligence has tremendously changed our conventional lifestyle with empowering smart mobile apps and websites that eases our life for good. Whether it is an IT industry or finance sector, AI has transformed the way we deployed technology for a specific purpose.
” With more room to user engagement and user experience, it won’t be wrong to say that artificial intelligence is the future of every industry.”
It is said that the finance industry has benefitted the most from Artificial intelligence. Machine learning, Chatbots, Cognitive computing, Personal Assistant are all peripherals of Al, which are extensively used in the finance industry.
Artificial intelligence has gained popularity owing to cloud services, big data, and hyper processing systems. Al is abundantly used in processes involving financial transactions and auditing. It is of great help when analyzing a huge number of pages of the tax change. Artificial intelligence helps to determine how customers are going to react to various changes, situations, and problems.
AI-powered banking mobile apps attract Millennials, as they rely heavily on mobile banking. These apps can readily meet the expectations of users with predictive, contextual, and personal services. The intelligent apps track the user’s behaviors and give insights and personalized tips on savings and expenses.
Millions of transactions take place online regardless of time and place worldwide. Automated processes and other applications are fundamentally attributed to the integration of AI in the banking system and mobile banking apps. The main role of Artificial Intelligence in the field of mobile banking is to improve customer service.
Here we are highlighting a few aspects that depict the transformation of the finance industry through AI.
With the Chatbots, customers can get answers to their queries anytime. Chatbots can answer the customers’ questions and redirect them to the bank’s website if needed. Operations like opening and closing an account, transfer of funds can be easily performed with Chatbots. A phone call to customer care takes time, while Chatbots offers feasible options by providing relevant links to complete a task.
Chatbots significantly reduce the workload of customer care executives. Unlike customer care executives, Chatbots can serve an unlimited number of customers a day.
Financial institutions have full access to a wealth of customer data, including records of online and offline transactions, website analytics, and detailed demographics. Financial institutes can utilize machine learning to analyze and integrate information from multiple databases to provide personalized services based on the behavior of the customer.
Due to Artificial Intelligence, there is an increase in customer satisfaction and customer loyalty in the finance sector. Customer loyalty increases the chances of customers buying products and services from a particular bank by 72 percent. Al helps to analyze text queries by customers and automatically forwards them to the relevant person in the concerned department, which speeds up the response time.
Security is of utmost importance in the banking and payment industry. According to a report, 1.9 billion banks will be using biometrics by the end of 2020. A number of banks are already utilizing fingerprints to replace any other form of client verification.
For many financial institutions, it is a challenge to prevent money laundering and fraud. Artificial intelligence helps the bank to become more efficient in detecting fraud. With the help of tools, banking institutions can automatically conduct and compress data within minutes that typically requires hours of labor.
Earlier, there was a lack of background checks on individuals that’s why they were successful in hiding any previous scams. With Al solutions, it is not easy to con the banks.
Process automation is necessary to support business growth without high-cost technologies. In financial institutions, there are billions of ongoing processes; it is not possible to keep an eye on every process that is happening in different parts of the world.
Al helps in automating high-volume and low-value processes. Artificial intelligence helps in reviewing documents and extracting data in much less time than a human being.
” The technology is able to review 12 thousand documents in just seconds, which otherwise would take 360,000 hours of work for a human.”
Laws and Regulations
The financial industry is full of complex laws and regulations. Proper reporting is important to keep companies compliant, and artificial intelligence helps to automate and regulate the process.
Banks use Artificial Intelligence to make sure that all parts of the business are operating well within expected parameters, and detecting deviations from normal operations can let companies uncover potential problems and react accordingly. To ensure compliance, specialty software can supplement audits, both mandatory as well as optional.
Sophisticated trading algorithms are already ruling the world’s markets, and the speed with which Artificial Intelligence has transformed stock trading is astounding. No doubt, the automation is ruling the trading world; even then the most complex algorithms stick to basic Al reasoning.
With the rise of machine learning the emphasis is laid on making decisions based more on hard data rather than trading theory. Over time, these systems are expected to train themselves and to become more effective to better detect tiny signals that represent a chance for better optimization.
Hedge Fund Management
Hedge funds prefer Artificial Intelligence-based models. Artificial Intelligence related tools are helpful in fetching real-time data from financial markets across the globe. Al-based models analyze different financial markets and make accurate predictions, which prove helpful for both business and customers.
The inputs provided by Artificial Intelligence-based models assist the users to make quick informed decisions. Not only that, hedge fund trading and management can be performed on the move with the help of Artificial Intelligence-based mobile solutions for the financial sector.
Artificial Intelligence has many advantages to offer to the banking sector. Al can provide next-level security to the financial sector. Artificial Intelligence-based mobile app solutions make money transactions safer and quicker and provide a seamless user experience. Al provides collaborative solutions for shared problems and increases the timeliness, accuracy, and performance.
Mark David is a young, energetic and quality oriented editor, blogger at Signzy. Signzy with the amalgamation of Artificial Intelligence in Banking Sector and Machine Learning, they are continually working on the betterment of digital video verification in the KYC processes.