Artificial intelligence, or AI technology, has been changing the way business is done in the Finance industry. Over the past couple of years, AI technology has evolved by light-years and is being used by banks, financial institutions, insurance agencies etc to analyze trillions of data points, recognize patterns and trends indiscernible to the human eye, and even predict future outcomes in defined scenarios. AI technologies like machine learning (ML) and natural language processing (NLP) are being used to create conversational trees that allow customers of financial firms to converse and perform specific actions with an automated, digital interface like a chatbot.
Let’s look at some use cases for AI in Finance
AI technology can be applied to automate both internal as well as customer-facing processes such as managing new regulations, creating personalized reports for customers, new account opening, customer profile verification and much more. For instance, one of the best AI development company has designed a high-end AI tool to process complex regulations and policies in the US, thus eliminating the need for banks to rely on manual research which takes a lot of time and is error-prone.
Wealth managers can use AI technology to create in-depth reports for their customers with data insights presented in an easy to understand way, and offer personalized financial advice. Banks can use AI-powered tools to assess the risks, payment history and spending patterns of a loan applicant, or a credit card applicant, and make decisions within seconds, not weeks. Complex AI systems can even help banks predict loan defaulters.
Reporting and Analysis
Until the early 2000s, banking customers had to log in to their online account if they wanted to check their account or conduct basic transactions. Planning outflow of any kind and managing funds involved spreadsheet-based planning. But today banking customers have AI-powered tools that analyze individual account data, assess financial performance, suggest future actions and even help with better budget planning in order to improve financial health. Financial institutions can also leverage AI development services to build automated tools that can examine cash accounts, credit accounts, and investment accounts to analyze a customer’s complete financial health in a dynamic environment. Financial firms can get key insights in real-time through AI-powered tools that have interactive, predictive, and conversational capabilities.
Financial firms of all kinds can use AI and ML technology process unintelligible data-carrying vital information about transactions and merchants, and convert them to text. By converting hard-to-read data into simple information banks can manage their funds better, reduce customer service calls and detect frauds easily and cost-effectively. They can analyze financial data in context so they can easily categorize and analyze purchases, thus improving credit scoring, spending habits and prediction of future earning and spending trends.
Banking and finance customers need helping with financial planning, and they don’t want just random data but active advice on where to invest, what to watch out for, alerts about problems with their account etc., based on their income, savings, expected outflow and so on. AI technology used ML and predictive analytics to do all this and more, while helping customers make smart decisions based on their existing financial status.
Chatbots have become popular for automating simple tasks like new account opening, fund transfer, bill payment, customer support queries and solving basic issues. Instead of hiring an army of customer support executives, banks can install high-end chatbots using smart AI development services. Chatbots work 24/7 and can be accessed from anywhere. Programming a chatbot requires beginning with basic tasks that don’t require cognitive thinking with predictable outcomes. As an increasing number of financial firms develop voice apps, the chatbots will need to recognize vocal pitches, inflexions, pronunciations, and accents.
Investment companies have been basing their decisions on data provided by data scientists to predict and plan for future patterns in the market. The trading and investments domain depends primarily on being able to accurately predict future trends, shifts in the industry and possible new regulations. Using AI and ML tools developed by the best AI development company can totally transform the way traders can process massive amounts of data in real-time and make investment decisions. Machines can also be taught to analyze past data and predict future outcome. AI tools can also suggest portfolio solutions to meet individual needs.
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There’s no doubt that AI is paving the future path of the Finance industry, and is completely transforming the way internal and external transactions are done. It is probably presumptuous and too early to say that this rapidly evolving AI technology will replace humans in order to provide faster and more efficient services that are automated and data-driven. Leading Finance brands are making huge investments in AI development services because they see it as a long-term cost-cutting investment.