According to statistics, 32% of banks are already using AI. Watch this video till the end to find the current list of trends and what to expect from the industry to get ready for the future.
How is AI applied in finance?
First up, let’s talk about automation: It enables organizations to boost productivity and cut operational costs. Statistics say that AI helps companies save up to 70% of the costs associated with repetitive tasks.
Credit decisions: we once developed AI-based software that helps banks access potential borrowers. It immediately analyses countless factors, thus saving costs and making the process much faster.
Trading: AI-driven trading systems can analyze massive amounts of data much more quickly. You won’t believe it, but predictions made by AI algorithms are much more accurate because they can analyze a lot of historical data. Moreover, I can analyze a specific investor’s long-term and short-term goals to provide recommendations on the strongest portfolios.
Risk management: Actually, I can handle risk management tasks much more efficiently and analyze various financial activities in real time.
Fraud prevention: AI-driven fraud detection tools can analyze client’s behavior, track their locations and determine their purchasing habits. Therefore, they can quickly detect any unusual activities.
Personalized banking: AI-powered chatbots minimize the workload of call centers. There are also many apps that offer personalized financial advice so that users can achieve their financial goals, and track regular expenses, income and purchasing habits.
In fact, well-known banks, including Bank of America, Wells Fargo and Chase already own convenient mobile apps that remind users about bills. Ensure timely and effective communication and help users plan expenses. So according to our experience, the most common applications are robo-advice and customer recommendation apps. AML and Fraud Detection systems, chatbots and algorithmic trading systems,
Here’s our view on how AI will further transform financial institutions.
Customer service: Conversational interfaces and chatbots are becoming more common. Companies like Callisto are already developing industry-specific software that makes the necessary calculations and evaluates budgets quickly.
New standards of Security: Can you believe that passwords, usernames and security questions may disappear in the next few years? Institutions are more likely to use AI-backed security solutions thanks to speech recognition and facial recognition and other biometric data, banks might add new layers of security or even replace traditional passwords.
Recommendations: Automated solutions for financial sales already exist, but not all of them involve machine learning. Virtual assistants can also provide personalized, smart recommendations to help you choose insurance services, change your investment portfolio, etc. Artificial intelligence has already changed many industries forever, so it makes sense to expect wider adoption of AI and finance.