‘Using AI as a part of your business strategy is going to be the first step in terms of benefiting from AI by growing revenue and delivering better customer experience’ says Daniel Newman, the CEO of Broadsuite Media Group. AI is reshaping the financial services industry and the widespread adoption will continue to grow. AI is paving the way to new revenue systems so it is increasingly important for enterprises to focus on long-term implications of AI adoption. From improving customer service to automating internal banking activities, the wave of AI has swept across the financial sector. Read the blog post to explore the benefits of AI in finance.
Reshaping the Finance Industry by Leveraging the Power of AI
1. AI to Help in Fraud Detection
Just like other sectors, the financial sector also aims to reduce the risk conditions involved in the business. Banks and other financial institutions take fraud seriously, the reason being the loan that the bank gives is basically the money of other people. This is the reason the bank pays an interest on deposits and dividends on investments. Financial institutions including banks are using the power of AI for security and fraud identification. AI analyzes the past spending behaviors on different transaction instruments to point any odd behavior. For instance, AI can be used to create alert notifications if an unusual amount of money is credited from the account.
2. AI to Manage Finance
Managing finances could be a challenging task but thanks to the disruptive technology AI. AI is helping banks and other institutions to manage their finances. One of the recent developments of AI-based wallet is PFM (Personal Financial Management). This wallet was started by a San Francisco based startup. The concept is to use AI to build algorithms to enable consumers to make smart decisions about their finances. The wallet work by accumulating the data from the web footprint and creates a spending graph. In addition, PFM saves time from making lengthy spreadsheets.
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3. AI to Help in Personalized Banking
AI not only impacts the revenue of industry but it also provides comfort to individual users. In the banking sector, AI-enabled Chatbots provide clients with comprehensive self-help solutions and reduces the workload of call center employees. AI virtual assistants powered by smart tech are getting smarter every day and making tremendous improvements in the financial sector. These virtual assistants can enable individuals to check account activity, check balance, and schedule payments. There are also a lot of apps powered by AI that provide personalized financial advice to enable individuals to achieve their goals. Individuals can use these intelligent systems to make an optimized saving plan, track income, and other essential recurring expenses.
4. AI to Help in Risk Management
AI in finance is a robust ally when it comes to analyzing real-time activities in any given financial institution. AI provides accurate predictions and detailed forecasts that are vital to business planning. Since AI is data-driven and data-dependent, AI chatbots have the ability to make a recommendation of credit offerings and loans. AI has brought automation to those areas that earlier required intelligent analytical and clear thinking. AI enables businesses to process a vast amount of data in a short time. It manages both structured and unstructured data which would manually take a lot of time and effort. In addition, AI algorithms enable businesses to analyze the history of risk cases and identify signs of potential issues.
AI is fast changing the business landscape of the financial industry. AI in finance has the potential to solve future challenges in the financial institutions or banking sectors. It would enable enterprises to improve internal process efficiencies, enhance cybersecurity, and reduce risk. With the evolution of AI, a new level of transparency will be seen in the financial sector.
Aditi is a passionate blogger and content marketer who loves to pen down her thoughts and experiences. With more than 3 years of experience in content, she can write about vivid domains including entertainment, health, fashion, food, lifestyle, technology, travel. She is also a tech-savvy girl who loves to explore new technologies including Artificial Intelligence, Machine Learning, IoT, Big Data, and ERP.