Artificial Intelligence Playing Major Role in Financial Sector

access_time January 5, 2019
by   TechmavenitAdmin
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With customers demanding a better and faster way to interact with organizations, enterprises cutting across sectors are turning to artificial intelligence to transform their business, remain competitive and grow their business. A survey by Econsultancy has revealed that providing a good customer experience represents the most important ingredient of customer loyalty and that customers expect this to be as personalized and relevant as possible. This realization is felt all the more within the financial sector which by incorporating AI in their everyday processes, seeks to provide their customers with the best customer experience. Royal Bank of Scotland, Bank of America, Caixa bank in Spain and Swedbank are just a few examples of major banks that are incorporating artificial Intelligence  technology in to their day-to-day workings. Financial institutions in possession of huge volume data With the sheer volume of data that the financial industry produces at any given time, there arises the need to analyze and act upon this huge data as efficiently as possible. Artificial intelligence is able to analyze this incredibly large volume data from every angle and use this actionable information to productive use. Let us now look at the manner in which artificial intelligence is affecting the financial services sector. Personalized financial services Financial services in the early days referred mainly to the process of saving money in the bank or taking a loan. However, the introduction of AI has meant that banks are in possession of huge volume data regarding the personal habits and goals of customers. They can then analyze this data and provide various financial products including investment options that are all customized for clients. Reduced cost of serving customers Artificial intelligence has helped financial institutions reduce the cost of serving customers through automation. Financial institutions can replace costly human resources and use artificial intelligence robots in its place. Artificial intelligence is also able to attract a larger section of the population to financial services as AI has made financial transactions less cumbersome, inexpensive and less time consuming. Greater insight generation AI tools are able to read, review and analyze vast quantities of data that financial institutions are in possession of and also provide insight in to how customers feel about certain financial products that banks and other financial institutions offer. Improved business acceleration Implementation of artificial intelligence will help financial institutions improve efficiency and performance. Banks can use artificial intelligence to minimize the time it takes to approve a loan and by doing so, it is able to vastly reduce operating expenses as also it provides for a better customer experience. The increasing demand for IBM Watson among organizations is led by a desire to cut costs as also to provide customers with a more pleasant customer experience. Providing better insights for more informed decisions With the availability of key analytical data, artificial intelligence is helping managements of financial institutions make better-informed decisions. Managements do not have to rely solely on human advisers to make financial decisions but can take the help of AI machines that can analyze large volume data and make data- driven – management decisions. Fraud detection made easier Use of artificial intelligence makes fraud detection easier. This is because AI is able to simulate situations where a fraud or cyber crime is likely to occur and can act before a fraud is committed. Additionally, it is able to secure the system against fraud due to its ability to understand human psychology and to predict the likely sequence of actions that a human would follow to commit the fraud.

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