Have you ever thought about asking a chatbot a question about opening a savings account or the status of your account? Then you will have noticed that artificial intelligence in Financial Services is booming. No sector or industry can remain untouched by this game-changing, advanced technology – and the world of Finance is no different.
According to Forbes, 54% of financial service organisations with 5,000+ employees are now using artificial intelligence.
Embracing Artificial Intelligence in Financial Services
The finance world has fully embraced the potential benefits of Artificial Intelligence, which is now more prevalent than ever. The post recovery from the pandemic has seen us all further embrace the digital experience. Forward-thinking executive managers and business owners now actively explore new avenues of Artificial Intelligence in Financial Services to gain a competitive edge on the market.
AI has helped Finance companies streamline their systems and procedures by automating tasks which provides flexibility for employees to adopt more varied responsibilities. This therefore reduces the need for further recruitment. With the ability to scale, this advanced technology can also be used for short or long-term projects.
High-Tech Customer Services
Finance companies are now required to respond to customers 24/7 and have developed into technology-advanced institutions with creative, innovated systems. AI has been said to create a more positive ‘customer service experience’ with the use of smartphone data, virtual assistants and 24/7 chatbots. These ultimately, improve the bottom line and ensure accurate information for future planning strategies. Banks are also transforming into customer focused, digitally driven business models which mirror those of big tech companies with high-end customer service policies and cyber security systems in place.
Millennials and “Gen-Ze’s” are also dictating that financial institutions increase their IT and AI budgets “to meet higher digital standards”. Younger consumers often prefer digital banking. In fact, 78% of millennials say they won’t go to a bank if there’s an alternative.
Here are our top 5 examples of Artificial Intelligence in Financial Services:
Financial fraud mainly refers to crimes rooted in deception, such as forgery, scams, and insider threats. AI can detect fraud attacks in less than a second using advanced AI-based rating technologies. AI is effective at preventing credit card fraud, a crime that has been growing exponentially in recent years due to the expansion of e-commerce and online transactions.
2. Financial Advisory
Artificial Intelligence in Financial Services transforms the way people interact with money and helps the financial industry streamline and optimise processes. These advantages range from credit decisions to quantitative trading and financial risk management.
With an increase in the need for financial independence by consumers, AI algorithms can provide information on the latest financial trends. AI also assists with portfolio reviews and companies can receive the information they need as quickly as possible. The decision for financial services to adopt AI will be accelerated by technological advancement, increased user acceptance, and shifting regulatory frameworks.
AI trading refers to the buying and selling of assets without the need for human involvement. This covers a broad range of automated trading techniques whereby the AI software makes preprogramed trades. AI trading is not new and has been around for some time. AI has been relied upon by successful traders across the globe and new advancements in technology increase the levels of speed, success and development of stock portfolios.
4. Personalised banking
Waiting to speak to a customer service representative is now a thing of the past. Chatbots and virtual assistants have reduced (and even eliminated) the need to spend time on the phone.
Now, customers can check their balance, schedule payments, look up information on their account activity, ask questions via a virtual assistant and receive convenient personalized banking advice. “virtual assistants can respond to customer needs with minimal employee input,” according to AI News.
5. Preventing Cyber Attacks
It has become increasingly difficult to fight cyber threats without the intervention of advanced AI. In today’s world consumers need to be reassured that banks and financial institutions will keep their information and money as secure, as possible. AI increases company security by analysing normal data entry patterns, staff communication channels and alerting companies of unusual internal or external activity or discrepancies.
So, What is the Future of Artificial Intelligence in Financial Services?
As AI becomes more incorporated into our daily lives and the world, there really is no surprise that the world of Finance is at the forefront of adopting new technology and methodology as consumers become hungrier and more savvy to the possibility of financial freedom and security for themselves, their families, and their businesses.
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