Data thrives on artificial intelligence. The better your algorithms will be, the more data you have. Just having a lot of data is no longer enough, though. We also need, ´better ´data…More and more consumers are demanding innovation from financial institutions. They have become tired of managing their capital with overbearing fees and supply products such as credit. As a result, by adopting automation, the financial sector faces pressure (not only from customers but also from their shareholders) to reduce their operating costs.
For incumbent financial institutions, there is no time to waste, as there are plenty of new startups entering the market with a data-first approach.
Fortunately, artificial intelligence is here to save the day.
Financial institutions must put their data to work and incorporate smartness into their organization. Every process and customer touchpoint within banks, for example, can and should be automated.
Have a look at these 10 AI cases for the banking industry, as shown in Datafloq´s article:
- Real-time automated trading
- Compliance effort RegTech
- Automated credit scores
- Automate legal work
- Virtual customer interaction
- Smart robo-advisors
- Virtual assistants
- Customer recommendations
- Anti-money laundering
We took one of these to discuss it further:
It is key for financial institutions to locate fraudulent transactions because these cost good money! That’s why banks use both supervised and unsupervised learning to find out about known and novel fraudulent behaviours in electronic transactions, interpersonal communications, and images claims.
The better financial institutions, the more money they can save, can detect fraud.
To be able to implement a good anti-fraud system, there was always a step in which humans needed to e part of it. With AI, the process could be relied to algorithms that would do the work for us in a result of almost seamless processes, in this case, anti-fraud ones.
Many of the above tasks can now be automated with the rapid progress of AI.
With the industry creating and gathering vast data repositories, the future of finance is artificial intelligence.
What is your industry case? In which area do you see AI is taking over?