People are adapting to AI (Artificial Technology) in a slow but gradual manner
There’s no way to deny that modern technology is evolving at a rapid speed; this even has created an impact on almost everyone’s life.
Artificial technology has become immensely popular in different industries for various reasons. Efficient process, information management, data pattern identification are some of the reasons why AI is the next big thing.
Now, as the finance industry is the base of the global economy, the industry needs upgrades to cater to the customers. The previous procedures of serving customers don’t work anymore. Now an account holder does not need to go to the bank to complete any transaction, as he can now do that using his smartphone or any other device.
In case of the finance industry, artificial intelligence and machine language both have several applications. Chatbots, robotic process automation are some of the examples of such applications of AI in finance.
According to a report, using AI technology, financial sectors can save up to $447 billion by 2023. The question is, how? How can AI transform the finance industry and help the global economy?
Here in this article, you can find five ways AI is transforming the finance industry for the greater good.
Artificial intelligence in finance is used in keeping records which are essential for this business.
One such example is credit cards. A credit score is used to check whether a person is eligible to get a credit card or not. Before offering a credit card, a finance company goes through all the records of the person who has applied for the card. They check the current active loans of the candidate, loan repayment habit, the number of credit cards the person already has, etc. These data are used to edit the credit card’s interest rate that they are offering to their customer.
Now deeply think about this, is it really possible for a person to go through thousands of candidate’s records who have applied for credit cards? An AI can do this difficult work in just minutes since it has all the data saved in it and with proper programming, it can also recommend proper card type and interest rate for the customers. This makes the work of the financial institution very easy.
Human Analysts are very promptly getting replaced by Artificial Intelligence (AI) and Machine Learning (ML). An analysis done by a human can have many flaws, which can cost heavily to the financial institution, whereas an AI’s memory is based on Machine Learning which is absolutely safe and there is no margin of error.
Many financial institutions have also introduced Chatbots to their websites. Chatbot created by AI development company can directly interact with the customers and also answers their queries. This not only saves time but also saves a lot of money for the financial institution. These bots are not only helpful in commercial activities, but they also can be very helpful in non-commercial activities too. One example of non-commercial activity is arranging meetings in non-commercial places like clubs, societies, or any other places, keeping in mind the availability of the persons involved by analyzing their daily routine and free time.
Fraud Detection and Management
Every business’s first goal is to reduce the risk, and for a financial institution, it is much more important to reduce the risks, as they work with a lot of money.
There have been many unfortunate cases of scams with banks and financial institutions in the past, so they are very cautious about their money. Many financial institutions have introduced AI to detect fraud.
These AIs can detect fraud by studying one’s transaction activity. They can detect fraud by tracking any unusual transactions, cards used for transactions in the wrong places and many more clues. With the help of these AIs, it has become very difficult for fraudsters to perform these activities. Sometimes they make wrong decisions but once it gets corrected by any human, they try not to repeat the same mistake. This makes the AI system more reliable and accurate.
Financial Advisory Services
Machines can do much more efficient work than that of a human with just a one-time investment. Machines use bionic advisory, which provides more efficient and accurate calculations but machines can’t do it all. A perfect collaboration of a human mind and machine is required to get perfect results. The final decision should always make by a human because a human mind and a machine are never the same.
To determine the future patterns in the financial market, these investment companies use AI and computers, as things like domain, investment and trading depend mainly on the future predicting ability. Machines are very useful in these conditions because they can manage a huge amount of data in a very short time. These machines also have financial crisis memory saved in them and they can find all the flaws in the system and create solutions for them. A person who is ready to take high risk can take help from AI on decisions such as when to buy, sell or hold stocks. AIs can also warn customers when the market is going to fall.
AI is making gradual progress in the financial sector and looking at its pace; it can be said that soon it is going to replace human employees. The AI companies are upgrading the chatbots for more efficient work. It is indeed a cost-cutting solution for the financial industry.
In the end, it is evident that using artificial technology can lessen the chances of scams or losses, and customers can experience great support and smart trading.