The adoption of Artificial Intelligence is currently on the rise inside the financial sector. The demand for AI in financial services has significantly grown, offering opportunities for cost reduction, time-saving, more tailor-made services, enhanced efficiency, and productivity through automation and risk management.
All these helpful applications of AI can provide significant benefits to companies. Let’s explore the key areas where AI can help financial institutions streamline and improve their finance processes.
Improving customer experience
Financial services providers embrace AI technology to provide a more personalized customer experience. The use of predictive analytics helps customers manage their finances and get personalized advice. AI chatbots are also widely adopted to interpret customer inquiries and provide relevant responses in real-time, thus reducing waiting time for customers.
AI may cleverly be applied in loan application processing to make it more efficient. AI-based models automatically check personal data to verify the identity of customers, thoroughly review the transaction data and make customized credit offerings for customers. AI credit risk models make reliable predictions on who is eligible for a credit and who isn’t, assess credit decision making process more accurately, and determine the potential risk of any loan based on the stored database.
Using AI to manage risks is particularly helpful when handling massive amounts of both structured and unstructured data. Through the use of advanced algorithms, AI helps with the fast processing of the data, implements cognitive analytics to anticipate and manage the risk cases to ensure better business planning for the future.
Preventing financial crime
AI provides valuable insights from data to help estimate risks and fight financial crime through fraud identification, anti-money laundering, and anti-bribery. Machine learning-based AI models can perform analytics to identify fraud patterns and payment anomalies, deliver risk scores, and help with developing anti-money laundering solutions for real-time payment systems. AI is also capable of analyzing emails, expense reports, and large amounts of other unstructured data to identify possible forms of corruption.
Today Artificial Intelligence has come to play an important role for many financial services organizations, many of which are already reaping the benefits of AI and seem to benefit the most out of incorporating this technology across the industry.