Artificial Intelligence can enhance financial industry with many distinct solutions. According to a survey conducted by Mercator reported, 13 different departments of financial institutions deployed 93 Artificial Intelligence solutions for their assistance. This shows us the pace of Artificial Intelligence in covering Financial Industries. Thriving concept of artificial intelligence making machines smarter globally and companies are making intelligent and more powerful devices for better service of their customers. As per size and scale, B2B and B2C both have started embracing AI innovation. Sluggishness of AI integration in the financial sector is due to risk confidential data and distinct datasets. AI is offering a huge scope in the financial sector due to rapid and robust processing need. Artificial Intelligence includes natural language and machine learning and analysts believe that US$1 trillion could be saved by using Ai in the financial industry before 2030. Artificial Intelligence is not only transforming financial institutions but it is impacting the whole globe from virtual assistants to chatbots AI is having a significant impact.
Benefits of AI in the banking sector:
AI automate and simplify the process and it has extensive potential for the financial industry especially for the banking sector. AI can do a lot in the banking sector, some noteworthy benefits are:
Reduce workload: Chatbots are widespread now and none is not aware of it. It can serve customers continuously as an answering machine. Additional functionality includes answering of specific questions, redirect to the web link for a particular question and redirect to Human operator if required. Transfer of funds, opening and closing of the account and many other basic functions could be done by chatbots with the help of machine learning for chatbots. Chatbots are more convenient than phone calls to particular operators, by instant connectivity it can also reduce the workload of customer care executives. Chatbots are better than customer care due to the limitations of persons and timings.
Hedge fund management: AI-based models are more useful than traditional funds management because of its tools that are capable of fetching data from distinct markets instantly and by analyzing sentiments or moods of various markets it can predict the results better and users can take decisions on the basis of the predictions. AI is revolutionizing the banking sector and financial institutions as they can provide a personalized experience by better understand user’s behaviour through an app.
Top AI tools in banks:
Banks are using many AI-based tools but these 3 are most crucial for banks.
AI aids regulatory compliance: Highly regulated sectors of the economy are banks. Regulatory authorities make sure that banks are taking measures to avoid large-scale defaults and banking customers are not using banks for their fraudulent activities i.e money laundering. Banks are in immense need of advanced solutions for KYC compliance that keep check and balance automatically.
AML pattern detection: Money launderers use a series of steps for their unethical money to look like legitimate money. Banks can use AI-based software to detect their patterns more intelligently and robustly to prevent money laundering across their channel.
Investment assistants: By using smart systems some banks are delving deeper to support their investment banking research and providing robot-advisors to their customers for investment decisions. Robo-advisors can provide a high quality of guidance and assistance.
The trend of AI is growing exponentially and every financial institution should embrace this trend to stay in the era of competition.