Artificial intelligence is revolutionizing the banking and finance industries. Experts predict AI will impact banking even more over the next few years, and some analysts estimate the industry will save nearly $1 trillion over the next 10 years. Here are some ways AI is changing banking and finance.
Customer Service
Since big banks have a large customer base, more companies are turning to chatbots to help customers with some of their basic problems. Additionally, many banks and finance companies are using AI to improve their risk models by processing large amounts of data.
AI helps improve efficiency and customer loyalty by easily getting answers to simple problems. Artificial Intelligence can also help banks decipher big data to help learn more about consumer behaviors and patterns to improve the overall customer experience.
Combating Fraud
AI is a powerful tool in the battle against fraud. Detecting suspicious activity is far more advanced today using digital tools. Some companies can immediately spot fraud using compressed data. What once took hours to decipher now takes a few minutes. AI also helps prevent criminal activity by giving companies the power to use big data to monitor for any possible threats. In many cases, AI can immediately detect odd patterns and behaviors that could raise any potential red flags.
Financial Services
AI is the foundation for robo-advisors. Instead of seeking out financial advice from professionals who come with big price tags, many consumers are turning to companies offering guidance and recommendations from robotic advisors. Using machine learning and machine calculations, robo-advisors provide financial planning with algorithms and other big data. Companies can reduce, or even eliminate, commissions since robo-advisors require no personal income.
Trading and Investing
AI is helping banks and investment companies predict future patterns in the markets. Although the technology is continuing to develop, companies can make financial portfolio recommendations using machine learning. The technology can also advise investors when they should buy, sell or hold stocks or other equities.
From managing money to offering real-time solutions to common banking problems, AI is transforming the finance industry. Many experts suggest AI and banking are the future, and many companies are betting big that the experts are correct.