How is Artificial Intelligence transforming Banking and Finance?
Artificial Intelligence in the Banking and Financial Industry
Artificial Intelligence (AI) in the banking industry has come to stay.
The possibility of applying AI to the financial sector implies great benefits for banks as well as better services for consumers.
AI is becoming more relevant every time. AI tools have been conquering different economic sectors thanks to advances in Data Science and Big Data.
Specifically, the use of artificial intelligence in finance allows banks to perform better. For instance, AI helps to identify patterns through large amounts of data, control identity theft risks, organize operations and make investments, among other things.
AI is disrupting the Finance Industry
Currently, the banking sector is experiencing a great moment of innovation with the emergence of Blockchain and Big Data.
Also, the impact of AI has begun to affect different aspects of the traditional banking sector, such as credit scoring, chatbots, market research, fraud detection, financial advice, etc.
Application of Artificial Intelligence in Finance
How AI is used in banking? Artificial intelligence-based software allows banks to identify patterns and create tools to offer better and more personalized services and products to customers. Even though, there is still a long way to go in the field of AI in the financial sector but we have already seen the first steps.
An example is the implementation of AI in the banking industry through chatbots. The chatbots, based on machine learning algorithms and natural language processing, allow solving customer requests without the need for human intervention. Thanks to this, solutions can be offered in a faster and more effective way, giving its users a personalized experience and increasing customer satisfaction.
Therefore, some of the benefits of AI in banking is that it allows banks to reduce the volume of live chat while maintaining quality in customer service.
Another example of using artificial intelligence in banking is for fraud detection. AI allows financial companies to analyze a great amount of data in a short period. So, by collecting more information about transactions AI solutions can identify patterns and spending habits of credit card holders. This increases the accuracy in the authorization of authentic transactions in real-time. Consequently, all of this can help banks work on a more efficient way against fraud, as it allows faster detection.
The use of AI has allowed the entry of new products and services that can help improve the relationship with customers.
Besides, AI in finance sector can help improve internal processes within the company itself, improving productivity, increasing business’s income and, in summary, making them more competitive.
How AI will affect the Finance Industry?
The future of the financial business is linked to the implementation of AI solutions within the commercial and productive structure of the company.
Although for now, we have only seen the tip of the iceberg of the advances that the application of AI can achieve in the world of finance, more and more companies that offer financial services are incorporating AI systems.
The use of AI systems helps companies to be more efficient in their processes, reduce possible human errors and create a competitive advantage, providing added value to the consumer.
Innovation or die
Banks that want to maintain a relevant position in the market need to achieve a true digital transformation.
Adopting AI solutions (Data Science, Business Intelligence & Machine Learning Solutions) in the coming years will be decisive for its survival. Therefore, now it’s the moment for financial institutions to decide whether to choose an external provider or developing the technology internally.
If you are looking to implement an AI project at your company, at Koukio Solutions we can help you. Our team of experts can help you to develop your idea and turn it into reality.
Contact us to get professional advice on how can AI be executed in your business.
Make the most of your investment.