The combination of artificial intelligence and big data has the potential to revolutionize financial services. The ability to mine vast amounts of data, coupled with machine learning capabilities, will provide a new level of insight into the past behavior of the economy and financial markets. In many ways, financial services can be considered a perfect match for artificial intelligence. This is not because financial services are the only vertical using technology to deliver better customer service or more efficient processes. Rather, it is because the regulatory framework that governs financial services lends itself well to automation and standardization through artificial intelligence systems. The use of disruptive technologies in banking services is already becoming evident in several areas. Here are some of the most innovative use cases that AI has had in the financial services industry:
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Predictive Analytics
An agile work culture is one where teams work collaboratively, delivering value in short iterations. Digital business owners can promote agile remote working by setting up practices that challenge and encourage collaboration, such as video conferencing, digital whiteboards, and online project management tools. These tools foster constant communication that helps team members remain on the same page.
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Fraud Detection & Prevention
The financial sector is plagued by fraud. This affects the trust of consumers in financial services companies and costs companies billions of dollars a year. Fraudulent activity can be detected using artificial intelligence. With the help of AI-enabled solutions, you can detect hidden opportunities that exploit your bank.
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Customer Relationship Management
Marketers can improve engagement with their content by identifying consumer preferences with artificial intelligence. A marketer can develop more engaging content by using artificial intelligence to determine consumer preferences. One of the newest trends in marketing involves deploying artificial intelligence to manage customer relationships. With facial recognition and voice commands, customers can access and use financial apps via the bank's website 24/7.
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Chatbots
Financial institutions are exploring the potential of using chatbots to provide more efficient communication with customers as artificial intelligence takes over more work once done by humans. Chatbots integrated into various messaging platforms, including Facebook Messenger, Slack, Telegram, and Telegram Business, have become more widespread in the finance sector. With the advancements in chatbots, business professionals can now open new accounts, solve customer complaints, and more.
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Risk Management
The use of AI has affected a wide range of risk types, including model, compliance, operational, legal, reputation, and regulatory risks. There has long been concern among banks about bias among their staff when they offer consumer advice. In reality, the risks of delivering advice based on AI recommendations are not that an individual piece of advice would be biased, but that if the AI recommendations were biased, the institution would actually be systematizing bias into the decision-making process.
AI is being adopted rapidly in the financial services industry. These technologies can help banks and financial institutions increase customer satisfaction while increasing operational efficiency and profitability. There are still obstacles to eliminating before artificial intelligence can become a part of our daily lives, although it has the potential to revolutionize the way bankers do business. As a result of AI, customer service is improved, risk assessment is improved, operational costs are reduced, and profits are increased.
