With every industry leveraging the potential of Artificial Intelligence (AI) and Machine Learning (ML), the finance sector is not much behind and is efficiently integrating the power of automation. There are numerous facets of the financial industry, and the industry is constantly evolving, making our lives easier.
Recently, the use of AI & ML in the financial industry has been questioned for its potential. Here are some magnificent ways in which AI & ML can prove beneficial for the sector of finance:
1. Credit Solvency Assessment
Artificial Intelligence helps financial institutions like banks more confidently issue a credit to those who pass the background and the system checks. For this, algorithms and programs analyze all the available information related to a potential borrower, closely studying their credit history and any noticeable changes in their wages and, based on that, determining the borrower’s reliability and the security of the loan.
2. Decision Making
Financial institutions can discover helpful and potentially dangerous trends when an algorithm is designed to analyze structured and unstructured data. It also helps with risk assessment and allows people to make the most competitive decisions that will take the business to its highest potential.
3. Fraud Protection
eCommerce payment systems and banks have been developing models to identify and block fraudulent transactions. These models are built on the transaction history details of clients’ online behavior. With the help of Big Data Technologies, systems based on AI detecting online frauds have been developed.
4. Service Level Improvement
Several financial institutions, including banks, have implemented AI-based applications, enabling customers to get answers to their current questions. For instance, a client can simply determine his expenses bifurcated into primary categories like food, credit card debt, and the most affordable insurance.
5. Customer Acquisition & Retention Based on Data Analysis
After analyzing the individual financial behavior, banks develop appropriate advertising campaigns or proposals. In this manner, banks also receive information related to the intentions of the existing customer or a potential customer.
6. Enhanced Efficiency
Systems with Artificial Intelligence help optimize and automate the processes that occur in bank branches. With automation taking over rapidly, the use of manual paperwork will be abandoned in the future, and all the information will exist in electronic form. Additionally, the ability of Artificial Intelligence to collect and structure ever-changing information can increase the speed and efficiency of reporting.
Nityo Deep Tech knows that automation with the help of Artificial Intelligence and Machine Learning is the future of the modern world and which is why they offer services like algorithms as a service (AaaS), software as a service (SaaS), and setting up infrastructure like cloud and technology integration (Service & Scale-Up).
Suggestion for creatives – we can add statistics related to increasing popularity of AI & ML in financial industry