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Artificial Intelligence (AI) is an essential basis for future technological advancement. AI will change the financial sector, providing the potential for more and more customized services, reducing prices, and creating new business models.
In reality, artificial intelligence has penetrated our lives in a great way as this revolution has hit the consciousness of every organization as the greatest transition that has ever occurred, but we often do not even know how profoundly it has become an integral part of our lives. Almost all companies are considering the deployment of AI as part of their digital strategy to smooth business processes and boost growth, from small to large industries.
It has always seemed that the banking industry is most eager to invest in new technology. No wonder that artificial intelligence has increasingly become one of the technological foundations on which the global financial market as a whole is based.
Digital Automation through artificial intelligence has already had a hugely positive effect on the ecosystem of financial services, and we can only predict this trend to intensify in the coming years. AI has the power to turn organizations dramatically, but only if they implement it with proper attention and care.
Enhancing Fraud Detection
Fraud security is one of the major applications of artificial intelligence in financial services. With the advent of online banking and the rapid growth of digital payments, vast swathes of transactions must be controlled by banks for fraudulent activity. This immense influx of data points presents tremendous challenges for the human brain, but ultimately maximizes the efficacy of Machine Learning systems. In the use of deep learning, we have seen substantial progress, with most major retail banks now depending on machine learning instruments to identify and flag suspicious behaviour. Service providers have to reach beyond conventional approaches and incorporate hybrid solutions designed on holistic understandings of behavioral and anomalous data to keep up with the speed of offenders and comply with tougher regulations.
Indeed, AI Incentive Landscape research showed that approximately 26% of the funding generated for AI startups in the financial services sector was for applications for fraud or cybersecurity, dwarfing other cases of use. As the identification and prevention of fraud continue to be one of the top priorities for customer-facing companies, this number is projected to increase as customers are steadily handing over their data in return for services.
Better Serving Customer Needs
Artificial intelligence is constantly being leveraged by financial services firms to provide personalized services and goods for their customer base. AI offers the opportunity to satisfy consumer needs through multiple platforms and, in some cases, to expand operations on an unparalleled scale for those banks that are effectively mining data. Tools such as chatbots, voice automation and facial recognition are only a few of the ways banks use AI to streamline and customize their customers' user journeys. Importantly, in automated services, customers are increasingly literate and their preferences are continually growing as technology advances, ensuring that companies must continuously adjust or risk being left behind.
