Monday, February 15, 2021

How AI Technology Brought Breakthroughs to Banking and Financial Services Industries?

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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.

Potential of Artificial Intelligence

AI and ML will have a great impact on the effectiveness of your company. A huge majority of the work can be automated by robotic process automation (RPA) and helps reduce the risk of human errors. Gradually, you would have a smarter system and results that are more beneficial.

Unlocking the Value of AI Algorithms

Automation has been around for years and is substituting people with computers for routine activities. Some of the automated tasks that tools such as automated cloud accounting software perform include estimation, exception search, and data record matching. However, artificial intelligence uses more advanced and innovative technology to replace human decision-making.

AI facial recognition – but first, let me take a selfie

There's a very timely saying in the financial market: people don't just need banks, they need banks.

There is a special way of accessing a bank's mobile application in the era of smartphones and simpler login methods: taking a selfie. It is relatively easy to deploy and incorporate this solution. The facial identification technique is fast and does not require the end-user to take too many steps, which in itself is a motivating way to drive the method to be adopted. With simple steps, facial recognition also reduces fraud attempts such as deep fakes and identity theft.  

Citing the bank's official statement, its customers can now: "dispense with passwords or even fingerprints when doing their daily banking on mobile apps," thanks to the facial recognition solution.

But how is this technology functioning? The performance of the login process depends, as the name suggests, on the identification or authentication of a given bank user's identity. AI captures, analyzes, and compares individual patterns that are on our face for each of us.

Customer service

The optimization of revenue and the activities of B2B and B2C sales are unquestionably affected by AI being introduced in banking. This is attributed to better customer service, among other things.

Artificial intelligence enables you to meet the target audience chosen accurately and personalize the message. Market Segmentation greatly shortens the whole purchase process, and the number of consumers of financial products is influenced by well-used awareness of consumer tastes.

AI can also carry out a thorough analysis of consumer decisions and sell only those items that are needed by a given individual. It should be stressed that recommendation models developed for banks are far more nuanced than those used in traditional e-commerce.It provides a better customer experience and thus, making the bank’s service more adjustable to their customers lifestyle. 

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