Artificial intelligence is like a game changer for the financial sector as it has made work more easy and convenient for the workers by saving time and extra effort.
FREMONT, CA: A few years back, people dreamt about machines to solve problems faster than humans. Then the very term artificial intelligence came into existence, and now we can see how AI is ruling all the industries including education, banking, transportation, etc. in a different manner.
Artificial intelligence has given the financial industry as a whole a way to meet the demands of customers who want smarter, safer ways to access, spend, save and invest their money. Here are some of the examples of AI in finance.
• Credit Decisions
To get a faster, more accurate assessment of a potential borrower Artificial Intelligence is needed because it leads to a better-informed, data-backed decision. The credit scoring provided by AI is based on more complex and sophisticated rules compared to those used in conventional credit scoring systems. The AI-powered mechanism also provides objectivity in the process.
• Fraud Prevention
Nowadays, financial fraud has become very common, and artificial intelligence has been very successful in battling fraud. It will develop more in the future as machine learning is catching up with the criminals. Credit card fraud is increasing these days due to e-commerce and online transactions, and AI is especially effective at preventing these frauds. Machines recognize suspicious activity and analyze clients’ behavior, location, and buying habits and also help to cut the costs of investigating the alleged money-laundering schemes.
• Personalized Banking
Artificial intelligence provides additional advantages and comfort to individual users. AI can provide comprehensive self-help solutions to reduce call-centers’ workload. There are applications that offer personalized financial advice and help people in achieving financial stability. The biggest US banks, such as Wells Fargo, Bank of America and Chase, have launched mobile banking apps. They provide clients with reminders to pay bills, expense planning, ability to interact with their bank much easier, and gain information to complete transactions.
• Risk Management
In financial services, AI plays a significant role in the risk management sector. This smart processing allows vast amounts of data to be handled in a short time, and cognitive computing helps to manage both structured and unstructured data, taking lesser time than conventional methods. It also identifies early signs of potential future issues by analyzing the history of risk cases.
See Also: Top Artificial Intelligence Solution Companies
