Have you ever inquired about creating a savings account with a chatbot? Have you ever received a call from your bank asking to confirm activity on your credit card account? It appears that every business or area has been affected by the rapid advancement and ubiquity of artificial intelligence. Among those who are figuring out how to make full use of AI as a service—a revolutionary technology—are the banking and finance industries.
Enhancing customer service, automating repetitive jobs, streamlining processes and procedures, and boosting corporate profitability are all benefits of AI as a service. Indeed, Business Insider estimates that by 2023, artificial intelligence applications will result in $447 billion in savings for banks and other financial organizations. According to Forbes, machine learning is being used by 70% of financial companies to identify fraud, modify credit scores, and anticipate cash flow activities.
Continue reading to discover the use of AI as a service by financial businesses and the outlook for this quickly changing sector.
Typical Uses Of AI As A Service In Finance
Evaluation of risks
Is it possible to utilize AI as a service to assess a person’s loan eligibility? Indeed. In reality, Towards Data Science reports that banks and applications are employing machine learning algorithms to offer tailored alternatives in addition to assessing an individual’s loan eligibility. The benefit? AI is impartial and capable of determining loan eligibility more rapidly and precisely.
Risk control
In banking, like in almost every other business, risk reduction is a constant and significant concern. Machine learning is now able to assist specialists in using data to “identify risks, pinpoint trends, preserve labor, and guarantee improved information for future planning,” as stated by Built In.
Detecting, managing, and preventing fraud
How often do credit card companies contact you after you’ve made many purchases? Artificial intelligence as a service has made fraud detection systems able to examine an individual’s purchasing habits and send out a warning if something appears unusual or goes against your usual spending habits (Towards Data Science).
Decisions about credit
Artificial intelligence can evaluate a potential consumer faster and more correctly based on a range of characteristics, including smartphone data, according to Towards Data Science (plus, robots aren’t biased).
Financial consultation services
Are you trying to keep up with the newest developments in finance? Would you like us to to review your portfolio? In order to give you the information you need in the fastest period, Forbes reports that artificial intelligence algorithms can assess a person’s portfolio in addition to the latest financial trends and other relevant data.
Exchange
Unsurprisingly, artificial intelligence is frequently utilized as a service in trading, as it is employed to examine trends in massive data sets. According to Built In, AI-enabled machines can sort through data more quickly than people, which speeds up the procedure overall and saves a significant amount of time.
Financial management and customized banking
The need to wait on hold for customer assistance on the phone has decreased—and in certain cases eliminated—thanks to chatbots and virtual assistants. Towards Data Science states that consumers may now check their balance, plan payments, view account activity, ask questions of a virtual assistant, and get tailored banking advice whenever it’s most convenient, all made possible by technology and artificial intelligence.
Stopping cyberattacks
Artificial intelligence can provide consumers with confidence that banks and other financial organizations will protect their money and personal information. Human error is thought to be the source of up to 95% of cloud breaches. With its ability to analyze and identify typical data patterns and trends, as well as notify businesses of anomalies or unexpected activities, artificial intelligence may improve business security.
Improved ability to anticipate and evaluate loan risks
According to Forbes, artificial intelligence is capable of analyzing a customer’s behavior and spending habits to forecast their loan-borrowing tendencies. This is crucial in regions of the world where people may not have access to traditional finance but have cell phones and other forms of connectivity and communication. Forbes presents the following example: In order to create a more comprehensive picture, a lender may utilize an app that a loan application downloads to examine their “digital footprint,” which includes social media activity, browsing history, and other information.
Facilitating round-the-clock contact with clients
Customers no longer have to wait to talk with a human when they have questions at any time of day or night, thanks to artificial intelligence and the widespread use of chatbots and virtual assistants. In a recent Yahoo! Finance video, Rob Thomas, senior vice president of IBM’s Cloud and Data Platform, explains that it’s always about making human interactions more efficient, since in many of these scenarios, there’s still a customer care representative. “However, AI is increasing their productivity and improving their problem-solving skills.” As a result, AI News claims that “virtual assistants can respond to customer needs with minimal employee input.” ” Reducing the time and effort spent responding to standard client questions is a straightforward strategy to increase productivity. This allows teams to concentrate on longer-term initiatives that foster innovation throughout the company.”
Decreasing the requirement for automation of processes and repetitive labor
Artificial intelligence (AI) as a service may automate time-consuming, repetitive operations that are tedious and repetitious, such as evaluating papers or extracting data from apps, freeing up staff members to work on other projects.
Decreasing mistakes by humans and false positives
Human error is a regrettable fact of life; people make errors. According to a poll conducted among IT professionals in the financial services sector, 94% expressed a lack of confidence in the ability of their staff, consultants, and partners to securely safeguard consumer data. Happily, human error and false positives may decrease with the use of AI.
Capacity to carry out assignments of any duration
Due to artificial intelligence’s scalability, you may apply this cutting-edge technology as a service for both short- and long-term initiatives.
Making intelligent underwriting judgments
According to Built In, artificial intelligence (AI) technologies are assisting banks and lenders in “making smarter underwriting decisions” throughout the loan and credit card acceptance process. To achieve this, a range of variables are used, which helps to provide a more realistic representation of individuals who would be viewed as historically marginalized.
Save funds
All of the things that were previously discussed on this list have the potential to boost income. Instead of recruiting new workers, you may allow staff to take on greater responsibility by automating processes. AI used to help evaluate loan eligibility usually identifies borrowers with good credit who won’t lapse; virtual assistants and round-the-clock chatbots improve customer support.
Artificial Intelligence's Prospects in Finance
Artificial intelligence is becoming more and more common in many industries, so it should come as no surprise that the banking industry is embracing it as a service, especially in light of the way COVID-19 has altered human contact. Artificial intelligence (AI) has had a significant influence on the banking sector, and analysts estimate that by 2030, it will save the sector around $1 trillion by simplifying and combining activities and processing data and information significantly quicker than humans.
In order for banks to stay relevant, McKinsey & Company states that “artificial intelligence technologies are increasingly integral to the world we live in.” “A comprehensive change affecting many organizational levels is necessary for success.”
The fact that millennials and Gen Zers are quickly overtaking baby boomers as the nation’s “largest addressable consumer group” is also noteworthy. This means that banks are looking to boost their IT and AI budgets in order “to meet higher digital standards,” as younger customers frequently favor digital banking. Actually, according to 78% of millennials, if there is a better option, they won’t visit a bank.
AI in Banking Ushers in a New Era
Artificial intelligence is not just thriving in one industry but in every industry and company. All you have to do is pose a query, and artificial intelligence will provide the most optimal response. In addition to providing answers to financial problems, this revolutionary technology also makes predictions about banking trends. With the help of AI as a service, your staff can focus on becoming more creative and lessening the burden of their demanding tasks.
ITG begins with analysis and progresses to the design stage. We test our improvements as soon as they are completed to ensure that they produce the expected outcomes. With AI’s total satisfaction, deployment for the future occurs, along with a comprehensive continuous maintenance service. ITG is committed to offering the greatest artificial intelligence service, possible to the banking and financial industries.
Farah Jawed Khan
Content Writer | Digital Marketer
I have been doing content writing since 2019. I have covered a vast area of services and products like IT, Fashion, Law, Business Coaching, Automobile, and the list goes on.
