Recently, the usage of artificial intelligence services in all sectors of the economy has risen, owing to the growing volume of digital data and higher computation capacity. Artificial Intelligence tools have numerous possibilities, which have increased significantly and prompted the development of practical applications in financial and other different sectors.
Artificial Intelligence Services can serve your business with significant benefits allowing specific tasks to be automated and boosting analytical capacity, unlike traditional techniques. According to the Financial Stability Board (FSB), Artificial Intelligence (AI) has been defined as “A set of theories and algorithms that allow computer systems to perform tasks which typically require human intelligence such as visual perception, voice recognition, etc.”
Benefits of Artificial Intelligence in the Financial Sector
Using artificial intelligence services in the business serves the financial industry with multiple benefits, as mentioned below:
- Improves Efficiency
- Reduces Costs
- Enhances Quality
- Raises Customer Satisfaction
- Increases Analytical Capacity
Possibilities in Operating Processes
- Better Automation – Tasks like an instant reply to a customer’s query, image recognition, or natural language processing allow financial institutions to automate repetition. It reduces the potential for human error, increases productivity, and helps in cost-cutting.
- Better Analytical Capacity – With the help of Artificial Intelligence tools, financial institutions can now analyze high-volume data, both structured and unstructured, much faster. Hence, the results are more precise. The increase in variable numbers helps boost the quality of analysis with excellent customer knowledge.
In addition, better analytical capacity allows the financial institutions to take advantage of the entire internal and external data to which they have access and assist them in knowing their customers more deeply with their preferences.
Financial Institutions are implementing Artificial Intelligence tools and techniques across the entire value chain and services. Segments like the back office, middle office, and front office can use artificial intelligence services. Some applications aim to improve the customer base and experience, while others strive to optimize and transform the processes.
Examples of the use of Artificial Intelligence services in the financial sector are highlighted below:
- Chatbots and Virtual Assistants: Communication channels with the customers have now become automated and enable users to settle the queries seamlessly in minutes. These channels are available 24X7, and hence, the interaction data with the customers have been collected automatically.
- Customized Products and Services: Based on tailored customer data, financial institutions can serve them with a personalized experience. For example, sending an alert regarding the account balance, if geo-localization services detect a customer’s activity like shopping, etc.
- Credit Scoring – The increase in analytical capacity can improve credit assessment and make loan origination much faster. The utilization of unstructured data can improve the count of eligible customers by facilitating this analysis to new financial institutions or those acting in new markets with minimal information availability.
- Regulatory Compliance – Artificial Intelligence tools help in the tremendous analytical capacity that eases the process of compliance with specific regulatory requirements such as risk management, accurate reports, and maintaining other legal documents. It also reinforces the financial institutions to monitor the regulatory changes and updates with zero interruption.
Nearly the entire financial sector has adopted Artificial Intelligence services by observing its growing proliferation and possibilities. With the rapid adoption of AI by different sectors, experts at Clairvoyant would like to know your view on how they can serve your business with the best AI solutions to achieve the organizational needs and its goals. Click here to learn more.