Using AI & ML To Improve Banking And Finance: 5 Best Use Cases

Preventing Fraudstrong text
One of the biggest challenges that the industry is facing right now is that of fraudulent practices by individuals trying to collect personal data. A simple lapse on the side of the institution can lead to large losses and even criminal responsibility. AI can detect fraud-related suspicious activities and even add an additional layer of security so responsible departments can be notified within time while also fending off the breach itself.

We may not think that advice is something that the ‘robots’ will be able to provide us with, ever. But if the progress of AI and Machine Learning is taken as a testament, we may be nearer to that future than we think. The combination of machine calculations and human insight can provide us with a better balance of human viewpoint and efficient financial decision making in the form of financial advisory. In simpler words, robots may be able to give us unbiased financial advisory, thanks to the advancement in technology.

Compliance to regulations and policies is one of the backbones of banking operations in the past. However, the sheer number of these policies and regulations can make it difficult to keep a track of them. To avoid missing out on even a single one of them, AI can be fed with all important regulations so it can detect deviations, analyze data, and ensure that all rules are followed. A number of issues can be completely avoided with the help of AI.

Customer support is actually becoming a rather important part of running a business in the current world. All complaints need to be addressed at the earliest because the option of waiting is not a pleasant one for a customer when it is related to finances and banking. Probably the best application of AI in financial services is the simplification of customer services. It can answer customer’s questions fast and in a friendly way, while also providing them with a relevant and satisfactory solution.

Investments and trading is a large part of the banking industry, which is why the sector relies heavily on computing and data analysis to predict future trends. AI and ML allow financial institutions to crunch really large volumes of data and find patterns that may be useful in the future. While there were crises like the 2008 recession that the markets, AI can even help in identifying such triggers in the market, so such great events could be prevented in the future.
Artificial intelligence was developed so a machine could make decisions in the same fashion a human would and has evolved from there to be in its current state; a smart way of making machines do repetitive tasks with 100% consistency and learn from anomalies over time. The financial sector is the biggest benefactor of this technology and will continue to benefit from AI in the future.