Financial services as we know them can only grow so far. Of course, they have evolved significantly over the centuries, though they have admittedly advanced much more in the past few decades than they had done previously. Technologies are the main reason for this expansion, as telecommunication started to pave the way, the Internet then completely transformed the face of the financial industry in general and banking in particular. But, is AI the next logical step? Experts in AI and financial services certainly seem to think so!
Let us explore the potential artificial intelligence has in store for the sector.
AI and Financial Services Already Go Hand in Hand
You may not have fully realized it, but AI and financial services have already been matched to great effect. Financial institutions utilize AI in their analyses of stock market data, while machine learning excels at fraud detection. Pioneering companies such as Dreamquark bridge the gap between AI and financial services by providing AI-based recommendation programs: Explainable AI. Such tools can be harnessed by relationship managers, advisors, and agents to not only strengthen the banks’ own decision-making processes but also enhances customer satisfaction.
In that regard, virtual assistants have certainly improved greatly and now offer a quasi-lifelike experience. Systems can also be tailored to provide them with personalized advice to optimize their private or professional budget. This is a much-appreciated feature in the “gig economy” where many freelancers evolve.
Payment automation, smart devices capable of making highly precise cost estimates (particularly useful in the insurance sector), natural language understanding programs, and more have been rolling out continuously. AI and financial services tend to work well together specifically because certain tasks cannot always be performed by humans so reliably, or because there are extremely time-consuming.
Towards More Standardization
AI and financial services are able to promote a client-centric environment that financial actors are eager to implement. Good customer satisfaction means more loyalty and a higher return on investment, thus fundamentally strengthening business performance. One of the key reasons why artificial intelligence tends towards standardization is that its potential for scalability is theoretically infinite.
While manpower and man-hours are typically indissociable from business growth, AI promises to analyze market opportunities, customer behavior, and continuous improvement all while entailing better customer satisfaction. Indeed, automated data management and decision-making processes are at the heart of what AI can offer the finance industry, helping it complete procedures more and more naturally.
Several institutions are already beginning to delegate customer onboarding, productivity assessments, and countless other operations to artificial intelligence. The reason it works is that machine learning builds a stronger model with every decision it makes, thus gaining inefficiency on a constant basis. This translates into a faster return on investment, a noticeably improved user experience every time a customer comes back, and more “cognitive” banks in general, continuing to raise the bar as it does so and setting new industry standards.
Still Much to Explore
AI and financial services have now been exploring the possibilities of working conjointly for several years and experiments have clearly established that artificial intelligence offers a competitive advantage to those who implement it. The technology is still very young and will, no doubt, evolve to encompass even more applications. By using machine learning and AI-based recommendation in its current state, the finance industry also identifies ways in which it could be made more relevant. This creates a virtuous cycle where FinTech gains from the advances of AI and, in turn, helps it get better at what it does and more affordable. Artificial intelligence is here to stay, and it itself will continue to evolve alongside the processes that use it to grow.