The World of Financial Services Stands on a Brink of Permanent Transformation as Applications based on AI for Finance Take Giant Strides
Chris Skinner once said, “Ignoring technological change in a financial system based upon technology is like a mouse starving to death because someone moved their cheese.” And as a corollary to this ideology, most organizations in the BFSI sector are gradually warming up to the vast pool of benefits offered by recent technological advancements that promise to change the face of finance as we know it. However, the gambit lies in not just transforming the structure of financial services, but also in meeting consumers’ needs. The onus has now shifted in favor of the consumers as we approach the end of this century’s first quarter. The transformation of financial services has already begun, and the biggest part in it is played by applications powered by AI for finance, wherein lies the key to the future in the form of process automation. There are several areas in financial services where Artificial Intelligence can contribute to creating massive growth opportunities. The section below briefly enumerates key applications of AI for the finance industry.
AI in Trading
The portfolio of financial traders has been expanding rapidly over the past few years as more trading in a diverse array of investments is now globally practiced. And having a large enough investment portfolio is not the only criteria carrying focus; more and more traders are depending on other parameters such as trading forecasts and risk predictions. Trading and investments depend heavily on the capability to predict the rise and fall of stocks and other commodities in the global financial market. Such predictions and forecasts carry more weight in this century with a growing reliance on digital means that provide real-time results. Using Artificial Intelligence to automate these processes is a great application of AI for finance as traders can consolidate a huge data volume in a short time and use it for trend predictions based on pattern analysis. Many AI tools are available in the market for traders to predict where to invest to yield maximum profit.
AI in Personalized Banking
If one industry has witnessed utmost change since the last century in the BFSI sector, it certainly is Banking and allied services. Customers increasingly are now looking for a more personalized experience from banks. As digital accessibility for banking services gradually keeps reaching the remotest areas, customers can now perform banking tasks at the touch of their fingertips. This presents a significant advantage for banking institutions to employ the potential of Artificial Intelligence to create exemplary personalized experiences for their customers. Employing customer executive avatars that digitally cater to customers and offering selective insights based on consumer preferences is the key to a new future in the banking industry. AI can tap into information like customer behavior, health, and even important event dates, to create the customer’s overall profile.
AI and Automation in Finance
Inducing process automation in a business through AI is one of its key functions across all industries. However, automation is only the cause as the objective is to reduce the burden of employee capacity and match it with improved task efficiency through existing resources. Thus, the application of AI for finance through automation brings more time to the table for financial professionals to focus on demanding tasks, as AI solutions can mimic humans to work on repetitive processes. Research from McKinsey Global Institute estimated in 2014 that activities comprising 34% of financial managers’ time could be automated by adapting the current technologies, thus freeing up time for finance professionals to tackle strategic activities. Be it any kind of transactional work, auditing, compliance, customer support, or even policy-based tasks, automation through AI in the banking industry can certainly make employee capacity more resourceful in all directions.
Future of AI in Finance:
Financial services have now recognized the potential of AI for improving their business prospects. According to a 2018 report by Narrative Science, 32% of participating banks are already using predictive analytics, voice recognition, and response times in their processes.
The current wave of innovation is focusing on customer experience, and process automation, task automation can offer many benefits to finance. Digital assistants and apps will continue to perfect themselves with improvements like deep learning. Such digital solutions working through integration with robotic automation can thus continue to perform heavy-duty tasks while employees can focus on long-term decision-making strategies.
How does Simplifai use AI for Finance Industry?
Simplifai offers off-the-shelf products and AI-powered digital solutions called Digital Employees that can be configured in the Simplifai Studio – a single platform to serve all business needs. Digital Employees comprise individual products such as Chatbot, Emailbot, and Documentbot, and Rules Engine and API/RPA. These solutions can offer high-grade automation to any organization in the financial sector and streamline their financial services.