Around the world, Artificial intelligence (AI) and machine learning (ML) is rapidly becoming a necessity for financial services businesses to make intelligent, fast, and effective decisions while navigating an increasingly data-driven business landscape. The Financial Services & Banking industry has already embraced AI and ML in customer-facing and internal business functions. AI is already being used in automating routine administrative & operational tasks, fraud detection, credit underwriting, customer service, and much more. 

Traditional transaction monitoring requires customers to undertake a lengthy process to resolve instances of fraud which can decrease customer satisfaction. ML solutions simplify the fraud detection process using the customer transaction data to monitor financial transactions in real-time, detect irregularities in financial activity, and flag & intercept fraudulent transactions. Overall reducing the processing time and improving the ability to detect fraudulent transactions. 

Most businesses in the financial services & banking industry must deal with extensive labor-intensive routine tasks such as compliance reporting, administrative paperwork, customer documentation, and so on. AI tools such as chatbots can automate responses to customer support requests as well. These processes are mundane and tedious for employees however they are still an important part of the business. AI-powered automation can complete these tasks with a high degree of accuracy and efficacy, which can free up employees to focus on value-add work that requires personal attention. Additionally, AI solutions generate excellent documentation for internal processes which can be very helpful during financial audits. 

Machine Learning can detect patterns in customer data and generate insights into customer demand for financial products, market trends, and customer preferences. Insights give lenders and financial service providers a rich profile of their customers with detailed breakdowns based on various customer segments. Businesses can use customer insights to personalize financial products and services, improve customer experience, boost the success of marketing and sales campaigns through targeted advertising, predict customer response to new products, and much more.

AI-based credit decision systems can utilize a customer’s historical financial data to rapid and efficient credit decisions. AI can potentially improve the fairness of credit decisions by considering all the factors influencing a customer’s creditworthiness without any bias. Overall, it offers customers expedited credit decisions and it minimizes risk to lenders by identifying the least risky customers.  

ML Algorithms can assist financial traders in making better trade decisions where speed is critical. Al trading solutions can analyze financial markets, business news, and trade activities in real-time to detect factors that may impact security prices and execute instantaneous trades based on conditions set by traders. 

Over the last few years, financial markets have had to adapt to a variety of challenging global events. AI & ML are now a necessity for financial services to successfully navigate ever-changing financial market conditions. More than ever, customers are looking for seamless experiences with high levels of responsiveness from financial services providers. AI & ML solutions can enable businesses to meet customer demands for personalized financial products & services efficiently & effectively.