By 2020, AI is expected to become a core component of the fund design process, particularly around trading authorizations and hand-offs with investors. Due to expanding digitalization the risk of fraud and hacking it will continue to grow.
AI already plays an important role in investment activity and high-speed trading with algorithmic triggers. Besides, it is used by banks for detecting payment frauds. It acts like a Giant Brain which analyzes the facts, does the background work and remains unseen by the end Clients.
The power of AI will open even more perspectives for the future of banking and finance.
As bank business processes are mainly data-driven, they are predestined for artificial intelligence. For example, AI can be applied for alerting, advisory and reporting.
In fact, solutions like Robo-Advisors are on the rise. They provide bank consultants with instant recommendations which are context-based and concern a particular customer. These data significantly simplifies their job. Consultants can spend more time for personal communication with customers and give an in-depth consultation.
In the coming years, companies will be more likely to use automated tools for their processes. It is a win-win situation for both banks and its clients. Customers can benefit from a context-based finance alerting instead of being chased by generic ads. At the same time, banks and advisors will have a chance to foster customer contact much more efficiently enabling 24/7 client service.
However, a complete 100% automation is less relevant for the financial sector. Though customers prefer routine transactions to be managed automatically, they still prefer communication with a human advisor when facing a complex decision.
Another important activity AI can handle is reporting; it is extremely important to get the grasp of the data, but it’s a time-consuming effort for a human. AI is capable of analyzing a tremendous volume of data and generating reports promptly.
Thus, bank employee can focus on ‘customer-centric’ activities, while AI takes care of the data and reporting.
Benefits for Banks:
AI enables significant costs reduction by optimizing operation efieciency. The generated savings can be used to improve customer service quality.
Continuous learning and self-regulation
AI can continuous learn from the operating environment, and quickly adopt the new techniques.
A machine can process several operations simultaneously, analyze changes in the environment and adjust its behavior accordingly.
For banks time is money. But AI not only saves employees’ time on routine tasks. It also helps them focus on new solutions instead of dealing with the recurring problems.
The power of such systems lies in detecting patterns and converting them into reusable knowledge (know-how). AI acts like a giant brain, analyzing the facts and finding cause-relationship connections a human may have missed. The ability to generate know-how within the company makes AI a valuable investment into company’s sustainability.
About the author
Alex Arabey is the head of Business Development at Qulix Systems, leading IoT development company according to Clutch. Mr. Arabey developed the company from a small start-up to the large software company that cooperates with various service providers around the world.