How is AI helpful in banking and finance?
Introduction
Artificial intelligence is the technology that allows the imitation of human intelligence processes by systems for expert systems, natural language processing, speech recognition, and machine vision. It is a powerful technology that accelerates many existing digitised processes to be intuitive and do things that one can imagine.
AI is not a one programming language technology. Still, it uses many programming languages to lay the foundations for this technology to work, including Java, Python, R, and beyond. And AI is not a software technology but a combination of hardware technology. In combination, they tame what is known as machine learning algorithms to do what one thinks impossible yesterday to be possible today, if not tomorrow.
So, the artificial intelligence course will specialize in the formulation of the technology and the wide range of the use of this technology in different fields. You will be the ones who will use AI technology in banking and finance, and you may learn the technology of AI for this domain-specific. This is how the future will be for AI as a field of study. As you can read in the article, Future of AI according to top AI experts: In-Depth Guide, interests in AI have only been increasing daily, with publications in AI research soaring to 9 times in 2017 from a period between 1996 to 2017; and a 3% contribution increase in 2017-2018.
The importance of artificial intelligence
Artificial intelligence helps the finance domain by becoming the mind of financial analysts who will do personalized perspectives called financial advice or consultancy for buying a home. Intuit Mint or Turbo Tax is an AI-based financial application that can collect personal data against the tax criteria of the state and provide personalized financial advice. Similarly, IBM Watson is an application that helps to make home-buying decisions. Many such AI applications are doing an excellent job on par with the people and undauntingly in stock and trading on Wall Street.
Artificial intelligence role in the banking domain is by making banking driven more customer in the mobile – mobile banking – turning the mobile banking intuitive and personalized, chatbots to reply to banking customers around the clock and are becoming more conversational, helps to analyze business banking transactional analysis giving precise and advanced information on money flow globally and locally, data security, risk management, enhances transaction data experience that will also help in curbing financial frauds and user experiences by providing spending habit analysis and budget planning.
Banking and financial sector
Already banking and financial sectors are facing radical changes enabling services in mobile banking, e-banking, and real-time money transfers globally and at the ready reach of the customers. Some of the established and frequent AI inclusion in banking technology is voice recognition and predictive analysis. It can also help trace bank transactions in financial frauds and help secure against money laundering and identity frauds. AI automates a lot of the tedious banking processes like claim management by sending reminders and blocking accounts which will free up employees in performing other valuable customer services.
While making its way into the banking and finance sector, artificial intelligence changes the way customers bank and interact. Banking and finance require new brains that can think technology-wise within their domains. These job opportunities will open up in core AI technology, where ai ml training will be needed. But those who are not into programming or coding or hardware-oriented or chip-minded will be required to think of the banking and finance domain for enhancing their processes as driven by AI technology. They will also need such a technology perspective at work. With increasing automation for inside-out banking and finance tasks, employees need to upgrade their technical skills to operate new technology-driven banking tasks and interfaces. This is much like banking and finance sectors adopting digitalization when all the staff has to unlearn and learn new ways. Now the staff needs to learn new banking and finance handling methods.
Bottom line
AI is only helping banks and financial institutions by adopting automation as it reduces cost and enhances better customer service making life easier and enabling better processes. AI helps to bring in novelty in three forms: virtual assistants or conversational interfaces, machine learning techniques, and robotic process automation. The use of these technologies increases day by day, while the advancement of such technologies also increases day by day. With increasing technology use in banking shrinking banking and financials globally into the small systems, there is an expanding and increasing cyber threats which Ai is also addressing.
These are also dealt with by AI technology advances to reduce heavy investments with third parties. AI is thus a boon to the banking and finance sector because it revamps the sector through digitalization that can be personalized and sources unrealized opportunities. It is turning more as part of the telecom sector, reduces the crowd to the banks, and increases employees’ lives in banking and financial institutions who earlier had to toil days and nights, especially during financial year closure and auditing days.
