Artificial Intelligence and the Future of Banking and Finance

A I Artificial Intelligence On Guard Against Fraud

Artificial intelligence (AI) is expected to be the next big thing in the banking and financial services sector; it has been touted as next great breakthrough that will change the way we bank and conduct financial transactions.

Why not, the vast amount of data, high volume transactions, and the quantitative nature of the banking and finance industry makes it one of the sectors where artificial intelligence will be better applied. It is believed that financial institutions can leverage the power of AI to transform current processes and improve services delivery as well as the use of financial products.

A Powerful New Weapon Against Financial Fraud

In today’s low-trust environment, artificial intelligence offers a new way to tackle financial fraud, build trust, and create a secure financial atmosphere. New forms of AI are being introduced to catch fraudsters with exceptional speed and efficiency.

Thanks to such new technologies, artificial intelligence could identify irregularities or patterns in transactions which might point to fraud, money-laundering, or terrorist activity. Tools like machine learning and data analytics could be used to scrutinize the vast amounts of data AI holds on clients and transactions, and compare this information against publicly held data to flag suspicious activity for security teams.

Asides these anomaly detection apps, future security measures will require biometric data such as facial recognition, voice recognition, etc., to provide more protection to customers.

Role in Customer Service as well as Sales and recommendation of Financial Products

Other potential future applications of AI in banking and finance lie in the area of customer service and sales of financial products. An Accenture report states that artificial intelligence will become the primary channel through which financial institutions and their clients will interact in future. Indeed, this prediction is fast becoming a reality thanks to organizations like Kasisto, which are developing chatbots that enable bank customers to chat with their financial institution using text-based natural language.

The Kasisto app facilitates finance-specific interactions by allowing customers to ask finance related questions via chat. Similarly, McLean-based Capital One Finance has developed a chatbot called Eno to enable its clients to complete a broad array of tasks on their smartphone. Customers can use the app to transact, check their account balances, as well as request card information such as bill dates and limits.

Beyond its role in enhancing customer experiences, AI is also expected to play a significant part in the sales and recommendation of financial products. For instance, a robo-advisor might recommend portfolio changes. It is also believed that robo-advisors could potentially employ some level of machine learning to recommend a specific car or home insurance plan.

As AI continues its journey into the mainstream, it is predicted that the technology will play a more prominent role in reinventing the banking and financial services landscape by making it much easier for banks to analyze risks and assess the behavior of a prospect to discover any possible fraud, among other things.

Overall, the future of AI promises a new era of disruption in the banking and finance industry.

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All You Need to Know About Artificial Intelligence (AI)

What is Artificial Intelligence?

Artificial Intelligence is one of the most hotly discussed topics in the tech world today. Hardly does any tech conversation take place nowadays without the mention of Artificial Intelligence. This raises the question, what exactly is artificial intelligence?

As the name implies, artificial intelligence refers to the ability of machines to perceive and comprehend complex information. In other words, Artificial Intelligence is a technology that is built to function in a way that imitates how humans operate.

Applications that utilize artificial intelligence attempt to make the user experience feel much like interacting with humans. Like humans, artificial intelligence also develops skills through learning. AI programs learn and adapt by taking in information, processing it, and saving such data for future reference.

By their very nature, AI systems exhibit certain behaviors that are associated with human intelligence, including, learning, planning, problem solving, reasoning, and motion. Others behaviors demonstrated by the programs include perception, knowledge representation, manipulation, among others. To deliver useful and accurate information, the AI system is trained on the data it is fed.

The advances being made with artificial intelligence in recent times is thanks to improvements in machine learning, which involves educating computers to perform tasks based on examples instead of depending on programming by a human.

What Are the Uses of Artificial Intelligence?

The journey has been long. Nevertheless, artificial intelligence is gradually evolving into something that’s useful to human society. The knowledge displayed by machines have many applications in our community today. Some of these include voice-based personal assistants such as Siri, Facebook bots, Google Voice, as well as Alexa.

Artificial intelligence also has application in suggestive searches, behavioral algorithms, as well as self-controlled and self-driven cars that feature sophisticated predictive functionalities. Robots are also being used as personal assistants by humans to help perform tasks such as ordering foods, clothes, or even booking movie or flight tickets.

AI is also used in smart cars such as those being built by Tesla and Google. Other areas where AI is applicable include customer experience, entertainment, buying prediction, etc.

Types of Artificial Intelligence

Typically, there are two types of artificial intelligence: narrow artificial intelligence and general artificial intelligence.

  • Narrow Artificial Intelligence: Narrow AI systems are those that have been taught how to perform specific tasks without being directly programmed to do so. Examples of this machine are those used in Siri and self-driving cars. These systems are so called because they can only be taught to perform specific tasks.
  • General Artificial Intelligence: General AI systems are those found in humans, which are adaptable and flexible. General intelligence can learn how to execute different functions such as haircutting, bathing, building spreadsheets, etc. This type of intelligence does not yet exist in a software form.

 

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How Fintech Is Aiming Millennials Using AI Machine Learning

Millennials >The Electronic Natives

During the last a few years, millennials have already been upending the customer market as businesses struggle to get the easiest method to attract the world’s first group of electronic natives, a wily lot whom thrive on invention, automation and also all of the tech gadgets that are latest.

As more of these young-adults go into the employees and start invest in their futures, businesses are speedily understand they may have to transform their approach to attraction to this demographics’ distinctive set of needs and also objectives, which take course to totally disrupt the status quo. In a nutshell, it can’t just be business as usual with the generation that is Smartphone.

Millennials Branded

As millennials have already been burdened with a few unattractive labels in modern times, as well as selfish, entitled and award kids, this tech confidence bunch has also been sleeted for being more progressive and also available to new ideas than earlier generations.

Millennials value transparency in addition to convenience. They basically demand to possess a modified products or even services at their fingertips anywhere and also when they need it, according to research that centers on how banks could recreate themselves in the age of millennial.

These types of defining attributes are just what companies require to bear in mind if they wish to maintain their competitive edge in this climate of lightning-fast technological change. It has not ever been truth than for fintech, an industry I have watched develop into becoming more hands on, easy to use and also amusing, thanks towards the computerization that is advanced AI technologies which has flooded the IT-sphere.

Fintech Business and Millennials

Many fintech businesses have seized upon a distinct segment possibility. They realize that old-fashioned investment and banking avenues are becoming quickly phased down. In reality, 58% of Americans believe that financial institutions will no longer exist in their form that is present within next couple of decades. In reality, a lot of big banking institutions have already implemented mobile applications so that you could match shifting customer styles, which are rapidly moving towards the digitization that is complete of sector. Fintech is using this process a step further by essentially replacing (human) financial advisors with robo-advisors that use big data, machine learning and also AI to basically cherry pick the best investment opportunities for this new generation of investors.

As the Chief Executive Officer of my own mobile app and web development store, I have caused a serious few fintech startups over the very last decade that understand the importance of targeting the requirements of this customer base that is valuable. I’ve been keeping a keen eye on this sector, pleased to see that the market is filling with investment platforms geared toward my generation.

AI, machine customer and learning service anytime, anywhere is where the future is headed. Businesses hoping towards capitalize on consumers changing mindsets, with millennials leading the cost, will need to fine-tune their jump or approach off the bandwagon. Those that have not began automating their services to appease the more youthful generation’s demands for transparency, ease and cool, interactive user interfaces have actually about another couple of years to get up or risk extinction.

 

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