3 Practical Applications of AI for the Future of the Financial Services Industry
Artificial Intelligence (AI) promises to be the breakthrough technology that will change the way we work and live. In fact, 48% of global CIOs plan to adopt the technology within the year, according to Gartner. Businesses are very well aware of the importance of digital transformation and recognize the significance that AI brings to the table.
Here are 3 practical applications of AI that the Financial Services industry uses today:
One area AI is seeing provable and meaningful results in business is in augmented intelligence. This combines the analytic capabilities of AI with the human capacity to understand context and empathy within a work setting. A real-life example of augmented intelligence can be seen within financial institutions, when a loan officer evaluates a business loan application. Processing these loan applications requires a high-level of knowledge and understanding. The loan officer must determine whether that business is a good risk based on both their understanding of the individuals involved, and prescriptive guidance delivered by an AI software evaluating a myriad of financial and market factors.
Digitization and Streamlining Credit Processing
One of the banks on the forefront of the AI revolution is DBS Bank. They plan to arm 3,000 of their employees, including senior leadership, with the basic skillsets in AI and Machine Learning (ML) by the end of this year. In recent years, DBS Bank was tapping the use of automation and AI to address inefficiencies and be more preemptive in meeting customer needs. By using data analytics and ML, DBS Bank is able to streamline credit processing and risk assessments, as well as recommend self-service digital options based on its retail customers’ digital footprint.
Digital Assistants and Chatbots
A Canadian bank is using AI, ML, and Chatbots to enhance its customers’ banking experience as well as internal operations. AI and ML technology extract important intelligence in less time that a human processing the same information. This leads to digital assistants and chatbots being able to answer questions in less time and with more accuracy.
Overall, the key component for Financial Service Institutions is to use the power of Artificial Intelligence and Machine Learning to deliver the best customer experience. However, according to the prediction of Autonomous Research, AI technologies will allow financial institutions to reduce their operational costs by 22%, by 2030. Moreover, a recent Forrester report shows around 50% of financial services companies already use AI globally and the number is expected to grow with newer technology advances. With rapid technology changes and evolving customer expectations it is very important for institutions to embrace AI and ML as a way to deliver the best customer experience possible and reduce operational costs.
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