Inventions and innovations are meant to make life easier for us. In technology, a real game-changer has come to the fore to amaze us all with its ability to scrutinize billions of data points, look for trends and patterns, and predict future patterns beyond man’s comprehension. It is called Artificial Intelligence. Given its complexities, how AI can come up with decisions is hard to explain but people are beginning to trust how it works. But in the financial realm, it is still a long hard climb. By presenting use cases, convincing non-believers is not far off.
1.AI and Banking
AI in banking can be automated to understand and manage complex rules and regulations including creating personalized financial reports for individual clients. AI can answer in a moment what financial professionals can after days and hours. It can save wealth managers a lot of time and energy in providing advice and information to more of their clients in simple, understandable language. With AI assistance, bankers will be able to make fast decisions regarding loan applications in matters of seconds compared to months of assessment. AI can research client history quickly and with improved client experience, loan applications are bound to increase.
2. AI and Reporting and Analysis
AI has the ability to analyze client’s personal account data and analyze their financial performance, make recommendations, and assist in automation for budgeting and saving for a healthier financial status and behavior of the client. AI makes it possible through mobile banking apps and web portals. AI examines cash and credit accounts, including investment accounts to analyze an individual’s overall financial health in real-time, and creates customized advice according to new incoming data. Some AIs are able to execute advanced analytics for financial institutions anytime and anywhere to assist in key business decisions through mobile devices, laptops, and computers. This was not the case without AIs ten years ago.
3. AI and Transaction Data Enrichment
Transaction Data Enrichment powered by AI works both ways for the company and for clients. AI and machine learning are TDE’s instruments in deciphering cryptographic characters representing merchant transactions and converts them into readable texts of merchant information details like merchant location and where money was spent with whom. Customers will be readily assisted with their expense history, thereby reducing fraud investigation expenses when bill charges on credit cards cannot be explained or are questionable in nature. AI, thus, puts financial data into context by categorizing and analyzing client’s spending habits, and credit scoring, predict earnings in the future and address spending issues.
4. AI and Predictive Analytics
Like almost all aspects of life nowadays are teemed with coaches, so is financial life. Personal finance coaching is on the rise with clients wanting to be advised how they make use of their funds. Financial forecasting tools that AIs can produce charts on when to spend money based on income, balances, and obligations. With AI, clients can make smart decisions based on their present financial standing.
5. AI and Chatbots
Chatbots can be automated to perform simple tasks like opening a new bank account or money transfers from account to account. It can perform 24 hours a day ready to assist clients anytime to answer queries, paying bills, or processing an application. In short, AI can enhance transactional engagements on behalf of the bank.
Artificial Intelligence in finance still brings about a number of plus points:
AI is the future of finance we are already experiencing now. We have not fully trusted its capacity yet for unfounded fears of an AI takeover and human-like decision-making abilities. But with developers working for a safe AI deployment, we will be better with AI in the way we handle our finances, to start with, as many other use cases in other fields would attest to a lot of AI promises already delivered.
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