bankingciooutlook

Financial Industry Adopts AI to Enhance their Services

By Banking CIO Outlook | Monday, May 13, 2019

Financial Industry Adopts AI to Enhance their Services

The financial industry is unpredictable, controlled by continuously varying parameters. Many businesses find it challenging to assess the market and fall into the trap of financial risks. As a result, it has become vital for business organizations to prepare themselves to face any financial crisis. Many methods have been adopted to resolve the problems associated with the financial industry. Even so, there has been little progress over the years.

An emerging trend in the financial industry is the utilization of Artificial Intelligence (AI). Stakeholders, financial consultants, business organizations among other entities are already utilizing AI technology to foresee financial risks and form resilient strategies to deal with them. AI is proving to be a significantly useful tool to deal with financial volatility.

Traditionally, making financial decisions required extensive research. Also, the formulated strategies were based on the intuition of financial experts. As a result, financial policies and tactics were often prone to unintentional human errors. The entire process was complicated,  time-consuming, and expensive. AI  not only reduces the stress and workload for financial professionals; it also eliminates human errors in decision making.

FinTech Companies: 1787fpUrban FTFiservDatanomersSmart CommunicationsSilver Wealth TechnologiesInstitutional Cash Distributors

 Also, a drawback of traditional financial processing is the lack of transparency. Most of the operations are performed manually in different segments of the department. As a result, the clients of financial organizations find it challenging to track their financial processes. But with AI and machine learning (ML), it has become easier for business organizations to streamline the financial operations in the department and provide transparent services to their clients.

As mentioned, the financial industry is rife with risks. Even with stacks of research data, it becomes difficult to track the rise and fall of stocks and shares in the investment market. This instability causes many financial professionals to make wrong decisions, which in turn affects their clients. To alleviate the problems associated with economic volatility, ML has emerged as an effective tool. Financial professionals are already leveraging ML to predict the fluctuations in the financial market and form strategies accordingly, thus reducing the financial risks faced by business organizations and their clients.

Check out: Top FinTech Companies

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