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The Changing Picture of Financial Sector under the Effect of Artificial Intelligence

By Banking CIO Outlook | Tuesday, July 16, 2019

AI in BankingArtificial intelligence has opened up many new possibilities for the financial industry, giving it a modern makeover.

FREMONT, CA: The traditional ways of banking have been swapped with advanced, technology embedded methods. Artificial Intelligence (AI) has a significant role in the whole transition process going on in the financial sector these days. All stakeholders in the business, as well as the consumers, have directly or indirectly benefitted by improvements owing to adoption of AI. Listed below are several ways which make AI's application very apparent.

AI in the Products

Financial firms are working on many products that have AI incorporated into them. Previously, most of the technologies were adopted for business advantages of the company, but AI-driven products have made a shift towards a customer-centric approach. These are expected to create better user experiences and drive growth, as well.

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Improved Asset Management

Data analytics is a powerful tool, and making asset management companies are in a position to leverage the analytics capabilities of AI in improving business decision making. Machine learning and big data analytics are assisting companies in making smarter decisions for clients. The data-centric approach ensures fewer risks and better results.

Reduction in Human Labor

Many of the repetitive tasks that employees have to carry out in financial firms are now being transferred to machines, thanks to AI. Algorithms that can do the same job at a much cheaper cost are here, and this is subsequently reducing costs for the companies as well as the customers. Despite this, the replacement of workers with automation will take time, and job requirements for many employees will change but not be completely wiped out.

Greater Personalization

Proper utilization of data through AI-tools provides insights into consumer behavior. This insight, when taken into consideration, enables firms to design products and services as per the requirements of individual customers. Personalization, according to customers, is the best way to escalate profit margins and enhance customer satisfaction at once.

Artificial intelligence is making way for a smarter and better financial sector. Firms taking advantage of technologies will be able to reap the benefits at the earliest.

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