Why Does the Finance Industry Love AI?
While billions are being invested in AI by the businesses all over the world, every industry seems to be reaping the benefits of this technology. The finance industry is no exception to this. Facial recognition, machine learning, chatbots, natural language processing- the many faces of Artificial Intelligence have been utilized by the finance industry in the very basic form since a long time. And now things are progressing in favor of AI.
AI is Taking Personal Finance and Wealth management to the Next Level
The virtual assistants on the smartphones can now do more than just open apps and answer questions. This feature is tapped by some of the personal finance apps. Some of the major banks have now incorporated AI powered assistants to interact with customers. These can work with the customers and help with the day to day financial transactions. When you feed your credit and debit card details to the AI powered assistants they would be able to do the background work of analysing your income and expenses. They would be able to identify your expenditure and find out where you spend the most. So the assistants would provide financial assistance and talk about the suitable investments that would profit you the most. We also find AI based budgeting apps. These help track personal finances and help in framing monthly budgets. Especially, when there are any loans in progress these can come in handy. The AI based assistants for personal finance would rule out the chances of emotion driven decisions. They can also help process huge volumes of data with utmost precision. And in the long run this can help improve the personal finance. So, AI based assistants can indeed work as great financial advisors.
Chatbots and Other AI Applications in the Banking Sector
The banking industry was one that was the most reluctant about the adoption of AI based services. But this is one industry that is benefiting the most as well. There are AI powered chatbots which can clarify customer queries and talk about the various products. The banking industry is one where the customer service team has to be available all-round the clock and chatbots can be perfect for such instances. Chatbots can also make it easy to initiate payments and track the credits as well. They can also be used to automate bill payments.
AI in Banking industry is using more than just chat bots. They now find that to sustain in the competitive market incorporating AI based systems is now a necessity. And with the volume of data to be handled increasing continuously data analytics can be made more practical with the help of AI. It can reduce the workload and improve the efficiency of the bank employees. And we also see that banks now offer a wide variety of services to suit people in various income groups and every type of spender. So handling all these products and services and tracking customer behavior is very difficult without AI. AI based bots also help the banks make sure that they offer the customers the best experience through the prompt and relevant interactions.
AI in Trading
While there are still many who prefer trading the conventional way, with brokers there are several traders who have switched to online trading. We have online trading bots that can totally take control of your stocks. These bots allow people with zero knowledge about the stock market to invest in the stock market. These bots would be able to watch the market round the clock and thus help the user take crucial decisions. These trading bots can prove beneficial in both short term and long term trading. Whether you choose to trade in Forex or binary options or any form of trading for that matter you would be able to find smart trading bots for each of them. No matter how experienced a trader is, it is impossible to watch the market 24×7. Trade Bot would help gather real time data throughout the day and thus make it easy to understand the market trends.
AI Systems Fetch the Best Returns for the Finance Industry
Be it to reduce fraud or to help in cost cutting the roles played by AI powered systems are pretty important. While we always talk about AI in the customer facing interfaces even within the finance institution there are several places where the technology is being used. Process automation when adopted in any industry first helps in cutting down the costs. It can also instill essential redundancy to overcome human errors and to obtain a clearer picture thanks to the repetitions. The same benefits apply to the financial institutions as well. They help in cost cutting and can thus prove to be the most valuable investments. The convenience simply makes it even more attractive. Fraudulent transactions are inconvenient for the customers. But they prove to be a costly affair for the financial institutions. AI systems can help reduce and eliminate fraud and thus remove the cost incurred in tackling these situations. They can improve the security remarkably.
The Challenges that Lie in the Path
While AI does seem to be a productive investment for the finance industry there are several challenges that it would have to survive, besides the evident skepticism in some areas. Especially with the AI trading bots some believe that these have increased the volatility of the market. And in the name of trading bots we also find a lot of scams that making things graver. AI systems can be integrated to blend with the existing systems without too many changes in the infrastructure. But this is something that would definitely take some time. And it would also require a widespread acceptance of the digital economy. Once the banks and other finance institutions grow out of the doubts regarding the use of Artificial Intelligence the customers should be willing to accept digital transactions as well. Only then would the technology really prove successful in the finance sector in the coming years.