CIS608 - Week3 - Impact of AI in Financial Services
It is eminent that Artificial Intelligence (AI) will have a huge impact on all the service sectors, especially in Financial Services. AI brings will bring of value to the customers in the financial sector.
Many banks already using advanced concepts in AI such as machine learning, predictive analytics.
There are some key areas where AI would help in adding value to the services provided in the financial sector.
- Focus on customer centricity
AI tools can analyze customers spending habits, the area of interests and creditworthiness etc and provide recommendations to the consumer so that best services can be made available. AI can be used to personalize his account based on his needs and the kind questions he/she frequently asks etc.
- Efficiency in operations
Financials sector has huge scope for the improvement in their operations. It can automate their routine tasks using Robotic Process Automation (RPA) and Intelligent Process Automation (IPA).
With the help of AI, operations can be cost-effective.
- Fraud detection
Fraud detection can be done more efficiently with the help of AI. Advanced technologies such as GraphDB, it is possible to identify potential fraud rings, before the fraud happens.
Generally, fraud rings have something in common. Finding that common factor is not possible by human beings. Transactions integrated with AI can help to detect fraudulent activities.
- Generating Alpha
In trading and investment world, finding trends and new opportunities is challenging and risky.
AI comes in handy in this kind of situations. Machine learning platforms can analyze tons of historical data to find out correlations and patterns. It can analyze the trends of market reaction for particular regulatory policy changes etc. All of these activities are not possible to analyze with a human brain.
Reference:
Bhattacharya, Abhishek(05/08/2018).How is Artificial Intelligence redefining the financial services landscape. Forbes India. URL:http://www.forbesindia.com/blog/technology/how-is-artificial-intelligence-redefining-the-financial-services-landscape/
Many banks already using advanced concepts in AI such as machine learning, predictive analytics.
There are some key areas where AI would help in adding value to the services provided in the financial sector.
- Focus on customer centricity
AI tools can analyze customers spending habits, the area of interests and creditworthiness etc and provide recommendations to the consumer so that best services can be made available. AI can be used to personalize his account based on his needs and the kind questions he/she frequently asks etc.
- Efficiency in operations
Financials sector has huge scope for the improvement in their operations. It can automate their routine tasks using Robotic Process Automation (RPA) and Intelligent Process Automation (IPA).
With the help of AI, operations can be cost-effective.
- Fraud detection
Fraud detection can be done more efficiently with the help of AI. Advanced technologies such as GraphDB, it is possible to identify potential fraud rings, before the fraud happens.
Generally, fraud rings have something in common. Finding that common factor is not possible by human beings. Transactions integrated with AI can help to detect fraudulent activities.
- Generating Alpha
In trading and investment world, finding trends and new opportunities is challenging and risky.
AI comes in handy in this kind of situations. Machine learning platforms can analyze tons of historical data to find out correlations and patterns. It can analyze the trends of market reaction for particular regulatory policy changes etc. All of these activities are not possible to analyze with a human brain.
Reference:
Bhattacharya, Abhishek(05/08/2018).How is Artificial Intelligence redefining the financial services landscape. Forbes India. URL:http://www.forbesindia.com/blog/technology/how-is-artificial-intelligence-redefining-the-financial-services-landscape/
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