AI technology implementation in the finance sector cannot be avoided at this time. Lots of information, data, financial transactions, and new problems must be analyzed quickly and precisely.
If we only rely on human manual work, it really takes time and tends to be more inefficient. But with AI, or artificial intelligence, long and complicated processes can be shortened in such a way.
The following are examples of AI implementation in the finance industry that we should be knowledgeable of:
1. AI to enhance payment security
AI technologies implemented in the financial industry that we frequently encounter are Facial Recognition and Fingerprint features in digital banks. This feature aims to provide extra security for financial transactions.
Facial recognition and fingerprint features have been recorded on the physical face or unique finger line of the account owner as a transaction requirement.
2. Fraud prevention
In the financial industry, especially banking, fraud is a common problem. One example is phishing, or attempting to gather personal information in order to get access to the victim’s account.
With AI, that phishing risk can be minimized by detecting suspicious activities in financial transactions, such as unusual amounts of transactions to anomalies in expenditure recapitulation.
After those patterns are detected, the system will notify the victim through SMS, email, or telephone directly.
3. Customer service 24/7 in the banking business
Before the advent of AI, we could only visit branch offices to express complaints and problems with banking services. But now, everything can be done anywhere, at any time, even 24 hours non-stop.
Because of AI, new services have been created, such as virtual assistance and chatbots, which can respond to customer complaints quickly and accurately.
Not only can AI in customer service assist us solve problems, but it can also help us perform crucial tasks such as checking account information and making payments.
4. Credit scoring
Financial institutions or banks will not grant loans to customers easily. To minimize the risk of failure to pay, they will check the credit score of the borrower candidate first before disbursing funds.
In this case, AI can be used to analyze customer credit risk by collecting and analyzing borrower candidate data. The data that can be seen includes credit history, demographic data, and borrower candidate behavior.
An AI algorithm will read the historical data to generate an accurate credit score so that credit-granting decisions are more precise.
5. Consumer insight
The financial business needs consumer suggestions or feedback on their products. This feedback is necessary for service development to be more effective.
In this case, artificial intelligence (AI) takes on the role of managing the many consumer sentiments through the review of a product. That review will identify and analyze the product to determine whether it is acceptable in a positive or negative sense.
The company could use the results as a chance to improve product quality or develop new, more accurate products.
6. Bank Statement Analyzer
The role of AI technology in the financial industry has many positive effects. AI able to make process of generating bank statement report automatically.
An AI system can analyze every financial transaction in a bank statement to produce an accurate analysis. This definitely reduces the possibility of human error.
An example of AI implementation in bank statement analysis can be seen in the Intelligent Document Processing (IDP) solution from Fintelite, which you can see it in action by booking a demo. This IDP solution allows us to automatically turn multi-page bank statements into in-depth insights that help inform further decisions.
How it works is easy, just upload a photo or digital PDF, and the data will be swiftly processed by machine learning into an ideal financial report.
7. Determining a personal finance strategy
AI is capable of collecting and analyzing personal financial data such as income, investments, and historical expenses. So it can be seen which spending items are the most draining on cash.
After knowing which expenditure items were wasteful, AI then manages cash data as a personal suggestion or recommendation to improve good financial management.
Besides that, AI can assist with long-term financial planning based on personal financial histories and see how particular financial decisions may affect goals in the future.
8. Analysis of stock market trends
AI can also be used in the stock market and investments. Things that can be predicted with AI include market movements, market behavior patterns, interest rates, and currency movements.
By utilizing sentiment analysis techniques and big data, AI can provide more accurate investment recommendations in real time, especially for investment managers.
AI technology in the financial industry keeps advancing data security
That is an eight-example of artificial intelligence technology in the finance industry. In general, artificial intelligence has assisted the financial industry in enhancing effective service, efficient work processes, and reducing bad risk.
Despite the fact that AI collects millions of data, we do not need to be worried about data misuse, because AI implementation has considering aspects of user data security and privacy.