How to use AI in Financial Services?

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Artificial intelligence (AI) technology automates traditional processes and provides improved capabilities to financial institutions in the areas of banking, capital markets, insurance and payment processing.

Artificial intelligence (AI) technology helps automate traditional processes and provide increased capacity for financial institutions.

The role of AI in financial institutions

The financial sector is highly competitive and subject to strict sectoral regulations. These sectoral dynamics strongly influence the way fintech development is adopted within the sector and require financial institutions to constantly identify new opportunities to stand out through technology.

This dynamic has created an opportunity for artificial intelligence, a powerful technology that allows PCs to predict future results by relying on previous data sets to increase efficiency and enable new customer experiences.

AI in the banking sector

In the banking sector, artificial intelligence helps companies automate business-critical processes, such as risk management and fraud prevention, while unlocking new capabilities, such as the use of chatbots and intelligent recommendation systems for retail banks.

Fight against financial crime

Banks are bound by a complex set of laws and programs designed to uncover the financing of criminal activities, both nationally and internationally. For example, the International Monetary Fund, as well as the United States and other countries, have established anti-money laundering (AML) regulations, requiring financial institutions to maintain ML programs and report suspicious activities.

Although many of these regulations have proven costly for banks, they have been largely ineffective in preventing or deterring financial crime. Existing hardware has proven to be an obstacle to success, as old systems do not have the scale to fight threats and manage complex databases across several business units. In addition, anti-money laundering measures increasingly require real-time analysis to enable faster transactions or to support online capabilities.

As a result, companies are turning to artificial intelligence to navigate industry regulation and increase their efficiency through real-time analysis.

The connected branch

In addition to modernizing traditional processes, artificial intelligence can be used to improve the customer experience through new services and capabilities. In the field of retail banking, the latest technologies allow banks to understand customer needs and offer personalized banking services, adapted to each individual.

Within the agency, AI-based computer vision solutions help bridge the gap between the physical site and digital channels, including on-site kiosks. For example, computer vision-based sensors can track customers’ eyes, posture and actions, assess wait times and alert bank employees when a customer needs help. These AI-based solutions analyze behavioral data from agencies and online channels. The resulting intelligence is used to individualize and optimize the purchase, placement and pace of displays and marketing campaigns.

AI in the capital markets

Artificial intelligence is also used by financial institutions operating in the capital markets, including asset managers and hedge funds, to improve their efficiency and deploy new capabilities. Technology is often used to support risk management processes, in addition to optimizing trading strategies for a variety of financial instruments.

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