Ways of applying artificial intelligence to the financial sector

Technology has become the greatest ally for companies in all sectors and among those that are having the most influence is the financial sector. Currently, there are different applications of artificial intelligence to the financial sector that are making a big difference both internally and externally.

Among the different applications of this technology are those created to improve the relationship between the client and the bank itself. A clear example of this is the use of chatbots and virtual assistants to be able to respond more quickly to different problems.

In addition to this, the integration of artificial intelligence is making it possible to automate and industrialise different tasks that were previously carried out by the company’s staff. There is no doubt that AI is revolutionising the sector.

Artificial Intelligence applications in the financial sector

1. Virtual assistants

These solutions help the client in making different financial decisions, facilitating the realization of transfers and payments. In addition, it also allows them to keep up to date with the different movements and balances (without the need to have an app installed on the device).

Having a virtual assistant in the financial sector will bring many advantages, among the most important are:

• Offering all kinds of specialised services
• Increases both customer satisfaction and confidence
• Optimizes user response times
• Increases the level of employee productivity
• It allows to know better the needs of the customers.

2. Credit Scoring

This solution allows for greater precision, automation and speed. It consists of a combination of algorithms and ‘big data’ in order to promote more secure credits.

The benefits of this type of solution are :

• It allows online operation, reducing the costs of face-to-face customer service.
• It optimises the credit validation process, allowing a greater volume to be validated at the same time.
• The time spent reviewing credit applications can be optimised.
• Facilitates greater transparency in the allocation of credits.

3. Fraud control

The application of artificial intelligence in this sense, allows the recognition of different patterns to identify and prevent fraud as well as different risks.

In addition to this, it also allows for many other benefits:

• It allows the analysis of a large volume of data in real time.
• It is a system that learns and creates models to detect fraud practically automatically.
• It analyses user behaviour, detecting whether suspicious activity is taking place.
• Thanks to the Big Data, it detects and prevents the entry of money from illegal sources

4. Automated investment funds

Using artificial intelligence and big data, the financial sector can analyse all available information. In this way predictions can be made, recommending where and how much money to invest.

The benefits of AI when applied to investment funds are:

• The ability to process a large amount of information 24 hours a day, 365 days a year
• It is a solution capable of making purchase or sale decisions on its own
• It takes the possibility of human error out of the equation
• It analyses, uses and processes information from different sources to base its predictions
• In other words, these solutions use AI and ‘big data’ analysis to analyse all available information in order to make predictions and decide what to invest in.

5. Robotic consultancy

This solution uses automation to be able to advise clients in a personalised way. Users can be guided according to their needs and profile.

Among the main benefits we can find:

• This solution reduces the time spent on information and decision making.
• It allows clients to make estimates with their finances.
• It provides clients with a deep and precise vision without the need for large investments of time by the company.
• It allows easy access to updated reports and predictions.

6. Intelligent insurance

An artificial intelligence solution designed for the insurance sector will be based on data analysis. In this way it is possible to process a large amount of information that is analysed, offering precise results, reducing costs and risks.

Some of the benefits of AI in the insurance sector are:

• Improved customer experience and better service
• It allows you to create a better customer profile.
• Facilitates more accurate risk assessment.
• Optimises time during claims.
• Accelerates the evaluation of fraudulent claims.

The transformation of the financial sector thanks to artificial intelligence

According to the figures advocated by the World Economic Forum, by 2020, global investment in artificial intelligence technology by financial companies will be $10 billion. Without a doubt, this is a significant investment, which means the implementation of this type of technology in many companies in the sector.

It can be said that the financial sector sees AI technology as a way of providing more efficient and secure services. Over the next few years we will be able to see automation, reports and anomaly detection almost in real time.

According to the IDC consulting firm, it is estimated that in 2022, 25% of companies will use conversational speech technology in applications related to the customer experience. And by 2024, AI-enabled user interfaces and process automation will replace a quarter of today’s screen-based applications. (also according to IDC consulting firm).