Intelligent Technology: Making Fintech Smarter - Pune
The financial industry was one of the first to adopt and appreciate the benefits of <a href="https://fintecbuzz.com/?s=artificial+intelligence">artificial intelligence</a> (AI). The annual budgets of large banks amount up to billions of dollars, which is comparable to the state budgets of some developing nations. No surprise that banks and financial organizations will be the key drivers of AI R&D in the <a href="https://fintecbuzz.com/">FinTech</a> industry. From amplifying customer service to transforming wealth management, financial institutions appear to be waking up to the reality that intelligent technology will be a driving force in the digitization of the financial sector. They will also be the ones to bridge the AI knowledge gaps across other industries and support the FinTech business ecosystem.
The largest and most successful credit organizations have already created official AI strategies.
The majority of the strategies imply that internal or outsourced AI departments and teams be launched. As per the forecast of Autonomous Research, by 2030, Intelligent technologies will enable banks to decrease operating costs by 22%. In the long-run savings of financial institutions can reach $1 trillion.
Simultaneously, an acute problem for large banks is the absence of qualified AI developers and data analytics specialists. The lack of developers can hinder the development of technology in many sectors, with FinTech being damaged the most.
The previous wave of FinTech startups and customer applications in the field of financial services was associated with the proliferation of smartphones. At around the same period, the term “FinTech” itself emerged. Smartphones permitted FinTech projects and leading banks to take advantage of customer location determination, encryption, secure remote access, digital signature, etc. As public and private cloud computing <a href="https://fintecbuzz.com/platforms/">platforms</a> came into existance, work with financial data became streamlined and facilitated.
AI and FinTech
Artificial Intelligence gave birth to a new wave of applications and services in the market of finance. Since AI can handle unstructured data such as images, audio, video, location, and time-series data perfectly well, there are AI-based solutions already that are capable to detect fraud, assess creditworthiness and risks, recognize an individual based on his/her digital footprints, etc. In the insurance sector, they help automate claims cases, identify <a href="https://fintecbuzz.com/insurance/">insurance</a> fraud, and improve risk management.
By utilizing AI-driven chatbots, banks can take their customer experiences and customer relationships to the next level of maturity, as they help personalize UX in real-time and in the most proficient way ever.
Another AI product category that is extremely popular among banks, and financial organizations is a virtual assistant. Just like bots, they help walk the client through the services and products of the bank and, thus, improve the user journey, provide insights and set specific calls-to-action to increase goal conversions.
Let’s have a look at some of the most exciting Intelligent Technology initiatives launched by banks and financial organizations.
How Banks take advantage of Intelligent Technologies
FinTech has taught banks to be customer-centric and to foresee future needs. Just like Tesla is something more than just a vehicle, so are banking services, they become whole ecosystems. As clients, we are fortunate, at this moment, someone is creating a new smart robot consultant which will tell you who to invest in and will utilize the voice of your dad to make the recommendation as personalized as possible. That is the manner in which AI helps banks and FinTech startups gain a competitive edge and make a difference when it comes to customer experience.
JP Morgan: utilizes Artificial Intelligence to automate the analysis of loan agreements. The bank recently launched the COiN (Contract Intelligence platform) which enables clients to analyze such agreements, highlight the important terms and conditions, as well as significant data. Formerly, this work required 360 thousand man-hours to complete.
Wells Fargo: announced the formation of an exclusive team for Intelligent technology that will be engaged in developing innovative <a href="https://fintecbuzz.com/payments/">payment</a> technologies and improving services for its corporate clients. Specifically, the AI team of Wells Fargo will work on creating technology that can help the bank provide more personalized online customer service.
Current projects assigned to the AI team of banks range from systems that can detect payment frauds or misconduct by employees to technology that can make more personal recommendations on financial products to clients.
Bank of America launched Erica, an AI-based virtual assistant that is planned to be integrated into a mobile application and various ATMs all over the country.
Citi Bank: has recently invested in numerous AI-based projects and startups like Feedzai that uses AI to detect and fight fraud in online <a href="https://fintecbuzz.com/banking/">banking</a>. Another example is an organization called Clarity Money that leverages the power of Artificial Intelligence to help clients choose financial products and manage their assets.
As per a press release, ‘The machine learning technology of Feedzai will automatically adapt controls to monitor discrepancies and changes in the payment behavior of a customer, allowing for the analysis and recognization of potential aberration in affected payments before they are forwarded for clearing. It will do this while securing that payments are processed quickly and efficiently’. Citi foresees to launch its innovative solution very soon.