Artificial Intelligence (AI) in the finance industry is slowly crossing the threshold of experiments and moving into full-fledged adoption. The Covid-19 pandemic has forced most customer-facing services and support to move online, and AI and Machine Learning (ML) tools, along with cloud computing, are keys in handling this need.
Financial institutions such as banks are now on a path of digital transformation, even though some of the core systems in the more established enterprises are still on traditional systems. In this scenario, how do these institutions make the most out of the latest technology to enable a successful digital transformation? What are the impact and critical use cases of AI in finance? Let us explore.
Benefits of AI in Finance
The implementation of ML and AI in finance has three immediate results to show – reduce human intervention in operations, improve security, and foster more resources for innovations.
Reducing human intervention with AI doesn’t mean that there is no need for human activity at all. Automation with AI can help certain processes such as data analytics faster, and decision-makers can act on them quickly. Concerning security, the benefits of AI-powered systems include accurate detection of breaches, informed decisions, and fraud prevention. With the time and resources saved through ML and AI, finance enterprises can also dedicate those resources to develop technology and services that upgrade their offerings, including building stellar customer experience systems.
Furthermore, here are some of the use cases and applications that exist currently and are on a growth trajectory.
Automation in Documentation
Finance industry operations involve a lot of documentation, and it is only natural that automation with AI and ML tools find a prime space in it. Automation in documentation has increased the efficiency, speed, and accuracy of the process. Moreover, these benefits have led to significant cost savings for the companies. AI and ML-powered automation tools in finance are now also capable of client verification, identification, managing and interpreting unstructured data, and reducing overall handling time.
Risk Assessment and Management
Risk assessment and management is a significant part of the operation for financial industries, especially with loans, credit allocations, etc. AI and MLtools are now used in finance to estimate the creditworthiness of parties and whether there are any risk factors involved when it comes to repayment. Previously, institutions verified these using limited data such as credit scores and salaries. Still, with AI, the finance industry can gauge the financial footprint of the customer quickly, leading to more accurate creditworthiness.
Gone are the days when customers had to wait in chatrooms and helplines waiting for customer service representatives to respond. Even if the needs were basic, people had to endure these wait times to get their tasks done. Virtual assistants and chatbots have solved these problems by handling a significant percentage of basic customer assistance tasks automatically. AI systems are now intelligent enough to respond to specific requests, escalate them to human managers if need be, and even respond to customers with a human touch.
Cloud Adoption to Strengthen AI in Finance
AI and ML have made a lot of improvements in the finance industry. The age of experimentation is over, and now it is time to move forward with effective support systems such as cloud computing. An experienced cloud provider can help financial institutions with the cloud adoption process set up and further the digital transformation process. At VEXXHOST, our cloud services are based on OpenStack, making the environments free from licensing fees or vendor lockins. For many of our clients, private clouds are the preferred choice because of their highly scalable and secure nature.
Speaking of private clouds, you can now run on a fully agile and customized cloud from VEXXHOST, with no licensing fees and smooth 2-week migration. In fact, we’re ready to put our money where our mouth is. We’re so confident in being able to save you at least 20% or more on your current cloud infrastructure expenditure that if proven wrong- we’ll give you $1,000 credit to our public cloud.
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