AI and financial services seem to be moving in unison towards a more automated future. Machine learning-based solutions are indeed providing the banking industry with powerful tools to increase its profitability and offer its customers ever more relevant functionalities.
From recommendation engines to predictive analytics, voice recognition and optimized response times, such actors as Dreamquark have put incrementally efficient instruments at the disposal of financial organizations. These innovations are shaping a renewal of the sector and point to AI and financial services working hand in hand to find increasingly compelling use cases for the technology.
How Will AI Impact the Future of the Finance Industry?
The everyday interactions of big banks produce heaps of data which, if interpreted correctly, holds the potential to transform the industry. Business performance may be improved at a fundamental level by implementing AI-derived recommendations. This means that the gap between mass adopters and those that do not integrate machine learning into their models will result in the latter being left behind, at the risk of disappearing altogether.
As integral as AI and financial services will be for some fintech organizations whose goal is to create entirely AI-based solutions, those with a more traditional offering will instead focus on enhancing their existing products. While these two categories of services will undoubtedly coexist for a while, only time will tell if autonomous decision-making systems will ever truly take over. Many anticipate that it will, and foresee very tangible transformations happening at various levels, including workforce, stakeholder value, compliance and fraud detection, process automation and, perhaps most of all, in customer service.
As for the line between expert data scientists and citizen data scientists, it will likely become increasingly blurred by the improvement of the relation between AI and financial services.
How Will AI and Financial Services Affect Individuals in the Future?
Getting to know the customer better and better is certainly an area where AI and financial services can work together towards building more satisfaction and more loyalty. One may think that, as they provide a less personalized service, bots would be despised by customers. Yet, this does not seem to be the case in a context where not having to wait for an actual person to become available to answer a relatively simple question is much appreciated.
Security is another area where automated solutions are especially relevant. In addition, blockchain technology is poised to revolutionize business functions by promoting more transparency at a lower cost. This will greatly benefit the end user who will enjoy faster-than-ever transactions without sacrificing security.
Thanks to deep learning, personal finance will be made more spot-on and digital assistants, having access to highly specific insights, will provide targeted, effective advice. Automation will likely become the norm, and these AI-enabled helpers will be able to handle a customer’s account in keeping with that person’s short- and long-term goals.
The decisions affecting their investments will also be greatly aided by AI and financial services working conjointly. For example, knowing whether it is more interesting to pay off a mortgage quickly, to save or to invest will no longer require having to meet a financial adviser in person. In addition, contrary to said meeting which can only result in providing a relevant analysis at a given point in time, a virtual personal adviser could keep tabs on the data constantly. It could therefore inform its client the second a different approach may be more suitable to their objectives.
Naturally, these functionalities do come with their own concerns, pertaining for instance to privacy. In fact, this is where most of the work lies to create a world where AI and financial services are fully intertwined.