Are you in the finance sector? Frustrated with IT Management and just want systems that work and make your life easier? Are you a Leader of a finance company and want to keep employees happy with great systems that help them to become productive and efficient? In this article, we’re going to cover 5 benefits A.I has for the finance sector, why A.I is the next big thing and can hopefully tackle IT Challenges finance instutions face.
Key Issues Faced in Your Industry?
We’re aware that in the Finance Sector, there are many issues with customer experience and making sure customers have the best interaction with the services and maintaining a good relationship. The finance sector wants to maintain customer trust, want to prove to customers that their data, information and property is safe with them and that any issues they have can be resolved quickly. There is a lot of pressure in the finance sector and we want to ensure both organisations and customers have a hassle free, stress-free experience whilst saving on costs at the same time – so everyone’s happy.
‘’Companies that offer Best-in-class customer experience grow faster and more profitable. To reach this level, insurers and Financial services firms must relentlessly improve customer journeys across channel and business function.’’
Mckinsey & Co
What is Artificial Intelligence?
Artificial Intelligence is a buzz word you have probably heard but may not know exactly what it is. Well don’t worry, we’re here to help you learn the ins and outs of A.I and why it’s worth investing in for you finance business!
The first type of A.I of weak A.I, this system helps users to fulfil or accomplish a task and is designed to solve specific problems. A.I developers create rules and set boundaries, so it doesn’t go beyond the rule set. This is important as businesses must be responsible when using A.I technology and ensuring it doesn’t have any negative consequences or cause problems that weren’t intended.
Strong AI can be compared to a human, as it has cognitive functions and is designed to complete narrow tasks and act intelligently. A great example is Siri. When we ask Siri a question, it scans the entire internet database to find relevant information to us.
How Can A.I Solve these IT Challenges?
So why A.I? Well the reason why A.I is so successful is because it is so efficient, it’s known to cut task time in half which is so useful for organisations when they want to reduce costs and speed up their processes. The finance sector is constantly under pressure increase usability and efficiency, and this is the forefront technology available now that can really make a huge difference internally and externally.
Fraud Detection and Management
Every finance business wants to minimise risk as much as possible. Financial sector take security very seriously, they require technology that can detect fraud and take action. A.I has the capability to analyse unusual behaviour and flag it as suspicious – for example, it can identify that a person who lives in the UK, last transaction was in the UK, seconds later other transitions in the US. A.I can identify that an individual is not able to travel that distance in a short space of time and identifies it as fraud. A.I technology is also constantly learning, so it can make more sophisticated decisions in the future, so A.I just gets better and better.
A.I has the capability to get millions even billions of records to come up when making recommendations of loans and credit, instead of going through data manually looking for loan repayment habits or number of loans active. A.I is great for this as it can instantly access what is going on and looks at risks rapidly by scanning mass amounts of data to make accurate decisions. In comparison to a human, this would take a huge amount of time and run the risk of making an error that may costs millions.
Now this point may sound crazy and a bit like a Hollywood movie, but it makes so much sense! Why not invest in “Robo–Advisors” that help deal with customer queries or issues, to help reduce the pressure on the human workforce so they can deal with the more important stuff? According to the Ubisend study in 2017, 34% of executives say the time they freed up their time using chatbots allows them to focus on deep thinking and creating. (PwC, 2017) We are not saying robots should replace humans, but work hand in hand to ensure customers have a good experience with the organisation.