A naukri.com initiative
Medium
2d
103
Image Credit: Medium
How How Artificial Intelligence Will Change the Finance Industries
- AI is changing the finance industry by improving client services and operational efficiencies.
- Bank of America's AI 'Erica' has facilitated over 1.5 billion interactive experiences through its banking app.
- AI in banking enables interactive conversations, automation of processes like loan approvals and credit scoring, reducing time and potential human error.
- AI systems in banking also assess customer behaviors and provide recommendations for financial behaviors like budgeting or investing.
- The investing and wealth management sectors have experienced a digital transformation with the rise of robo advisors using machine learning algorithms.
- Robo advisors are projected to reach over $2 trillion in global assets under management by 2027, offering low-cost personalized portfolio management.
- AI allows institutional investors to analyze large amounts of market data, news articles, and sentiment simultaneously, improving decision-making efficiency.
- AI plays a crucial role in fraud prevention by identifying normal and suspicious behaviors rapidly, reducing fraud loss and false positives.
- AI-powered fraud detection systems have shown detection rates 50% higher than traditional systems, aiding institutions in compliance with regulations.
- Financial professionals need to consider risks such as algorithmic bias, privacy data reliability, and governance frameworks as AI roles evolve.
- Despite risks, AI is expected to create a more secure, responsive, and inclusive financial ecosystem for both institutions and individuals.
Read Full Article
6 Likes
For uninterrupted reading, download the app