Artificial intelligence (AI) is soon to become commonplace in the financial industry. We are seeing more and more ways to use technology to compare products, transfer money quickly and cheaply and review recent transactions. Using technology in this way means that providers can collect information about clients and potential clients easily and quickly.
Many financial institutions are looking at ways to use AI to increase their productivity, improve customer service, reduce costs and save time. AI can potentially be used to assess large sums of data collected from their existing technology, use this data to spot trends and anomalies, as well as use this information to suggest potential suitable financial products.
The reality is an industry moving towards automated systems, with product selections made by AI rather than people based on factual information.
The question is, are AI based services only attractive to millennials or can providers break through to all generations? In addition, would you trust an AI based service with your money and would you even know if you were using one? Here are some ways AI is already in use that you might not be aware of.
Chatbots are text-based live chats that are run by computers to provide information and answer questions. These chatbots are generally inexpensive to run and requires less coding than creating a banking app. An example of a financial chatbot is Cleo. This is a London-based start-up and is designed to replace all your banking apps. This messenger app provides you with insights to your spending across your various accounts and credit cards. Its aim is to provide means to manage money and recommend ways to save money. It is predominantly aimed at millennials, using Facebook messenger to communicate information.
AI has become savvier at determining if any suspicious behaviour on a customer’s account is due to fraud or not. The AI will detect any changes to your usual activities, and if there is a massive change will notify you of this possible fraud. These changes to activities could be; accessing your account in a total different location or transferring large sums of money to a new account. With many fraudsters producing paper trails that would be overlooked by most people, AI can detect even the smallest of signs to prevent the fraud taking place early on.
AI has been used in the investment world to calculate which shares could provide the best returns in a matter of seconds. These systems allow for a decision to be made, not by theory or predictions, but by precise hard data. With AI having the ability to perform “high-frequency trades” it allows them to make thousands if not millions of trades a day. As such, AI has slowly been replacing stock brokers on Wall Street and may soon form the majority of daily trading.
Artificial Intelligence has so much potential in the financial industry, and with new technologies being created on a monumental scale, it will be interesting to see how the industry will look in the near future.