February 25, 2021, Prince

5 ways AI is transforming the financial sector!!!

As they say that change is the only constant in this world, we should now adapt ourselves to the frequent use of AI in probably every important sector. Artificial Intelligence is now starting to take an irreplaceable position in the financial sector too. Google, Facebook, Amazon, and every big tech company is already using AI to enhance their user-experience. And now, the financial sector is all set to use AI to transform this sector completely.

Here are five ways AI is transforming the financial sector:

Credit decisions

The biggest question of the financial sector still stands, “Is this the right person to give credit?” If yes, then how much credit is risk-free, and for what time period?

Currently, banks are spending their huge manpower in checking the credit-worthiness of a person by checking their previous records and current earning. This step which seems to be an easy single step consists of multiple sub-steps which require continuous checks costing banks a considerable part of their money. AI is currently deployed in this field, lending a helping hand by creating predictive models of individual income-earning and relating it with their repayment capacity. Basically, AI is fed a massive chunk of data, and through its deep learning, AI is helping banks to fasten this process.

Fraud Detection

Did you know that Statista has projected that in 2021 the Digital Payments is projected to reach US$6,685,102m?

The financial sector is struggling with multifarious kinds of frauds, and to stop them, we now have Artificial Intelligence. Artificial Narrow Intelligence, a subset of AI research, is specifically designed to find patterns in any financial transaction. Any abnormality in a transaction creates a suspicion which triggers Artificial Intelligence to look deeper into the transaction.   

Intraday or Swing Trading

This one field is the most interesting field and attracts a lot of visitors. Big financial institutions rely on big computer algorithms and data scientists to determine the upcoming trend. This future prediction of the stock market (or any other alternative market) is based on the previous data. Artificial Intelligence can analyze decades of the stock market trends and provide reliable predictions through its deep learning. AI can provide solutions to your financial problems according to your risk appetite.

Personal Finance

Most of the people when they earn money don’t even know how to invest their hard-earned money. Personal Financial Management is missing in most of the millennial generation. Therefore, Artificial Intelligence provides a reliable and trustworthy pathway to all your financial problems. Artificial Intelligence nowadays can analyze your risk appetite and spending pattern to provide you the best financial advice.

Chatbots

This development in the field of AI is helping the financial sector a lot. Financial Sector is now using AI-based Chatbots to decrease the workload on their employees. Gone are the days when they had to hire thousands of customer care assistants to take customer’s call. Now the AI-based Chatbots can solve customers’ problems without any human assistance.

Concluding Note:

Still not adapting to Artificial Intelligence is nothing but stupidity. Without any doubt, AI is going to completely transform the financial sector in the coming years. Big financial institutions are currently spending hundreds of thousands of dollars to build efficient AI systems to help them gain a huge chunk of profits in the long run. They have understood the power of AI. When will you understand it?

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