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Financial Sector- 6 Artificial Intelligence Ideas to Disrupt Banking

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Financial Sector- 6 Artificial Intelligence Ideas to Disrupt Banking

For decision-making and information discovery, artificial intelligence is a new approach. AI is able to bridge the gap between the intent of big data and the reality of practical decision making. AI is inspired by the way human brain processes and experiences into learning. AI can also draw conclusions like the human brain. Natural Language Processing (NLP), Machine Learning (ML) and Artificial Intelligence (AI) are now no longer experimental concepts. To aid real-time decision-making AI can drive insights. There are new technologies, new advancements and new opportunities in AI each week. To grow, a business should keep pace with all these exciting developments.

In order to improve business engagement, financial servicing companies and banks must embrace artificial intelligence. AI can automate routine tasks, provide better strategies to work and generate better insights for future planning.

Here some AI ideas are enlisted that are disrupting banks:

Fraud detection and prevention:

On the historical behavior of account owners, AI establishes patterns. An alert is generated indicating the possibility of fraud when an uncharacteristic transaction occurs. By analyzing historical transaction data, ML can detect fraudulent patterns. Using anomaly detection AI can detect financial fraud.

Cognitive-automation technology recommends action for suspicious transactions. KYC compliance software is being used for identity verification.

 

Automatic risk and finance reporting:

Businesses can map out simple, rule-based processes and have a computer carry them out on their behalf based on Robotic Process Automation(RPA). AI programs can make subjective decisions in response after reading and understanding text or unstructured data.

Whilst reducing costs, banks can meet regulatory reporting requirements at speed.

 

Customer Service chatbot:

Banking chatbots are very advanced, they can track spending patterns and behavior of a customer. A chatbot can even tailor recommendations to customers about finance management. Customers can smoothly perform routine financial tasks using chatbots. Chatbots can also improve finance management by providing simple insights.

Chatbots curates targeted offers to specific customers that can increase customer engagement and satisfaction. Chatbots provide the most relevant answers to customer queries.

 

Intelligent mortgage loan approvals:

Through kyc document verification, AI can verify the applicant’s identity for job and determine whether the bank can offer pre-approval or not. On the basis of risk scoring, AI can determine loan terms. It can improve conversation by developing a relevant strategy. For applicants, it can provide real-time text and voice support via chatbot.

Based on a wide range of loan-level characteristics at origination(Credit score, product type), it can also calculate mortgage risk.

 

Credit risk management:

By analyzing news and business networks AI-based software allow more accurate and instant credit decisions. This system can provide mitigation recommendation and can also be used to improve Early Warning Systems (EWS).

 

Automate daily banking:

AI and ML can automate repetitive daily tasks and intensive decision processes. To derive deep and actionable insights, it determines the relationship and key patterns from billion of data sources in real-time.

 

AI can shape strategies for banks by a deep understanding of disruptive trends, market dynamics, and financial industry.

 

Technical Content writing is my passion. I’ve broad experience of writing for thie technical field. I started my writing at the age of sixteen when I was in colloge. Now I’m already writing for contribution sites as an independent influencer. I wrote many article on medium and many of them are published on various publications. I wrote many case studies for business to let them know the real need of digital transformation for their busniess.

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