Benefits of Artificial intelligence in Finance and Banking

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Manan Dharamshi
Bachelors in Journalism, Psychology and English from Christ University. Interested in covering Sports, Technology, Automobiles and Entertainment.

At the beginning of this article, we will come to know about what is Artificial Intelligence? How AI or say Machine Learning able to perform a human function?  At the end of this article, you will come to know about the benefits of Machine Learning in the financial world and Banking i.e. Credit Cards?

But before this let us understand what is Artificial Intelligence.

Artificial Intelligence is a method of creation of a computer, a computer-operated robot, or a software think intelligently, in the like manner the intelligent human’s mind think and operate.

  • AI is proficient by studying how human thinks, how humans learn, decide, and work while solving a problem, and then using outcomes of study as a basis of developing intelligent systems and software.
  • In finance, Artificial Intelligence or say machine learning performs like a magic. Till now, the achievement of machine learning depends upon collecting suitable dataset, building infrastructure and applying a subsequent algorithm.
  • Machine learning is creeping inwards to the financial service Industry. The thing that matters what solution implementation industry is going to welcome and how AI can solve out the basic problems?
  • The magic about ML and AI solutions is that they gain a hint from past experience without overtly programmed, and perform the function according to that.
  • In AI models, Data scientists trained it with existing dataset and then apply a well-trained model to real-world scenarios. Model runs in a background process and display results based on it. Data scientists can retrain models as fast as required to keep them up-to-date and effective.

Usually, the more exact the results you will get as more as data you provide. As usual, lots of datasets are very common in the financial services industry. For instance, Petabytes of data on transactions, money transfers, customers, bills, and so on. As technology evolves and the finest data set is open-sourced, it’s hard to visualize the future of financial services without ML and AI.

Changes that AI will bring in banking and financial world

Just Imagine Credit Card rewards customize on the basis of your travel, spending behaviour- based on your past, text prompts on your phone that some money over to savings, scan your spending patterns to block fraudsters from using your card, AI-inspired tips to help you save money, Remind you to transfer funds from Debit or Credit card and Subscription and Autopay monitoring. All powered by ML and Artificial Intelligence at one-touch access then also, AI is being considered and said that it is in the state of Learning.

Despite the challenges, many financial companies have already taken advantage of technology. Here are some of the crucial benefits when Artificial Intelligence is incorporated in Businesses.

  1. Minimize operational costs thanks to automation.
  2. Trading & stock price prediction (probability based).
  3. Better compliance.
  4. Enhanced user experiences and increased revenues lead to good productivity.
  5. Fraud detection – suspicious account behavior, investments etc.

Thanks to the quantitative nature of the Banking and financial domain and large volumes of historical database, machine learning is poised to enhance many aspects of the financial ecosystem.

That ‘s why many companies are investing a lot in machine learning R&D. It can prove to be costly to neglect Machine Learning in the future.

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