15 Dec 2020

AI in the Finance Sector : How to Benefit from Conversational AI?

Artificial Intelligence

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Human intelligence has been unparalleled for centuries now. With the newest developments in technology and science, Artificial Intelligence (AI) is rapidly becoming the closest thing to human thinking. From being a common man’s virtual diary to acting as a planner for a country’s defense program, AI handles it all well. The technology is relatively new and hence unknown to many, but that doesn’t render it unusable daily. AI has been establishing its prominence in various sectors, and the development that can we can witness in the near future is just as unimaginable. One such industry is finance

Online banking has seen exponential growth lately, given the COVID-19 pandemic and the need for virtual monetary transactions. As suggested by a finance study, digital banking will experience a revolutionary rise and reach 78% by 2023. This massive figure works well for various financial institutions across the globe. The profits gained will be humongous, and cost savings will be in billions of dollars. Most of the banks are aware of the potential AI upholds, and various departments are scrambling around to get ahead in the field. Various sectors of finance can be benefited from conversational AI. Some of the sectors and perks are mentioned below.

How Artificial Intelligence Transforming Finance Industry

how-artificial-intelligence-transforming-finance-industry
  • Consumer finance
  • These entail various professional finance companies around the world. With the help of AI, security is at its maximum, and customers find it easier to trust the online applications if the interface is simple yet detailed.

    Frauds can be easily prevented using AI, which wasn’t possible in the past due to the manual input of data. AI analyzes the data algorithms, and any fraud patterns are immediately taken note of. This ensures a secure transaction and helps establish a loyal consumer base.

    With a rise in cyber-attacks and unethical hacking cases, AI is the only option for financial organizations to minimize their losses and cater to their consumers’ impeccable quality of service.

  • Personal finance
  • Humans tend to move towards situations that guarantee the least interference from a third party. Organizing finances is something that renders their independence incomplete. People have to turn towards financial establishments for bits of advice on investments, and this process is rather tedious, given the number of agents involved.

    AI minimizes the need to interact with these financial bodies. Economic advice can be generated via chatbots on various sites, without the individual revealing their monetary stand. AI can be relied upon to create long term solutions, and the methods projected are after endless scrutiny of the market and various industries

ai-in-finance
  • Corporate finance
  • Corporates and other big enterprises should have a firm foundation of knowledge regarding the market trends and availability of specific resources. For this, AI can be the perpetrator. It possesses the capability to analyze risks and growth factors faster and produces results with a low error margin.

    Frauds, losses, and anomalies in the system can all be reduced by putting AI to use. Not only does it save money and time for the corporate, but it also reduces the workload for the company’s employees. Reduction in the required human resource is a perk with cons of its own but eventually works in favor of the organization.

    For financial institutions to benefit from the conversational AI tide, they need to keep the following things in mind –

  1. Enable interactions as humane as possible – The consumer interaction with the company keeps it in the news. The conversations via chat bots should be effortless and to the point. Also, the system must run 24/7 to gain maximum space and attention in the market.
  2. Avoid repetitive processes – AI should work to reduce the user’s efforts, not double it. Voice assistants are often found to be redundant in their answering methodology, which renders them mundane.
  3. Save money on certain departments but feel free to splurge it on the R&D one – This department is essential as it designs every application for the company from the very basics. Hence, resources should be handled properly for the same
  4. Conversational AI still has a long way to go, but companies are already benefiting from it. Keeping the above-stated points in mind, an institution can surely maximize their profits in the upcoming financial quarter.

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