How AI apps for banks are changing the face of the financial sector
Artificial Intelligence is already changing the face of banking on a global scale. Long before chatbots popped up as interesting business-use cases, long before mobile banking applications offered military-grade secure transactions, and much before focused analytics tools for banking made themselves known, AI apps for banks augmented by machine learning and deep learning began creating an impact in the world of banking.
The question is natural, and when you think of it, this hardly comes as a surprise. The following factors make the financial sector a highly targeted market for all kinds of AI apps for banks:
Artificial intelligence is already playing a role in critical finance and banking functions such as loan approvals, asset management, portfolio design, and risk management. However, the true potential of AI apps for banks extends much beyond these often talked about areas of work. In this guide, we present a sneak peek into the fascinating forces of change that AI apps for banks and platforms are bringing into play in the world financial services.
Heard of robo-advisors? Well, the term is quite misleading in the sense that there are no robots involved. It’s pure AI-based algorithms in play, helping individuals with portfolio creation. Leading banking and wealth management organizations have invested in such AI applications. These applications help banks build an online accessible tool that considers user preferences, personal demographic information, earning power, and wealth sources, and then matches these with their financial goals. In parallel, these systems take real-time market data and factor in parameters like a customer’s credit history, risk aversion, and lifestyle practices, creating a very robust portfolio of investment and saving instruments across asset classes. By regularly measuring the success of suggested portfolios with real market forces, these algorithms keep on becoming smarter by including more factors in play. This not only helps end users quickly get vital inputs on suitable financial products, but also helps banks market and sell the most appropriate products to users.
Extending the idea of personalized investment portfolio suggestions, there’s the more generic concept of personalized financial advice, which is expected to go big very soon. Mobile banking applications like Moven and Simple leverage the idea of using algorithms that grow smarter with time. More precisely, they grow smarter by handling more data and measuring more results.
These AI-based applications can integrate with a user’s online bank accounts, debit and credit cards, and e-wallets to track their expenses, present advice on better expense management practices, and help them choose more suitable financial products that sit well with their financial habits, liquidity requirements, and short-term saving goals. These, and similar AI-based applications, can transform the market of financial advice and product recommendations in a big way.
Hundreds of hedge funds across the world are using AI-based models.
