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Traditionally, one of the domains that is most resistant to change is the Financial sector.
Usually, banks do not innovate on their own because they are
a) too big to adapt and follow external trends or
b) because they don’t know how to really change
Besides, any new improvements in the sector tend to be bogged down by an inordinately long development and testing cycle and clearing several compliance related checks. Innovation in the Financial sector is therefore, something that is typically driven by embracing change from outside - that is “importing” stuff rather than “internally generated” from ground-up.
AI is however creating a strong pressure to innovate for the financial sector, as it is an industry that is characterised by a lot of available date - both structured and unstructured. AI, thus has the potential to create an impact across the board - from improving customer experience and engagement, detecting outliers and anomalies, driving revenues, cost optimisations, and finding predictable patterns in the numbers.
We list below some of the innovative solutions in the Financial sector that are either already in place or are emerging.
1. Market Intelligence
Information extraction or insights generation. Some of the solutions focus on analysing the public domain news and social media sentiment for optimum decision making and being alerted on certain spikes and volatility etc.
2. Personalized financial services;
Virtual assistants and conversational chatbot interfaces are rapidly emerging as the new user interface connecting people to products and services. Companies are leveraging such solutions to engage in intelligent conversations with their customers using AI-powered virtual assistants and smart bots.
Credit scoring applications where algorithm based credit scoring engines emulate the human intelligence of underwriters and decision makers without any data bias and all data is collected for analysis with explicit user consent.
3. Algorithmic trading
Developing personalised AI agents that learn how to invest by themselves, by developing more granular market insights than human experts using massive data sets. Such AI based agents can continuously monitor massive data sets to dynamically adapt to changing market conditions and yet be free from cognitive biases that affect human decision making.
4. Security
Improving human physical identification and authorisation
Some examples include using human eyes to unlock phone or log into your mobile applications while on the go. Similarly the Face itself is emerging as the Uses Identity and is expected to get widely deployed across the industry in many apps and solutions. Such AI and computer vision based solutions ensure No more passwords to remember, manage or speak out loudly.
Fraud Detection:
By sensing abnormal and anomalous financial behaviour using foresight and next-generation AI based technology that leverages data feeds that come from multiple new and unexpected sources.
The overall effect that AI is either already having and on the financial services market is tremendous. AI is making the industry more digitalized and innovative than ever before. Its final goal will probably be to create the banks and financial institutions of the future: with no credit cards, no frauds, no menial reporting activities.
It would definitely be a great world to live in. Can’t wait for it!
We focus on leveraging our expertise in this space and our using our platform as an accelerator to help our customers through the journey of the fast-changing digital world.