AI: An Essential Partner for Financial Organizations
Tech innovations and changing consumer behaviors have triggered a major evolution in the banking and finance industry.
Customers expect real-time, digital-first transactions and engagement, and AI is helping firms meet the pressure to deliver:
More accurate credit decisions
AI provides faster, more accurate assessments at less cost. Plus, it takes complex data into account, allowing lenders to distinguish between those with a high default risk and those who are credit-worthy but have no history.
Improved risk analysis
Risk management is the most common AI application in finance. Its high processing power enables real-time analysis and detailed forecasts that traditional data science methods can’t achieve.
Effective fraud detection
Whether committed by customers, employees or cybercriminals, fraud can put your bottom line, operations and reputation at risk. AI can enable faster, more accurate detection of fraudulent activity.
Data-driven trading decisions
In algorithmic trading (sometimes called quantitative or high-frequency trading), an AI solution monitors structured and unstructured data to make more accurate stock performance predictions.
As you strive to stay relevant and competitive, AI can help you deliver more personalized experiences for your customers.
Big data in banking
Financial institutions that leverage big data analysis open up new development possibilities, better understand customer needs and make more accurate decisions, including in:
Analysis of customer incomes and expenditures: Big data analytics let you make sense of your customers’ habits so you can make more informed decisions about the risks and benefits of credit extensions.
Segmentation of the customer base: By dividing customers into segments according to certain indicators, you’re better equipped to offer them the services that meet their needs.
Risk assessment and fraud prevention: Knowing typical behavioral patterns makes it easier to identify when something goes wrong.
Are you ready for what’s next?
By leveraging big data and AI, you’ll gain a richer understanding of customer needs and the ability to make more accurate, effective business decisions — which means you’ll be equipped to respond swiftly to changing market demands.
And, while adopting these innovative technologies may seem daunting, a trusted IT partner can accelerate your journey to modern banking. Talk to an Insight specialist to learn how AI can drive new outcomes for your business.