It was recently reported that Alipay, the world’s biggest payment company, had hit $100 billion in transactions in less than a year with zero branches. Traditional banks would have taken multiple years to achieve this milestone. The financial services landscape is changing rapidly and technology is playing a pivotal role in catalyzing this transformation. Innovations in Artificial Intelligence (AI), the Internet of Things (IoT) and Blockchain technologies are disrupting the world of banking and finance more than ever.
The underpinning need for Artificial Intelligence, especially in the financial services sector, is being acutely felt today. AI has evolved way beyond chatbots answering simple customer queries. Advanced analytics and AI can now be applied to every aspect of banking-from real time customer engagement, to more efficient operational processing to better risk and fraud management. This is because AI spans across not just one, but a spectrum of technologies such as big data, language processing, deep learning, machine learning, robotics, and facial, speech and gesture recognition. Listed below are different ways in which AI can be used to unlock potential in the financial services sector.
Provide greater customer insights
Customer insights are invaluable to the banking sector. PayPal is using deep learning to discover payment fraud, while JP Morgan Chase is using machine learning for fund flow analytics. Credit Suisse, Deutsche Bank and Goldman Sachs have deployed machine learning in their high frequency trading platforms. Several banks are also leveraging AI technologies to track corporate accounts, and for automated sanctions compliance management.