The finance industry is no exception with business owners and managers using AI (Artificial Intelligence) to gain a competitive edge in the market. Below are the main factors as to why AI has become so important in the world of finance.
AI provides a fast and accurate assessment of a potential borrower; it is also capable of factoring a wide range of aspects that lead to a safe data-driven conclusion. AI credit scoring has surpassed traditional credit scoring systems due to its sophisticated rules. Lenders are able to asses’ applicants objectively and make a secure decision on applicants even if they do not have a long credit history.
AI is capable of processing a vast amount of data quickly. This is useful as AI can analyse past data to predict any potential risks that may occur. When facing uncertainties in the market AI can instantly analyse a wealth of data to draw real-time reactions, something that would take humans a considerable amount of time to asses
Fraud is a constant threat to the finance sector, but now thanks to AI cases of fraud are decreasing. AI is able to prevent fraud due to learning users’ habits such as locations, spending, and habits, therefore when a transaction out of the norm appears AI is able to alert the bank. AI is also useful in tackling money laundering as suspicious activity can be recognised via data and thus reduces the need for human analysis.
AI has inspired data-driven decisions and it is becoming increasingly popular in the trade market. The technology has been used for Intelligent Trading Systems that monitor the markets, social media and news reacting far quicker than any human can. It is also used to predict stock performance and recommend portfolio investments both short and long term.
Automated Data Entry
AI can be used for automation that will cut industry costs and boost productivity. AI is able to input and verify data in an automated process when it comes to repetitive tasks, These removes the need for human input and removes human error increasing accuracy and saving time.
As AI becomes increasingly integrated into sectors such as finance, learning and ability are set to improve. AI will improve on accuracy and create an across the board due diligence that will improve the financial sector as a whole.