The Future is Now: AI and Machine Learning in Online Financial Services

The rate at which AI is changing the world and advancing is truly scary. Let’s just take back two years ago, AI was just a dream and no software or tool that uses machine learning and artificial intelligence really did a good job.

But nowadays, AI is everywhere. It is in our phones, on the internet, on our TV, in our cars, and in the banks.

This major shift thanks to the newly introduced technology helps us analyze large piles of data, see possible patterns, and make things that the average human being cannot. That’s why many banks are pushing the idea of artificial intelligence.

It will not only help them understand their customers and analyze them better, but it will also improve the management of assets, manage risk, deal with cybersecurity threats, and create a more personalized feel for everyone.

With the integration of AI in our culture, we’ve started seeing many online financial services adopting this technology in their services, whether is through using a bot to answer people’s questions 24/7 or for a financial record data analysis.

This inspired us to take a look at some of the biggest online financial services and find out how AI and machine learning are integrated into their offers.

Automating Operations and Enhancing Efficiency

Why is automation so important? Financial organizations are overburdened with repetitive duties and data. By automating these procedures, AI and ML lower human error and boost productivity. 

For example, data input and transaction processing, which are often error-prone operations, can be handled by robotic process automation (RPA) software. This reduces operating expenses while simultaneously accelerating workflows. 

There are many online financial services that AI can improve. From multi-currency accounts to investing, and even saving. AI is here to run the data and give you the knowledge that can be used to make informed decisions.

Interesting fact: 75% of financial services companies think their AI skills are competitive or industry-leading, according to NVIDIA. That gives an industry that depends so heavily on accuracy and quickness a huge boost in confidence. 

Fraud Detection and Compliance

If we have to highlight one of the biggest threats in the financial industry, I think we can all agree that fraud is one of the biggest issues the world is now facing.

But just when we think that there is no way to make sure our financial assets are safe online, artificial intelligence and machine learning come into play. These technologies can help the financial sector develop a more intelligent system of analyzing potential threats. 

These algorithms are best in analyzing vast amounts of transaction data in real time, which means that they can detect anomalies and potential fraud before it happens. 

Banks that will infuse their services with artificial intelligence and machine learning will be able to monitor client behavior and flag any suspicious activity before it happens. This system won’t be perfect right from the start, and it needs to learn quite a lot until it will be able to predict any threats. 

So, don’t get frustrated when you get a notification from your bank to confirm your identity in a transaction that the AI marked as suspicious. This is the system learning and protecting you.

Personalized Customer Experiences

The time when everyone got the same user experience from a financial tool or an app is gone. Companies are now focused on personalization.

For example, the user interface shouldn’t be the same on a banking app for a person who works 9-5 and has one checking and one savings account, compared to an individual who is making international transactions in multiple currencies every day.

AI is a tool that can make the UI responsive and adaptive to suit the customer’s needs. Personalization is really important just because it boosts customer satisfaction and loyalty.

In other words, if a bank offers free machine learning-based budgeting tools for their customers so they can easily oversee their financial records and efficiently manage their finances will be a more popular choice than a one that doesn’t have this option.

High-Tech Trading and Investment

AI can also help us in making better financial decisions. How? Well, can you imagine a software that analyzed the data from the stock or currency market in the last 100 years? This software will be able to predict market trends, see potential financial benefits from investments, and execute trades faster than any human trader with years of experience.

This is a bit of a grey zone, since no financial institution will provide you with investment advice, since even the algorithm cannot predict the future with 100% accuracy. However, we can use this system to help people manage their finances better, analyze their costs, and provide with helpful information about how they invest their money.

According to World Economic Forum, around half of Americans understand the basics of finance. We assume that the other half are making really bad financial decisions just because they don’t really understand how money works. 

Therefore, AI bot trained with tons of data can help regular people make better financial decisions or educate them on how to handle their assets.

Final Words

AI is here to stay, at least until it gets too powerful to control. During this time, we will see more online financial platforms leveraging the power of artificial intelligence just to improve their services.

It is the only way to keep up with the competition, and companies that will avoid the AI trend will definitely be left behind.