In the latest years, this market faced big meaningful changes that demanded quick adaptation from financial institutions through the development of new processes, tools, and innovative solutions. Even so, are you aware of the true impact these technologies, such as artificial intelligence, had on the financial market?
In this article, we will explain the importance of AI for the financial market, demonstrate how this technology can be applied, and provide some tips on how to implement this technology for financial institutions.
Why is artificial intelligence important for the financial market?
New payment methods and online channels increase exponentially the number of financial transactions in the digital environment. Therefore, there is a higher risk of data leakage, security flaws and fraud.
Artificial intelligence helps financial institutions to deal with this higher volume of transactions, while avoiding frauds and mistakes. This is thanks to its capacity to analyse huge amounts of data in real-time, understand patterns and detect risky behaviours.
It is also worth highlighting how this technology can be important for the overall customer experience, with more agile and real-time case handling. Additionally, customers are becoming increasingly demanding for personalized services and banks must be prepared to offer these solutions more and more.
Below you will see how some financial institutions are already applying artificial intelligence on their business.
Applications of Artificial Intelligence on the financial market
Access to registered customer data, transactions and behaviour are becoming more frequent and, therefore, financial institutions own large amounts of data. Banks were pioneers on the collection and usage of data to make decisions and, therefore, to face the challenges of such activities.
On top of preserving business security, these institutions must offer more personalized services to attract and maintain customers. Here are some of the challenges they face, solutions and technology applications to help on their resolution.
There are many factors to be analysed when granting credit, yet this does not diminish the risks that constitute such operations. One of the main challenges is to collect and organize data, since the high volume presents a challenge for human analysis.
Artificial intelligence is capable of quickly verifying thousands of different information and criteria to determine if credit should or should not be granted, or even if a given request demands a more thorough manual analysis.
Customer support is one of the most important aspects to retain customers. This support is important to help them deal with common issues and to support their adaptation to technological advancements – such as app transactions. Artificial intelligence can provide quick real-time support to multiple people effectively and at once.
Personalized products or solutions
Different profiles of customers will require different personalized services to ensure customer satisfaction and business profitability. Artificial intelligence provides understanding about the characteristics of each customer and helps design more adequate adapted solutions.
Smart legal department
The impact of legal processes in financial businesses must be taken seriously. Managing the entire procedural volume in banks is complex, but artificial intelligence can provide important insights, such as the average case handling time, winning or losing rate, and average cost.
With that, law professionals can create legal strategies, provide better defences, and even avoid litigation.
There are already artificial intelligence solutions capable of analysing market information to understand the best way to negotiate on stock exchange. These solutions can identify the best time to buy or sell stock by massively analysing market trends.
Technological advancements and massive volume of information help businesses but also represent challenges for financial institutions that must increase their profitability and retain existing customers. Talk to one of our consultants and check how to increase service quality and security with artificial intelligence!