Implementation of artificial intelligence in the sphere of finance

In recent years, artificial intelligence technology has become one of the main drivers of growth in the financial sector. This is due to the fact that AI algorithms allow companies and investors to better predict market trends, fight fraud more successfully, manage risk more effectively, and solve many other important tasks.

Accordingly, this also affects the market value of artificial intelligence in finance – if for 2020 the volume of this market was estimated at $7.91 billion, then by 2030 it will reach $26.67 billion, with an average annual growth rate of 23.17%. Such data are provided by researchers from Mordor Intelligence. In this article, we will move to the practical side of the issue and look at the most common use cases for AI in finance.

Artificial intelligence is a field of software development that deals with the creation of software that can solve cognitive problems in a similar way to the human brain. In other words, unlike classical systems, AI-based applications can not only execute the algorithms embedded in them, but can also self-learn, identify hidden relationships, find solutions to given problems, and make decisions on their own.

The main advantages of the technology include:

• Improving the quality of work by eliminating the risk of human error.

• Continuous availability.
• Increased processing speed of big data.
• Instant decision making – which is very useful, for example, in the field of trading.
• The ability to predict events based on the analysis of previous data.
• Ability to work on bugs. Like humans, AI is constantly improving, which is why the accuracy of its results is constantly growing.
• Reduce costs through automation.

Representatives of the financial sector have found many ways to use artificial intelligence in their business. Let’s take a closer look at the most common options.

Anti-fraud and fraud monitoring

According to an IBM study, by 2025 the volume of losses from fraudulent transactions will increase to $44 billion worldwide. In the financial sector, this is a major concern, which is why more companies are starting to use the power of artificial intelligence to increase their protection.

AI is able to quickly process large amounts of information and compare transactions with historical data in real time. This allows it to detect suspicious activity and block potentially fraudulent transactions before the funds leave the sender’s account.

In addition, artificial intelligence-based systems help banks and credit organizations to scoring clients, which allows minimizing the process of loan default. For example, one of the largest Ukrainian banks Monobank actively uses AI in this direction.

Forecasting in trading

The behavior of the financial market can sometimes mislead even experienced traders. Therefore, in order to minimize the risk of losing investments, artificial intelligence-based solutions are widely used in this area. AI analyzes the previous behavior of the market, the news background, finds the necessary patterns and compares them with the current situation. This work takes a matter of seconds, after which the trader receives reasoned investment recommendations. It is also important that AI is self-learning, due to which the accuracy of its forecasts is constantly increasing.

Routine Automation

Artificial intelligence can take on most of the routine tasks — counting the assets of clients’ investment portfolios, monitoring the market, processing requests from credit institutions, conducting marketing mailings, and much more. As a result, the company releases valuable employees and directs these resources to more important tasks aimed at business development.

Also, services based on artificial intelligence can provide high-quality and fast communication with customers. For example, such solutions include various chat bots and voice assistants.

Enforcement of the rules

In banks and credit institutions, compliance with the rules when presenting financial services is extremely important.

For example, if an employee has not fully explained to the client the rules for using the loan, the result may be an overdue debt with collateral damage to the reputation of the financial institution. Artificial intelligence can monitor the work of each employee, identify errors and respond quickly in accordance with the situation.

Service personalization

In the financial sector, an individual approach is not only an improvement in the quality of service, but also an opportunity to significantly increase the conversion rate when selling services.

Artificial intelligence is able to analyze the behavioral patterns of customers, identify their needs and preferences, and then generate personalized offers based on the information collected. As a result, customers will be able to receive the most relevant and interesting offers for themselves.

Already, artificial intelligence is widely used in the financial market, and its share is increasing almost daily. Therefore, if you want to bring your company to the forefront of fintech, it’s time to start thinking about incorporating AI into your processes.

Our company offers unique solutions for every business and uses innovative tools for their technical implementation. In the work on the project, we involve individually selected teams of qualified specialists. This allows us to resolve any issues as quickly and efficiently as possible and bring a prepared and effective product to the market.