Technology is constantly evolving in what areas it can be used in and what it can accomplish. One aspect of this involves the combination of artificial intelligence and machine learning as they are applied to make things more efficient. When looking at the future of financial services, banks are utilizing machine learning and AI to streamline the finance sector.
The Potential and Complexity of Artificial Intelligence
When foreshadowing the future of financial services, AI is a commonly referenced term by payment firms and financial institutions (FIs). Writers Sarah Kocianski and Dan Van Dyke from Business Insider decided to look at how banks are utilizing aspects of technology to enhance the future of the financial sector.
Although almost every area of financial services can utilize artificial intelligence, the combo of its complexity and potential has made it a buzzword, while leading to its inclusion in a variety of descriptions of systems, software and solutions. According to a report from Business Insider Intelligence, Business Insider’s premium research service, it dismisses the hype and offers both an overview of AI’s different forms as well as potential applications within payments and banking.
Additionally, emphasis was made on applications that would offer examples of where payments firms and FIs are currently leveraging artificial intelligence, which applications are the most mature and gives recommendations of how technology should be approached by FIs. The report utilizes interviews of executives conducted by Business Insider Intelligence with top financial services providers Mastercard, Bank of America and Capital One as well as top vendors in AI like Kasisto, Feedzai and Expert System.
Key Takeaways from the Report
While the report contained a lot of important information, there were several key takeaways to point out. One trending topic in payments circles and in banking is AI as well as other technologies that can simulate human intelligence. Besides coming in a variety of forms, it is something that is lauded by a lot of strategy teams, CEOs and CTOs as a saving grace in a financial ecosystem that is rapidly changing.
Another key takeaway is that artificial intelligence is being used by banks in the front end to engage customers across channels, securing identities of customers, deepen digital interactions and mimic employees of a bank. Meanwhile, AI is also utilized by banks on the bank end to preempt problems, to assist employees and automate processes.
Finally, artificial intelligence is being used with regards to payments to increase conversational payments volume, in fraud detection and prevention as well as in anti-money laundering (AML).
Breaking Down the Report
Although I have mentioned key things that was covered in the report, there are five statements that covers the report in its entirety. First, it is an overview of different types of artificial intelligence as well as their applications in banking and payments. Second, the report highlights which applications are the most mature.
Third, examples are given where payments firms and FIs are currently utilizing the technology. Fourth, FIs may want to decide on which vendors of various AI-based solutions to utilize based on the descriptions given within the report. Finally, recommendations are given within the report of how payment firms and FIs should contemplate on how to utilize this technology.