- October 21, 2021
How artificial intelligence ensures security in finance for customers?
Among the countless inventions done by humans, artificial intelligence is among the best ones. IT has transformed our world while working on all the aspects of comfort and security. Is there any doubt to expect unprecedented chapters of development in the coming years? Certainly, not. The growth in the Artificial intelligence sector is timeless and is sure to stun us all with new standards.
No need to mention that with development support in every sector and industry, AI also works great for the finance sector. We can see for many reasons that how our financial habits and ways have changed for good. This blog is an effort to throw an enlightening light on the role of artificial intelligence in finance.
What is AI or Artificial Intelligence?
Artificial intelligence is a versatile branch of computer science that makes smart machines and teaches them to perform tasks that need human intelligence.
Types of Artificial intelligence
As AI is a versatile branch of computer science, you should see its distribution in varied incarnations.
- Reactive machines
- Self-aware machines
- Limited memory
- Theory of mind
Examples of Artificial intelligence
Of course, to understand the role of this technology, we should take the help of some examples. They reveal the capacity of AI and also it’s capacity to expand to touch new horizons.
- Robo advisors
- Email spam filters
- Conversational bots
- Alexa, Siri, and other smart assistants
How Artificial Intelligence helps the finance sector operate safely?
You already know that emergence of AI is destined to attain better standards in every industry. In the finance field, security is always the most important concern. Data infringement, data theft, etc., are among the prime concerns for the companies.
Compromise in the safety of information of the customers directly means losing the customer. No company wants to afford that. It is the reason that they all are ready to embrace the technology-backed ways.
The new alterations in the methods have marked the presence of new financial ways. With better ways to work on the concerns of the customers, the finance companies can serve better.
Easy fraud prevention
This should certainly be the first point to discuss. Due to a considerable increase in online and e-commerce transactions, we are prone to financial fraud. Once someone gets access to our mobile phones or devices, he can also get the reach to banking apps.
The hackers track our interests and choices to get access to banking and financial apps. Whether we check the return on our online investment status or buy something online, the money should be safe. Good to know that we have attained this safety level up to a great extent.
AI fraud detection system ensures safer transactions. Financial institutions employ AI for anti-money laundering, and the results are promising. The point is, artificial intelligence has successfully announced its significance in ensuring safety.
The Emergence of flexible FinTech
It is true that FinTech that is a smart mixture of finance + technology could take its right shape only due to artificial intelligence. The question is about the comfort of the customers and the better features and new-age approach. Countless financial products can be compared online.
In past years when it is difficult to get a loan with a simple financial weakness through mainstream lenders, today we have online lenders. They have a new but rational approach. In place of credit score status and employment status, they consider current repaying capacity.
Today, you can even apply for loans for the unemployed if you have the capacity to repay instalments due to an alternative source of earning. Rental income, part-time or freelance job, etc., should work if they earn you consistent money despite job loss.
Safer online verification and process automation
People today do not visit their bank branches. They have now smarter ways to do transactions or obtain their bank statements. Similarly, when you apply for a mutual fund option, the procedure can be completed online. The verification code policy ensures better safety.
The magic is that even the financial solutions that you get at your door can be obtained through a simple online application. Have you ever tried door loans cash in your hand for a small financial need? If not, then try it. Simple online application, and once approved, a loan representative comes to your place to hand over approved cash.
Online verification of documents and residential details is another facility that financial organizations can offer to their customers. Also, they can know about the hidden information if the customer hides it. Today every finance company has access to credit reference agencies.
Finance companies work in regulatory compliance and transparency
Not only the customers but also the financial companies have to act honestly. No finance company can overlook the financial weakness of an applicant in exchange for commission under the table. The procedures are online and need to be authenticated with the required details.
One suitable example can be of the fund seekers who sometimes follow a lengthy procedure due to brokers. There is no scarcity of mainstream and private lenders in the UK, but people pay high commissions to brokers due to any financial reason. Poor credit score, inconsistent income in the past, etc., are among the prime concerns.
Customers today have the power to calculate total costs online through online calculators. Also, no finance company can overlook the industry norms and rules. Most things are digitized now. Gone are the days of heavy files that could keep many dirty secrets.
Personalized banking offers a new experience
Artificial intelligence has improved how the finance industry works on financial concerns, from voice-controlled assistants to self-help solutions. You can decide payment schedule, check balance, spot account activities, etc. All can be done easily and successfully.
Many financial apps guide you to take the right decision about future and personal finances. Track expenses and work on saving big. The banking apps give reminders to pay bills and monthly debt instalments. Life and personal finances were never so easy.
Interact with the banks easily without any constraint of time. In day hours, customer care executives assist, and at night, smart chatbots solve the concern. Get customized loan offers according to your past banking statements as AI tracks every activity in your bank account.
Detection of doubtful activity through the customer account
You must have received messages when trying to log in to your bank or another financial account, even from your laptop. The account has all the details related to mobile numbers etc. When you try to log in from any other device, you get a notification.
It helps you get the notification if someone else is also trying to log in from your account. Hackers try to intrude in accounts to get access to money. Thanks to AI today that has a bigger understanding of things and higher security standards, they create a stronger world of security.
It has become easier now to work immediately on the concerns if something goes wrong on the security part. It is a big thing that we have such a smart tool for current needs and future requirements. The human mind has a companion in the form of AI-backed machines that work exactly like humans. They, in fact, think like humans.
Some quick points at artificial intelligence statistics 2021
- AI industry is expected to increase in the market value of up to $190.61 billion in 2025.
- The forecast on AI growth rate shows the growth of approximately 34% across the planet.
- Around 93% of technologists feel we are not prepared for smart machine technologies.
- Top three challenges of companies that embrace AI are –
- Staff skills
- Uncertainty about starting point
- Fear of the unknown
- By 2030, AI will help in a 26% increase in global GDP, equal to $15.7 trillion.
- The market of wearable AI market is going to increase by around 180 billion dollars by 2025.
- AI chip market earning is expected to touch the figure of $83.25 billion by 2027.
The above facets in the blog throw light on every important aspect of how artificial intelligence takes charge of security. We can say that after the wait of centuries, we are in safe hands now. Isn’t it interesting that humans teach machines to keep humans safe, and then machines do the same?
This interesting harmony and team between the machines and the human world have so much more to do in the coming decades. All the best to us and All the best to machines. We have so much to expect from this advanced technology, and it will not disappoint us.