By HostBooks Inc.

06/18/2020 Artificial intelligence or AI is the technology that is taking the financial world by storm. AI is the computer science field that helps us with machines/computers while replicating intelligence tasks that are normally performed by humans, such as image processing, data analyzing, playing games, decision making, etc. It goes without saying that machines also have the potential to make better decisions just like we humans have. The recent explosion of available data, coupled with advances in technology, has elevated the financial credibility of AI, which, unsurprisingly, the financial services industry is keen to profit from.

AI is on its way to becoming mainstream in the short term in Financial Services. FinTech companies are leveraging AI to create new products and services more widely, while Incumbents use it mainly to improve existing ones. By selling AI-enabled offers as a service, a larger share of FinTech pursues a more product-oriented approach to implementing AI.

AI can be of considerable help. Companies relying on AI can be expected to make significant firm related decisions in the near future. AI also has the ability to determine how clients will react to different situations and problems. Artificial Intelligence will help people and companies make smarter decisions at a very fast pace. But the key here is that there should be a correct balance between humans and machines in order to make decisions and implement new technologies.


How AI has transformed the finance industry

1. Risk Assessment:

AI and ML are very quickly taking the place of a human analyst as inaccuracies involving human selection can cost millions. AI is built on machine learning that learns over time, less chance of error, and analyzing vast volumes of data; AI has established automation in areas that require smart analytical and clear-thinking.

Indeed, ChatBots proved to be a powerful tool for customer satisfaction and an unparalleled resource for businesses that helps them save a lot of time and money. The example of non-commercial activities may include fixing times for meetings. The Bots can fix the meetings, keeping in mind that everyone involved in the meeting is available.

2. Reducing Fraud:

Every enterprise aims to reduce the conditions of risk that surround it. For a financial institution, this is true even. The loan a bank gives you is basically money from someone else, which is why you also get paid interest on investment deposits and dividends. Therefore banks and financial institutions take fraud very, very seriously.

AI is touching the ground of the success when it comes to security and fraud identification. It can use past expenditure behaviors on various transaction instruments to point out odd behaviors, such as using a card from another country just a few hours after it was used elsewhere or attempting to withdraw a sum of money that is unusual for the account in question.

3. Financial Advisory Services:

We can expect more Robo-advisors. As there is pressure on financial institutions to lower their commission rates on individual investments, machines can do what humans don't-work for a single down payment. Another evolving field is bionic advisory, which combines machine calculations and human insight to provide much more efficient options than what an individual can offer.

Looking at a machine as an accessory, or at the other end as an insufferable know-it-all, isn't enough. The future of financial decision-making needs an excellent balance and the ability to look at AI as a component in decision-making is as important as the human point of view.

4. Trade:

Investment companies have relied on computers and data scientists to determine future market patterns. Trading and investments, as a domain, depending on the ability to predict exactly the future. Machines are great at this because in a short time they can crunch huge amounts of data.
AI may propose portfolio solutions that meet the demands of each person. Thus a person with a high-risk appetite can rely on AI to decide when to buy, hold, and sell the stock. One with a lower risk appetite may receive alerts as to when the market is expected to fall, and can, therefore, make a decision as to whether to stay or move out on the market.

5. Finance Management:

AI may propose portfolio solutions that meet the demands of each person. Thus a person with a high-risk appetite can rely on AI to decide when to buy, hold, and sell the stock. One with a lower risk appetite may receive alerts as to when the market is expected to fall, and can, therefore, make a decision as to whether to stay or move out on the market. One of the recent developments on the AI-based wallet is PFM (personal financial management). Wallet Started by a San Francisco based startup, uses AI to build algorithms to help the consumers make smart decisions about their money when they are spending it.

AI is the future of the finance industry, without a sprinkle of doubt. Because of the speed at which it takes progressive steps toward making the financial processes easier for the customers, it will soon provide faster and more effective solutions. Bots are evolving gradually as innovations are happening in the AI sector. In a short span of time, AI would bring good results for not only finance but every field while humans would do the job of monitoring the same.

HostBooks Inc.

To manage business accounting data as well as financial data in a more cutting edge manner, HostBooks comes with the following highlighted features.To maintain financial transaction records, there would not be any requirement of manual intervention as HostBooks automates the process. To a large e…

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