There’s no denying the transformational changes being made within the financial world due to the adoption of artificial intelligence and machine learning.
These tech innovations are enhancing multiple processes within the business sector; everything from customer service to securities trading. In the end, however, what is the bottom line effect on the clients and shareholders themselves?
Here’s a high-level overview of the continued impacts AI and machine learning are making in the financial industry. Leverage these insights to be better informed if you are looking to add these emerging tech skills to your arsenal. Opportunities remain plentiful for talented and experienced AI professionals.
Making Faster Decisions When Customers Apply For Credit
In the halcyon days of the 20th Century, credit scoring was largely a manual task. Analysts reviewed an applicant’s credit history and current employment situation before making a sometimes biased decision. This arduous process led to operational inefficiency.
AI is a gamechanger for this financial industry process. Scoring routines work faster; improving efficiency which saves money, with automobile loan companies notably reducing costs by 23 percent. Additionally, the actual credit decisions tend to be more accurate and free from human biases, leading to happy customers.
Detecting Fraud More Effectively
Financial organizations increasingly leverage machine learning algorithms to improve their fraud detection processes. Systems using these routines quickly analyze hordes of customer data looking for patterns; helping to detect activities that seem out of place.
This helps financial companies keep a better handle on their customers’ accounts. Hackers might not be happy with this effort, but customers appreciate the improved cybersecurity, while the financial businesses enjoy the extra cost savings.
AI Continues to Transform Securities Trading
Artificial intelligence applied to securities trading is one obvious use-case financial companies continue to embrace. In fact, nearly one trillion dollars in algorithmic trading happened in 2018, and that number has been on the rise for the last five years. Stock markets across the globe are now leveraging these AI-driven trading routines.
These newfangled trading systems parse through masses of structured and unstructured data much more quickly than human analysts. This improved velocity leads to faster decisions and ultimately faster trades. The routines are also able to better predict stock market trends, with stronger customer portfolios as the end result.
Looking for an IT Job?
If you feel artificial intelligence just might be a great opportunity for your career, reach out to the recruiting team at The CERES Group. As one of the top IT staffing agencies in New England, we know the companies looking for tech professionals with the right mix of skills and experience. Connect with us soon!