It’s no secret that technology has drastically changed the way we live our lives. From how we communicate to how we manage our finances, everything has gone digital. Financial services have been leaders in this digital transformation, with early adopters of online banking apps and financial planning tools. And it’s no surprise that this trend will continue in the coming years.
In particular, artificial intelligence (AI) will play a big role in the financial industry. Already, AI is being applied in investment management, financial advice, streamlined customer service, fraud detection, and more. And as AI continues to evolve, we can expect to see even more innovative applications in the field of finance. For example, AI could be used to create personalized investment portfolios or to automate insurance claims.
In this article, we explore the trends in financial services and AI in 2022. We’ll also learn what we can expect to see in terms of robotics’ application to finance, and how far this evolution could go.
Trend #1: Better financial decision-making for consumers
One of the most promising applications for AI in finance is the use of predictive analytics to make personalized financial decisions. This technology could be used by consumers who want to save more, spend less, and build a solid financial future.
The predictions could go something like this: “Based on your spending habits and desired savings level, we recommend that you change your discretionary spending category from ‘Eating Out’ to ‘Restaurant Delivery.’”
Such analyses of consumer behavior will become increasingly common as new methods are developed and digital data becomes more readily available for analysis. And it may not only help with day-to-day expenses but also carry over into longer-term goals such as retirement planning or saving for college tuition.
Trend #2: Eliminating Silos to Provide a Better Customer Experience
Another benefit to financial services institutions that are heavily influenced by AI is the customer experience.
One way AI can help improve this essential part of doing business is through the use of chatbots, which are digital assistants that communicate with customers via text messages or voice commands. They can answer common questions about products and services, as well as be programmed to make personalized recommendations.
AI will likely take off in an area where many consumers express frustration—that daunting phone tree when calling their bank. With chatbots, you won’t have to navigate menus or wait on hold for an available representative—the bot will provide service for you right away.
As you can see, these chatbots will prove to be game-changers when it comes to customer experience. Customers won’t have to call up their bank for account information or personal questions—they will just need to ask the bot on the other end of the line. In fact, consumers have been using messaging apps more than social media apps to communicate with businesses and brands that they patronize. This is a sign that organizations must adapt and find a way for customers to reach them via text message if they want to keep up with technology and attract this new generation of digital natives.
Trend #3: More Real-time Financial Data Available
All of this data being collected by fintech companies offers another benefit: improved financial transaction monitoring and alerts.
This technology will improve upon the current approach to fraud management, which can lag behind in real-time due to siloed data and a lack of visibility into transactions. As AI tools get more powerful, they will be able to catch money laundering or suspicious activity in real-time instead of after the fact, when it’s too late.
Another benefit is that this technology could help banks identify errors before they become costly problems. For example, if an account is debited twice for one transaction by accident, the bank would know right away and could address it before it becomes a bigger issue involving multiple customers.
Trend #4: More Robotic Process Automation
Fintech companies will also continue to implement robotic process automation (RPA) into their operations. This is a system of software bots that can complete repetitive tasks more quickly and with higher accuracy than humans. These virtual workers read from a set of scripts or perform tasks on a certain type of transaction, then transfer the information to human employees for review and approval. The result is an improved workflow.
For example, if you wanted to move $100 between accounts, you would usually have to fill out some forms and provide documentation before your request could be fulfilled. With RPA, however, this mundane activity could be completed much faster by letting the bot do all the work instead.
Trend #5: AI-powered brokerage services
AI is also making its way into the financial advisory space. For example, Wealthfront recently launched an AI-powered tool that will advise you on how to best invest your money. It can suggest appropriate fund managers and give you a snapshot of your risk level by looking at certain indicators such as age or income.
One way AI is being used in the financial advisory space is through Robo-advisers. These tools provide automated, algorithm-based portfolio management advice to investors. It can provide specific advice for you based on your risk tolerance and investment goals.
In terms of quality, these Robo-advisers are able to provide better services at a lower cost than traditional financial planners—and as their popularity grows, they will make a strong impact on the financial advisory field.
Trend #6 Security and Authentication
Lastly, AI will help streamline security protocols when it comes to authentication. Today’s multi-factor authentication process is often slow and cumbersome for customers, but AI can help by providing more accurate information about who you are within milliseconds of scanning your fingerprint or iris.
It will also use data from multiple sources to make this assessment, which can become more secure than rules based on one type of authentication tool over time. This means that companies will be able to get new account holders started with products faster while ensuring that they are legitimate users.
Future of Artificial Intelligence And The Financial Services Industry
Artificial intelligence has the potential to solve many of the issues plaguing consumers and financial services institutions alike. The technology could help find innovative solutions for largely unexplored fields like robotic process automation or account fraud management while making traditionally tedious tasks easier through helpful, simplified digital assistants like chatbots.
In 2022, the financial services industry will have to embrace a digital-first approach in order to survive in a world where consumers want instant access to information and don’t want to wait for responses. This could mean the beginning of a new era for relationships between financial services companies and their customers—one where AI operates as a helpful assistant instead of a novelty technology, making your life easier even while subtly shaping what you spend on.
MajestEYE: Transforming The Financial Services Industry With AI Technology
As an AI service provider, MajetEYE sees the value in not only using AI to solve today’s financial challenges but anticipating what problems could be solved by applying it in new ways.
With this in mind, we take a unique approach towards financial advisory services, applying cutting-edge technology to provide unbiased financial advice that helps customers meet their goals. We believe that our clients should have the best possible information to make important decisions about their money and we’re committed to delivering it.
To learn more about how AI can help your financial advisory needs, contact us today.
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