In 2019, we are moving towards a more automated era in both business and domestic life.
With technologies like artificial intelligence (AI) already becoming part of our daily routines, it is continually shaping and accelerating the way we handle data and information. This advancement is also leading to an increase in the adoption of artificial intelligence in banking and other financial sectors.
AI industry analysts estimate that this technology in the banking and finance sector will grow more than $1 trillion by 2030.
So, how AI is used in the banking & finance sector?
What does this innovation mean for the future of banking mobile development apps?
Let’s move forward and see how banks and financial enterprises can make the most with AI in 2019.
This year the global banking & finance mobile app solutions are out to win at all costs! Strategically banks are now focused on responding to customer expectations with more high-tech services. Emphasis will be laid on digitizing the core banking & finance industry services and reassessing the organizational structures. This transformation will only help a bank to become a ‘digital bank’.
As part of the AI trends, banks will have some new mobile applications, virtual assistants, and voice-enabled gadgets to enhance their work and personalization of services.
1. AI-Driven Chatbots & Virtual Assistants
Chatbots in 2019 will be capable of initiating and performing conversation on their own. Thanks to these developments, as banks will be able to manage all of their business interactions through AI-enabled chatbots.
Juniper estimates that “chatbots and virtual assistants with AI capabilities will save banks & finance companies $8 billion per year by 2022.”
Kasisto is the creator of KAI that is a conversational AI platform used to improve your overall customer interaction. It is a powerful technology that provide human-like conversations and helps make other financial decisions.
Let’s take two more examples of the U.S. top commercial banks.
Starting with the largest group JPMorgan Chase – They are using one of the best AI based platforms named Contract Intelligence (COiN) that analyze & extract data points and define clauses in the legal documents. COiN can review on around 12,000 of commercial credit agreements in seconds that usually requires 360,000 hours.
Bank of America using a virtual assistant named Erica with features like predictive analytics and cognitive messaging that provide assistance to over 45 million customers over the globe.
2. Better Customer Insights
Only 20% of SMEs in the UK and US thought that the banks they had dealt with over the past year fully understand their needs for the business. In 2019, the fully automated data collection system will ensure bank managers have the in-depth info of their customers. And in turn, banks will be able to support your business and provide you better customer service.
For instance, ZestFinance provides AI-enabled underwriting solutions that help financial companies assess borrowers data in a completely reliable way. You’ll also get transparency and compliance to satisfy your bank lending regulations.
3. New & Improved Data Privacy Standards
New & improved AI custom banking & finance software development services will give your business security from the risk of falling behind in this highly competitive market. In 2019, AI will refine its decision-making ability for financial services and regulatory compliance is another. Artificial intelligence in the banking & financial sector helps in detecting user patterns and detect abnormal network behavior.
Like, DataRobot is an AI and ML-based software for banking & finance companies that help build predictive models for smart decision making in the issues like fraudulent credit card transactions, lending transactions, digital wealth management, and more.
4. AI Supported Algorithmic Trading
Online trading today is carried out by the fully automated artificial intelligence systems. In the same way, plenty of hedge funds across the world are using AI enabled systems to take the review of variation in financial markets that help your business to make a correct investment decision. In a survey by BarclayHedge reveals that 43% of the investors relied on artificial intelligence and machine learning for investment decision-making.
Like you can use Kavout that’s the AI, ML, and quantitative-based platform that help analyze the huge amount of data and patterns in the financial markets. The Kavout build KAI score to give you a complete analysis of data such as price patterns, trading signal forecasts, portfolio construction, and SEC filings.
5. In 2019, AI’s Biggest Strength Will be Cloud
As banks are turning towards a mix of services including payments, loans, credit cards, and insurance, cloud banking is becoming commonplace. In 2019, many banks and financial institutions are opting for (Saas) Software-as-a-Service applications for their processes such as accounting, HR, CRM, security analytics, and KYC verification. However, some more banking & finance industry services will also move to cloud technology such as credit scoring, billing, remittances, and more.
Ayasdi is a leading platform that helps in creating cloud-based AI applications for banks and enterprises. The technology can be also used to manage and anticipate risk related to money laundering processes.
6. Banks Will Get Faster in Approving Loans
In today’s competitive world, banks now have to make quick decisions on your loan applications. If you are an SME or retail customer, then you’ll be happy to know that banks are planning to improve their own loan origination systems through various upgrades. To give you the best possible digital lending experience, banks will develop secure apps that protect customer data with multifactor authentication and behavioral biometrics.
Underwrite.ai create advanced AI models for lenders that help them analyze thousands of data points from the credit bureau sources. The platform applies AI and ML to determine good and bad loan applications.
7. NLP Based Response System
Today banks are trying to give you more true advice on banking & finance industry services with AI enabled capabilities. Ideally, they want to let you know if you’re unnecessarily paying high mortgage payment than other customers.
For example, top financial institutions like Morgan Stanley and S&P Global using Kensho for managing their customer queries related to financial products and banking & finance industry services. Kensho offers Cloud-based & NLP software to support your banking system in solving complex financial queries of your customers in plain English.
So, this was a round-up of AI enabled applications for banks and financial institutions. The technology grows every day and this list is set to expand in the coming years. For now, in 2019, banks & finance companies that adopt AI in banking, accounting, sales, trade, loan, and marketing will see an improvement in the quality of operations.
Now, if you’re looking for the options to develop an advanced AI/ML application for your banking & finance industry services, then contact ValueCoders and we will be happy to help you.
At ValueCoders (a leading software development company), we have a team of efficient AI and ML developers for banking mobile development apps. Our expert developers have delivered more than 500 apps across 20+ countries and continue to cater to the needs of upcoming clients in the banking industry.