Benefits of AI for Your Financial Software
Developing software for business we follow the idea to enhance its functionality and performance. While common features, like data storage, dashboard, reporting, aren’t impressive anymore, financials currently opt for AI – an approach that gives a sensible competitive advantage.
Artificial intelligence eliminates routine tasks by reducing the time per decision-making and excluding manual errors. Experts already forecast that cognitive technologies, like automation, AI and ML will replace 16% of U.S. jobs by 2025. Reduction in labor costs isn’t a single benefit of AI, why not go ahead through more statistics:
- 80% of business owners say that AI boosts labor productivity and note an increase by 40%.
- 79% of executives claim AI to be making their work easier and more efficient.
- 75% of respondents say that AI allows them to move to new ventures.
- 59% see an improvement in big data usage in their organizations.
IDC Group predicts that the worldwide revenue for AI technologies and products will reach over $156 billion in 2025, making it one of the most desirable solutions for financial business.
There’s a huge demand for AI since it’s able to perform actions and make decisions like humans do. Imagine that your software can process data, analyze, schedule, conclude and learn. And “learn” here means that AI is developing independently without human involvement, based on its own experience and incoming data. Yet if you’ve never implemented the technology before, it might be difficult to imagine how to integrate the AI approach into your work. In this article, we provide an overview of the most-coveted AI abilities valuable for banks, lenders, and financial institutions.
Communication is one of the main things that customers use to decide whether they’re pleased with your services or not. Having to wait for hours till a specialist answers is inadmissible. Statistically, customers are willing to wait up to 15 minutes but only if your offer is engaging. Otherwise, a user will leave the website in 2 minutes or lose your page among other tabs.
AI-based solution for customers is actual salvation. Modern chatbots can respond fast and provide relevant information to customers within seconds. Additionally, you can create a solution able to guide users through services and give advice and tips when possible. With AI customer support, you will show customers that you care about their experience and time.
AI showed the new way of risk calculation allowing to reach thin-file customers. If you work in the domain of lending, you know that the traditional approach is static and based on an outdated credit score. If a score isn’t high enough, it doesn’t mean that they are unreliable applicants.
AI can accurately predict the customer’s creditworthiness and decide whether the person pays back or not. Unlike the traditional approach, AI solutions can process various parameters, including age, location, job position, marital status, and historical data to make more accurate decisions. With AI, you can analyze customer behavior and understand them better to determine if an applicant is reliable. Besides, such systems can learn from their experience and run self-check tests to prove that their results are reliable for financial decisions.
The chance of errors while working with a large amount of data is huge. Tasks like data entry, analysis, and reporting are essential not only in banking. These repetitive tasks require employees to work with data manually which takes hours.
These tasks can be performed by AI with risk-free perspectives. Modern software can convert a large amount of data into structured documentation within minutes and make automatic analyses with diagrams and graphs. It drives statistics and updates it every time you load more data into the system. Using AI for data management, companies can focus on core activities, reduce manual errors, and effectively allocate time to other tasks.
Fraud Detection and Prevention
The main danger for banks and lenders is fraud that is unfortunately quite common in the industry. One mistake in the security system can lead to huge losses and bankruptcy. AI technology can take the security of the financial system under control and detect fraud.
AI algorithms, as was mentioned before, can learn without human intervention. By exploring the normal behavior of systems and users, AI can quickly identify fraud activities and transaction patterns. Such a solution can detect and prevent fraud attacks within seconds securing your money and business.
The development of AI drives changes to the world of finance. It saves time and money by optimizing routine tasks, speeds up financial decisions, avoids “human” mistakes, and increases productivity in general. AI has a strong potential to stabilize the work and bring the business process to a new level. But not to mess up with the technology, remember to get in touch with your loan management software developer to successfully lead the market.