In recent years, artificial intelligence has been protruding a multitude of industries, and the financial sector was certainly not left behind. Despite a brief AI adoption slowdown during the height of the pandemic, financial institutions are once again heavily investing in this technology.

Incidentally, the global AI in fintech market has been doing so well that it is projected to reach $46.8 billion by 2030. That’s an impressive CAGR of 19.8% since, in 2020, the market had generated a revenue of $7.7 billion.

With so much growth and potential, it’s more cameroon phone number datan  important than ever for business leaders to understand how artificial intelligence can be applied in the financial services industry. So, that’s precisely what we’re going to talk about today.

Specifically, we’ll cover:

1. AI adoption drivers
2. Top AI use cases in finance
3. Key challenges halting development

Now, let’s dive in.

The Role of AI in Finance

To understand intelligence tools, we first need to address what AI is and how it helps your organization.

Artificial intelligence merges machine learning, natural language processing, deep learning, and predictive analysis. All in all, it uses computer algorithms to mimic human actions.

Basic types of AI have been around for a few years. Amazon’s product recommendations that use machine learning to improve upsells and cross-sells are a great example.

However, because of advances in technology, product recommendations are just the beginning. In recent years, a couple of factors have positively how startups are revolutionizing the technology market  contributed to the adoption of AI in banking and finance. So much so that some companies are already busy implementing these solutions to improve business performance.

AI in Finance Adoption Drivers

The most recent crisis that the majority of companies have faced is probably the COVID-19 pandemic. Interestingly, it ended up leading to an acceleration of AI adoption, with 52% of companies speeding up their implementation plans.

However, besides the need to innovate due to the “new normal”, there are other key adoption drivers that are causing companies from all sectors, finance included, to begin leveraging artificial intelligence. Specifically, the following:

• Big Data. The enormous increase in the amount of data that is being generated within the financial services sector has peaked the interest of organizations. Now, they are eager to leverage big data for a better understanding of customer behavior and the delivery of more personalized services.
• High Competition. Competition is getting stiffer every year. Naturally, this makes banks, insurance companies, brokerage firms, and other financial institutions eager to find new ways of differentiation.
• Regulatory Obligations. Financial institutions tend to be under a high level of scrutiny from regulators. After all, any inquiries must be country list  answered promptly and the requested reports provided without accidental mistakes. Thus, organizations are looking for ways to speed up and systematize internal processes to ease regulatory compliance.

Of course, the above-mentioned factors are non-exhaustive. After all, every business is different and has varying priorities that drive digital transformation. However, no matter what your unique case is, chances are high that you can benefit from the development of AI applications.

Top Uses of Artificial Intelligence in Finance

We’ve already seen how financial organizations are being disrupted by various technologies. Predictive analytics is a game-changer for insurance, blockchain is revolutionizing banking, and these are just a few recent examples.

Today, we’re focusing on yet another innovation that’s transforming finance — artificial intelligence. So, in this section, we will take a closer look at the top AI use cases within the industry.

1. Personalized Banking

In recent years, with the number of options growing, customers have become more selective than ever with their banking choices. Now, if you can’t deliver a smooth and efficient service that goes beyond providing the basic financial necessities — clients might quickly flock to competitors. With artificial intelligence, this can be avoided.

You see, thanks to AI’s ability to comb through large amounts of data in seconds, it can be an invaluable technology for banking and finance applications. Specifically, intelligent systems can keep track and regularly analyze customer income, expenses, spending habits, and disclosed financial goals.

Then, AI-powered software uses the gathered insights to provide personalized financial advice and recommend investments or related services to those that may be interested. Thus, helping you deliver a unique experience to each and every customer.