How Artificial Intelligence is Redefining the Financial Services

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Artificial Intelligence (AI) has become one of the most hyped technologies today. However, it’s still within reason because it has many practical uses for various industries including the banking and insurance sector.

One major way AI has disrupted the financial services landscape is through the chatbots. There is no dearth of tech firms that are offering powerful AI-based bots for SMEs and many top banks have designed their own. For instance, during the second-half of 2017, public sector State Bank of India (SBI) launched an AI-powered chat assistant called SBI Intelligent Assistant (SIA). It helps the customers just like any regular bank representative by answering basic queries regarding the various financial products of the bank.  Its potential can be realized by the fact that it can handle as many as 10,000 enquires per second!

The following are some of the ways AI is changing the financial services for the better:

High Profitability, Improved Operations

Top global players, especially JPMorgan Chase & Co. are capitalizing on a variety of new-age technologies viz. Intelligent Process Automation (IPA) and Robotic Process Automation (RPA). For instance, the financial corporate was able to augment all the 16,000 financial advisors with the help of machine learning algorithm. Similarly, RPA is allowing to boost productivity and push the profits.

Customer Centricity

Competitive banks and financial institutions realize the significance of customer centricity today. So, they are using AI to offer better services to their customers.

Using AI with other complementary technologies like analytics and big data, banks are able to monitor and analyse the spending pattern of their customers, their creditworthiness, etc. They now also have a closer understanding of the needs of every individual customer.

Claim Handling in Insurance

Insurers are using AI so solve complex challenges in the areas of fraud detection and claim handling. They can identify customers with a risky behaviour so that they can be charged high premiums, and also customers with good history so that they can be charged lower. This way, the average price can be balanced.

A key player in this space is Lemonade Insurance which settles claims using AI and chatbots. The customers can simply raise a claim via their app and upload relevant documents and receipts if need be. The program verifies the data and releases the funds depending on the case.