Artificial intelligence (AI) is changing how businesses and people handle their finances. In fact, out of all industries, the emerging benefits of AI in finance have not gone unnoticed in banks, with 80% of them seeing the good it can do.
Business Insider Intelligence estimates the potential savings for banks for AI applications at $447 billion. To top it off, AI in finance not only improves efficiency in everyday financial tasks, but it has so much to bring to the table, where customer experience is concerned.
Here are some of the top areas where AI in Financial Services can do the most good.
AI Reduces Repetitive Work in Finance
Getting rid of redundant tasks in finance alone can save banks billions. An EY study notes that 65% of finance leaders would like to prioritize automating and standardizing processes to improve organizational agility. This is especially relevant for finance teams looking to get rid of repetitive tasks to focus their time on high-level tasks that add more value to their organizations.
Automation using AI can help reduce the burden of transactional processing, audits, and compliance requirements in finance.
AI Amplifies Security & Fraud Detection
One of the best applications of AI in financial services is in preventing cyberattacks and identifying fraudulent transactions. This can mean a great deal to customers who are always looking for banks and financial service institutions that they can trust to keep their accounts safe and well-protected. With companies losing billions to fraud every year, AI’s ability to spot irregular patterns in everyday transactions and learn from historical data can be a big help to finance companies.
Banks like JPMorgan Chase have seen what AI can do and have adopted AI algorithms to detect fraud patterns in every credit card transaction. These patterns are then sent to their data centers, which help assess and determine if the transaction itself reeks of fraud.
Since using AI to boost its fraud detection capabilities, the bank has consistently scored the highest in the areas of security and reliability in the 2020 US Banking Digital Trust Survey.
AI Manages Risk Through Predictive Analytics
Other than fraud detection, artificial intelligence in financial services also excels in assessing risk for loan applications. AI can help accountants and finance teams reduce financial risk through better predictive analytics, understanding customer data and behaviors to determine who has the highest likelihood of being unable to complete loan agreements. Many banks today are already using AI technology to improve their anti-money laundering efforts.
The latest FP&A software today, like Performance Canvas Financials (PCF), are fine examples of putting these AI capabilities to good use in financial services. Finance teams that are still exploring how to get their feet wet in the application of AI should start to look to FP&A and business intelligence tools that are now available in the market today.
How Performance Canvas Financials Can Transform Financial Services
Performance Canvas Financials (PCF) features advanced AI capabilities that enable financial teams with all the right capabilities to rise up to any challenges in financial planning, forecasting, and reporting in 2021 and beyond.
It supports task automation to streamline the financial process, helps CFOs and finance teams gather better insights from historical data, fast-track financial auditing and reporting. It minimizes the risk for errors in critical reports as well.
It is a fully integrated tool that combines financial reporting and consolidation, planning, budgeting, and performance
management in teams. Teams can easily combine it with their existing ERP system for faster adoption.
Get in touch with us today to get a free demo or inquire about pricing.