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Automation has made a significant impact in every field, from news and sports to customer service and trading. It is revolutionizing the way we interact with others and conduct business.
Automation enables companies to gather, analyze, and share business-critical information with all stakeholders instantly without any human intervention. It ensures that all processes are done as per the set parameters and within the specified time.
Artificial Intelligence (AI) has been making drastic steps in allowing businesses to manage their resources, employees, and clients correctly. AI has taken control of trivial jobs and has made many tedious tasks simple.
Technology has made it possible for start-ups to conduct business at super fast speed and without heavily investing in infrastructure. Developments in AI, machine learning, and data analytics allow companies to collect data instantly, find patterns, and build actionable reports.
As hi-tech devices gain more processing power and become cheaper, the digital infrastructure is becoming more robust. It is significantly increasing the potential of the workforce and minimizing human errors.
This article will shed light on how AI is making remarkable strides in the finance sector.
The AI revolution in the finance sector is no longer a myth. It is helping companies register massive profits and also allowing them to deliver customer service par excellence.
The following are the few benefits of AI in the finance sector:
- It provides rich reports full of statistics, facts, and figures.
- It allows companies to gain a 360-degree perspective of their customers.
- It enables businesses to transform quickly according to the changing financial landscape.
- It permits various organizational departments to work as a cohesive unit.
- It executes trivial jobs instantly without any human intervention.
One of the crucial aspects of any finance company is to handle customer complaints quickly. Sage CRM is a leading product that comes with a built-in chatbot.
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The chatbot gathers trivial information — customer name, problem statement — instantly, allowing its human counterparts to focus on other important matters. If the solution to the customer’s query already exists, it sends a step-by-step procedural answer or provides a link to the same. Only if the question is new and the solution isn’t available in the repository, it forwards the query to the support team.
The AI revolution is impacting the finance sector as never before. It is opening new dimensions and enabling companies to make forecasts that weren’t possible until a few years back.
The following are the use cases of how the AI revolution is impacting the finance sector:
1. It maximizes the use of resources
Earlier, companies didn’t have a fool-proof system of measuring resource utilization. The manufacturing process was controlled through hand-written checklists or basic software programs. This system introduced numerous human-errors that caused massive damage to the products and the reputation of the company.
But the new AI-driven processes minimize human intervention and eliminate errors. It also takes control of other operating functions. For example, Sage ERP for financial services analyzes which customers need instant attention and routes them to the support team. This procedure allows the company to prioritize its resources and efforts over irate customers and patch-up any wrinkles in the relationship fabric.
2. AI algorithms unlock hidden values
In the digital era, businesses are finding new ways of gaining access to customer data. It is rightly said that data is the new oil because it enables companies to know the ins and outs of their customers. Data allows brainstorming strategies, forecasting future trends, and providing world-class after-sales service to your clients.
Thus, data allows you to build a strong and long-lasting relationship with your existing clientele and helps expand your customer base.
With advancements in technology, AI algorithms take over repetitive tasks that take away a significant share of an employee’s time. These tasks include gathering customer data, filing forms, sending messages and notifications, matching data records, and resolving exceptions.
AI algorithms can handle the following accurately and in a better way than their human counterparts:
- They create a list of parameters and spot deviations.
- Natural Language Processing enables machines to communicate with humans naturally.
- They enable employees to write text with the help of sound.
- They interpret textual information, do a 360-degree analysis of the same, and build actionable reports.
- They detect objects and human faces exceptionally well.
- They detect patterns that are oblivious to the human eye.
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3. AI improves efficiency and cuts costs through innovation
AI is revolutionizing the finance sector through innovation. One such innovation is Robotic Process Automation (RPA). It is a virtual worker that replaces a human and conducts operations at superfast speeds. It also increases efficiency, minimizes human error and reports suggest that they can decrease operational costs by 25%-50%.
RPA is a boon for the finance sector as it takes complete control of data-intensive and repetitive tasks. This process allows employees to work on things that require human ingenuity, intellect, creativity, and a thorough understanding of organizational culture.
AI algorithms can also extract vital information from agreements and present them in an easy-to-read format. Moreover, they can also create smart contracts that can be edited/updated according to all the participating parties’ will.
4. AI is revolutionizing the way people invest and trade
The stock market is dynamic and ever-changing. It has the potential to transform a pauper into a king and vice-versa. But with the change in the international business and political environment, it has become more uncertain than ever. Since the onslaught of the COVID-19 pandemic, the markets are in a roller coaster ride. Millions of people globally have lost billions of dollars.
AI-powered algorithms and high-speed processing abilities provide much-needed relief. They possess the capacity to interpret both — structured (databases and spreadsheets) and unstructured (social media) data. They can correctly estimate which stocks will outperform and which will underperform.
Data-driven investments did a business of more than a trillion dollars in 2018 alone. High-frequency trading or algorithmic trading is picking the pace because of the benefits AI provides.
5. AI helps detect online frauds
Wrong rejection of an authorized transaction is one of the many reasons for massive losses to retailers. Fraudulent activities on credit cards have been on the rise since online shopping portals have opened in huge numbers.
AI and ML technologies show ways of curbing online threats. They keep track of an array of factors, including the customer’s past purchases and buying behavior. They immediately alert the customer and block their credit card if they detect unusual behavior.
The troubleshooting algorithms take the necessary action and create reports so that analysts, consumers, and the security team can work together to reach a workable solution.
6. AI makes the loan disbursal process easy and straightforward
Loan disbursal is a long and tedious process. It takes immense time and effort for the bank to decide the eligible candidates out of a long list of applicants. The following are some of the factors that banks have to check before giving loan:
- Age
- Work experience
- Income
- Spouse’s income
- Occupation
- Credit history
- Repayment period
Even after thoroughly checking the candidate’s financial condition, there are chances that they might fail to repay the loan.
AI algorithms employ rigorous data analysis techniques to estimate the loan repayment capacity of the candidate. It considers multiple data points that enable the loan managers to reach a logical conclusion rather than making a hasty decision.
Another critical point is that banks are now focusing on remote banking applications. These apps make it easier for customers to transfer funds and conduct other banking operations without visiting the branch office. AI and ML algorithms are using this opportunity to access smartphone data to judge whether the candidate is suitable for receiving the loan or not.
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7. AI is becoming the backbone of personalized banking
We are living in times where companies are finding ways to provide top-notch personalized customer experience. For example, Starbucks remembers your favorite coffee and serves you the same, whether in Mumbai or New York.
Similarly, banks are keen on providing personalized banking services that suit the taste of the individual customer. AI and ML algorithms provide the foundation for building chatbots that provide self-help solutions to customers. This step allows their human counterparts to focus on other business-critical issues that require human ingenuity.
Conclusion
AI, ML, Data Analytics, and many other technologies are revolutionizing how the finance sector operates globally. They are:
- Letting the sales teams explore their hidden potential and make better sales.
- Allowing support teams to provide better service experience to customers.
- Supporting risk managers to ascertain the repaying capacity of candidates.
Financial organizations may face a few barriers while implementing AI solutions. But they have to be bold enough to accept the challenges and move forward. New age AI solutions may be a little expensive but are a good investment for the future.
Are you searching for marketing automation software such as ERP and CRM systems to plan your resources efficiently and better deal with your customers? We can help you. At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in.
Disclaimer: All the information, views and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views or objectives of Sage Software Solutions (P) Ltd.
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