AI Articles and Analysis in Finance

An operational compliance framework is critical for banks and other financial institutions (FIs). However, it is a tremendous challenge to constantly and uniformly comply with regulations, guidelines, and laws, given the complexity and immensity of legislation.

The era of humans serving as sole agents for lending and underwriting is no more. Machine learning and AI are now more ubiquitous within financial institutions and insurance companies, thanks in no small part to the automation of lending and underwriting processes. 

In 2020, fines for Anti-Money Laundering (AML) noncompliance reached $2.2 billion, up nearly 400% from 2019, according to Kroll data. The trend continued into 2021. Through June 30, AML fines totaled $994 million, suggesting another year of strict regulatory enforcement action. 

Like many legacy and document-heavy industries in 2022, the entire financial services sector is undergoing a transformation through AI capabilities. These technologies have successfully disrupted many systems and processes once considered sacrosanct: personal financial transactions, collection and analysis of consumer data, personalized offerings of financial products and services, and more.

In June 2014, a bombshell study from researchers at New York and McGill Universities found that a quarter of all mergers and acquisitions of public companies between 1996 and 2012 involved some measurable degree of insider trading.

Chatbots have been a fixture of customer service life for the past few years and in the public eye for nearly a decade. Unfortunately, chatbots have garnered a reputation in that time as a generally mediocre technology, or otherwise the apex of merely a passing fad.

Banking is an industry well-known for its robust office culture. Even though banks performed incredibly well during the pandemic – record profits despite global uncertainty – some prominent banking leaders wanted their employees back in the office. Unfortunately for these leaders, they are fighting a losing battle. 

In the wake of COVID-19, conversation agents remain a huge focus for financial institutions looking to maintain and winning market share through a seamless digital experience for the customer, not to mention cost savings in branches and personnel. Though that interest is growing far beyond customer experience with the promise of spare banking use cases hinting that conversational AI can also help streamline internal processes between departments for employees.