AI Articles and Analysis in Finance

Banks are in one of the best positions for leveraging AI in the coming years because the largest banks have massive volumes of historical data on customers and transactions that can be fed into machine learning algorithms. We recently completed our Emerj AI in Banking Vendor Scorecard and Capability Map in which we explored which AI capabilities banks were taking advantage of the most and which they might be able to leverage in the future.

Event Title: The launch of our Emerj AI in Banking Vendor Scorecard and Capability Map 2019 report

AI and machine learning have had successful applications in the financial sector even before the entry of the mobile banking ecosystem. AI is being used to leverage insights from data for financial investing and trading, wealth management, asset management, and risk management.

Customer data is essential for insurance firms to stay competitive in the coming decade. Insurance companies at present have backlogs of data on past and existing customers in the form of policy agreements, applications, and claims forms. They’ve also collected millions of images showing car damage, property damage, and personal injuries.

AI software for corporate banks is not too different from those for retail banks, although their data requirements and intentions for the software will differ. AI vendors currently selling to banks typically have clients covering all types of banking, but few specify any of their solutions to be for corporate banking specifically. Instead, they market themselves across the entire industry and give corporate banking details where appropriate.

There's an entire artificial intelligence ecosystem for enterprise search. Most of this is in a purely digital world. Most vendors help with a layer of AI-enabled search that understands terms or phrases and is able to return the results or answers to questions that someone types in. But the problem is compounded when it comes to searching the physical world.

Large banks deal with millions of documents every day across their corporate offices and numerous branches. Although one might assume that these documents are digital, in many cases, even the largest banks store old physical documents in file cabinets and boxes off the bank’s premises, and even those that are kept on-site might be relegated to storage units amongst hundreds of thousands of other documents.

Credit card companies could make use of AI applications across multiple business areas. AI-based fraud detection is among the most widely discussed AI applications in the financial sector, and it seems to work for credit cards similarly to how it works for banks. Additionally, credit card companies and financial institutions could use AI software to improve customer service and develop customer-targeted marketing campaigns.