Artificial intelligence is rapidly changing the state of finance. There is a lot of discussion about financial institutions relying on AI technology to better serve their customers.
Intuitively, this also means that consumers stand to benefit from advances in artificial intelligence as well. However, they should not be passive about waiting for their bank, insurance company or other financial institution to advise them about new technology that can assist them.
It is important to be informed about the potential benefits of machine learning as a consumer. You might have access to a number of websites that use AI technology to help save money, get new financing opportunities and avoid serious financial risks. These include services that help people calculate their student loan repayments or see their chances of getting approved for a mortgage.
Before you can understand the benefits that machine learning offers to you as a customer, it is a good idea to see how it is affecting the industry. This serves as a starting point for using it to improve your own financial situation.
How the financial industry is evolving with AI technology
A recent poll found that over 80% of financial institutions stated that AI is a key technology for their business. A surprising four out of five financial professionals believe big data and AI is upending their business models. However, the industry continues to face barriers and adoption of AI within the financial industry is still lagging.
The data, from a global report on banking by NTT DATA, shows that the financial sector sees AI as a key to success in the near future, even if it has not been widely implemented yet. Indeed, its integration, the creation of a new startup-style culture in an older, stable business and changes in organizational competencies are the main challenges for AI to implement personalization of services for customers. Over half of respondents said each of these three issues was a key selling point for AI in the financial sector.
However, only 16% of financial institutions are leveraging data to ensure customers have access to specific, individual financial guidance that will help them achieve their life goals and projects. Also, just 32% of firms are leveraging data to provide “generalized personalization,” in other words, recommendations to targeted customer demographics.
The main challenges for customer service and customer retention strategies utilized by financial institutions include: using AI to provide personalized advice to individual customers, building customer trust, addressing challenges in the Fintech industry, limiting face-to-face interactions with customers and slowing new product launches.
Artificial Intelligence also makes it possible to offer services that cater to each customer, an opportunity to expand their market share, as well as to adapt to their needs with a closer and more concrete approach.
Investing in personalization will help financial companies expand their customer base and retain existing customers more easily, although this requires them to address multiple challenges in the implementation phase, as it requires changes from the commercial perspective. These issues all are reasons AI is very helpful in finance. Choosing to change business culture, orienting technology to be responsive to business and creating more emotional connections will be key in this environment.
What are some ways that you can use AI to help with your own finances as a consumer?
Now that you have a better idea of the impact of artificial intelligence technology in finance, you should be able to brainstorm some ways to use machine learning services to help with your own finance. There are a number of online machine learning tools that can help you.
Here are some opportunities that you might want to take advantage of:
- You can get a better sense of your likelihood of getting approved for a loan with a various credit score and income. This will save you the hassle of applying for a loan that you might not qualify for and hurting your credit score, since hard credit checks by lenders will count against your credit rating.
- You can use machine learning tools to identify any possibilities that your identity or financial information may have been compromised. This will prevent you from having to deal with all of the costs associated with identity theft.
- A lot of new AI tools make it easier to do a deep dive in your financial history. This will help you identify mistakes on your credit report or insurance accounts, which could be costing you higher interest rates or premiums.
- You can use sophisticated data mining tools to identify new deals, coupons and discounts. This will help you save money.
AI technology can be very helpful for your personal finance. You should look into the various machine learning tools available to people trying to get their financial house in order.
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