Artificial Intelligence (AI) technologies are significantly improving the way we work, learn, shop, and move. Their impact on improving operational and industrial processes is increasing steadily with more technological advancements. This blog discusses the impact of AI on fintech solutions to enhance the end user experience. Leading financial services companies are using AI technologies for fast and secure funds transfer, reliable customer support, and in-depth market analysis. Even the services from AI app development companies are assisting financial service providers to take advantage of technology.
Industry leaders are embracing AI to provide seamless services with a personalized experience. AI solutions are proving to be effective at overcoming financial process challenges. They play a critical role in developing cost-efficient solutions for the customers of banks and financial services companies.
AI solutions can evaluate customer needs to recommend relevant products accordingly. Several banks now use digital assistants to assist customers in keeping track of their finances and recommending savings and investment options. Digital assistants use natural language processing (NLP) to understand customers’ behavior and interact with them. Adding a layer of recommendation model to banking systems enables digital assistants to recommend tailored products and services.
Leading insurance company Sun Life created ‘Ella’ the virtual assistant, to keep its customers on top of their insurance plans. ‘Ella’ aids its customers to appreciate the plans provided by their employers to improve the quality of their services. Ella provides timely alerts such as, ‘Wellness benefits are about to expire’ or ‘Your child will be off benefits soon’; these assistants are growing in demand.
Chatbots augment the efforts of banks to assist customers with their queries about transactions. Bank managers grant access to chatbots for sifting through transactions and understanding customer queries using NLP. It ensures that account holders get an immediate and accurate response to requests such as balance inquiries, transactions, general account information, and more.
Bank of America’s ‘Erica’, is a good example of a chatbot that acts as a digital financial assistant for their customers.
Investing money in stocks can be a tricky affair. Sound investments require investors to be logical and practical while making trading decisions. Predicting the behavior of stocks requires in-depth analysis, a task best suited for software that has predictive analytics features. It can enable customers to make smart investments.
Kai is an AI-powered system, that ranks stocks according to Kai score. It provides an idea about the future behavior of stocks on the basis of millions of data points. Kai not only analyzes structured financial data, but it also uses NLP to gauge market sentiments. It analyzes unstructured data like news, blogs, social media posts using big data to make the correct suggestions. The mechanism is known as algorithmic trading.
Retaining a customer is harder than gaining a new customer in today’s saturated and competitive economy. Churn rate is a key performance indicator (KPI) across all businesses and industries. Predicting the upcoming churns can enable companies to take preventive actions and retain customers.
AI can provide managers with a prioritized list of customers who are likely to cancel their policy. They can then use the list to reach out to customers with better deals. The AI model is based on the customer behavior data that lists explainer variables to churn effect.
Few indicators of churn behavior are users unsubscribing from receiving newsletter and mailings, instances of reading account policies, downloading account statements multiple times, and more. By processing this data, banks can improve their services and offerings to retain their customers.
People insure their life, health, and vehicles through insurance companies. The insurance industry functions in a standard way, so claiming the amount when something goes wrong can be tedious. AI can handle the process of verification, data management, and payment disbursement. From initiating a claim to receiving the amount, AI-powered transactional bots can simplify processes for improved customer experience. Transactional bots can provide an immersive experience to customers by asking a series of questions required for the claim.
For instance, ICICI bank has already implemented AI to improve processes in ICICI Lombard, its insurance subsidiary. Image recognition, fraud detection, and payout prediction have transformed the entire process. AI streamlines ICICI Lombard’s workflows to execute the most basic as well as complex tasks. As a result, the bank’s operational costs have reduced and consumers receive a seamless experience.
The finance industry can gain several benefits by adopting AI technologies. AI has already demonstrated its effectiveness in resolving issues and simplifying the user experience. With more advancements, AI applications are expected to provide more opportunities to banks and institutions as wells as critical information to customers. Consequently, AI app development services will also see an increase in demand owing to market trends and demands.
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