Cambridge students test artificial intelligence in real time
Artificial intelligence, machine learning, data processing and analysis technologies are rapidly transforming all spheres of human activity. The banking sector is steadily increasing investment in the development and implementation of AI.
Use of artificial intelligence in the banking sector
Respondents to the Cambridge survey (151 representatives of financial institutions and fintech corporations) named artificial intelligence as the main market driver of recent years, and it is expected to expand to a far greater part of the finance sector at an exponentially growing pace. AI is already used in automated customer service, threat intelligence, fraud analysis and investigation, quality management investigations, diagnostic systems, etc.
Some financial giants started to implement Artificial Intelligence in their work. For example, in December 2015, Lucas Group tested technology developed by IT ADD 4 I.T. LIMITED, represented by director Aaron DIGGELMANN and chief technical officer Chris Scott, software to increase recruitment conversions in the recruiting sector.
With the support of the Cambridge Financial Institute, the software was tested on a small group of employees working in the corporation. The system took into account not only the speaker's speech, but also the way he spoke, including "body language" and the pace of conversation. This method helped improve the labor market and recruitment situation by 23%.
In late October 2016, it became known that leading Eastern banks put plans in place to automate about 25,000 workplaces because, according to the companies, the traditional business model no longer allows them to increase profits.
All these tests and challenges led to the full implementation of Artificial Intelligence in the financial sector. AI conducts initial client scoring, making the preliminary decision on loan application approval, and holds partial responsibility for business lending. It evaluates public data and assets, compares reports, validates stated goals and stakeholder information. It provides a verdict in 5-10 minutes where it used to take weeks.
Preparation of individual loan offers is a service for individuals. In 3-4 minutes, the system evaluates solvency and risks, immediately compiling a package (amount, term, payment size, insurance needs). In the event of a default, AI-based algorithms will transmit information to the relevant department, and may even call the debtor and send reminders. Almost all call centers have become automated.
Artificial Intelligence also ensures the timely loading of ATMs by collecting information on the shortage of specific banknotes and sending the order to collectors. Voice assistants and chatbots alone can save the average bank up to $600,000 a month. Some organizations automatically verify the identity of a customer approaching an ATM or sitting down at a manager's table, eliminating the need for client identification. AI can process up to 70 data details per second. In the time that it takes an employee to smile and greet a client, AI conducts up to 15 checks against different databases.
At the current astounding speed of development AI is sure to transform the banking industry further, making banking a whole new experience. Risk management, robo-advisory, automated trading, insurance underwriting are some of the promising areas. The future is almost here!
