How AI Technologies Create Value in Financial Services
Financial service providers – banks, wealth management advisors, and fintech startups – are embracing the application of Artificial Intelligence (AI) and machine learning throughout the industry. What's notable is that these emerging technologies are gaining significant momentum and delivering unique value to consumers in financial services as well as other industries. According to Accenture, AI can add value in five different ways:
- Intelligent Automation – Automation technologies can create more efficient processes or even process and understand new rules and regulations. For example, IBM's Watson is being used to understand complex regulations, such as additional reporting requirements of the Markets in Financial Instruments Directive and the Home Mortgage Disclosure Act.
- Enhanced Judgment – It can improve the quality of human decision making by gathering information and then applying guidelines against the information gathered. Underwriters often spend half their time gathering information before combing through the 8,000-page underwriting "bible" for guidance before they make a decision on an insurance policy. Artificial intelligence is able to not only gather this information, it can also apply the necessary guidelines and reach a decision quickly, not several days.
- Enhanced Interaction – It can create hyper-personalized customer experiences. By examining a customer's spending and saving habits, an AI system can help a user set and reach a savings goal, find ways to create a budget and reduce unnecessary spending, or even advise them on the availability of certain financial products. This also helps financial professionals better understand their clients, and devote more time on their more profitable relationships.
- Intelligent Products – It can create a new class of products, services, and business models. Not only can AI show customers new opportunities that can help them financially, it can even help banks and wealth advisors create new portfolios. Certain AI apps can help banks build tools that factor in user data, risk aversion, personal demographics, and earning power. Best of all, each portfolio is built quickly and is designed to suit exactly that user, rather than lumping them into large groups based on one or two factors.
- Responsible AI – AI technologies can be used to aid in compliance with new regulations or even detecting fraud. Financial professionals are able to use AI systems to query specific regulatory obligations to see AI-generated summaries and determine whether they apply to a specific situation. They can also be used to identify potentially fraudulent transactions, such as on a stock trading floor or even a bank customer's credit card. At the same time, these systems can "learn" to recognize false positives (such as flagging proper transactions as fraudulent) and avoid alerting human minders to these non-fraudulent transactions.
Envestnet | Yodlee is demoing at BankAI 2017 Conference
BankAI 2017 is bringing together AI pioneers, experts, and new practitioners together for two days of collaboration, sharing of ideas, and learning about new practices and technologies. Attendees will include financial executives, programmers, developers, and fintech startups, all eager to learn about the newest technologies available to financial service professionals. The event will be held on October 16 –17 at the Renaissance Boston Waterfront in Boston, Massachusetts. Our team at Envestnet | Yodlee will have a presence at the show, both as an exhibitor and a presenter in the conference demo sessions. Attendees will have the opportunity to hear from Bill Parsons, General Manager and SVP of Products and Data Analytics; and Om Deshmukh, Director of Data Sciences at Envestnet | Yodlee on Tuesday, October 17th at 10:15am ET. The conference comes on the heels of our recent Best of Show award at the FinovateFall 2017 conference, where we demonstrated our vision for the Envestnet | Yodlee Artificial Intelligence FinCheck app, which is a part of our larger Personal Financial Wellness solution. For more information on our award winning AI FinCheck app, please visit yodlee.com/fincheck.
