From established institutions to innovative FinTech startups, financial organisations are embracing AI technology to improve their offerings and operations.
A report by Statista projects global investment in AI for financial services to reach a staggering $26.5 billion by 2025, highlighting the growing importance of AI in finance. Additionally, given the significant impact of AI technology, this article will explore the top 10 AI applications transforming the financial services sector.
Introduction to AI in Financial Services
The financial sector is grappling with a growing tide of data and intricate market dynamics. Furthermore, AI technology has emerged as a powerful tool to navigate this complexity. ML models, for instance, can analyse vast amounts of transaction data in real-time, identify unusual patterns, and flag potential fraudulent activities.
Moreover, AI’s impact extends to automating manual tasks that burden financial institutions. AI tools can efficiently process large datasets, generate reports, and handle administrative duties. Also, this shift towards automation allows financial institutions to focus their resources on higher-value and strategic endeavours.
1. Signifyd
Signifyd offers a comprehensive Commerce Protection Platform designed to empower businesses with a holistic approach to fraud and abuse prevention.
By using machine learning (ML) models, Signifyd’s Fraud Protection ensures exceptional accuracy in eliminating fraudulent transactions while automating order approvals. Additionally, this is further bolstered by Abuse Prevention, a feature that addresses customer abuse behaviours and simultaneously rewards legitimate customers.
2. KAI
Kasisto offers a conversational AI platform, KAI, designed to enhance customer experiences within the financial sector. KAI tackles two key challenges for banks: reducing call centre volume and empowering customers. Equally important, it achieves this by providing self-service options and solutions through AI-powered chatbots.
If a customer inquiry extends beyond the chatbot’s capabilities, KAI seamlessly transfers the conversation to a human customer service representative, ensuring a smooth handover and comprehensive resolution.
3. Entera
Entera, an AI application designed for residential real estate investors, streamlines the entire investment lifecycle. Combining SaaS tools and expert services, Entera empowers investors to buy, sell, and manage single-family homes. Furthermore, the platform grants access to a comprehensive database of on-market and off-market properties, simplifies transaction processes, and facilitates market trend discovery.
4. Range
Aimed at simplifying wealth management, Range offers a unique blend of AI technology and human expertise. This unique approach integrates investment management, tax planning, and estate planning services, all accessible through a user-friendly interface. Tailored to meet individual goals through a unified view of all financial activities, Range also offers clients the guidance of certified financial planners when needed.
5. Zest AI
Zest AI uses ML and artificial intelligence to address challenges in credit risk assessment for financial institutions. Their platform analyses vast datasets to identify patterns missed by traditional models, addressing longstanding challenges faced by financial institutions. Also, this AI technology aims to reduce lending bias, improve risk prediction, and expand access to credit for borrowers.
6. Upstart
Upstart is a fintech company using AI technology to improve credit accessibility. Their AI-powered lending platform assists financial institutions in making informed lending decisions by analysing a broader spectrum of data beyond traditional credit scores. This approach aims to expand credit inclusion, allowing borrowers with limited credit history to qualify for loans.
7. Proofpoint
Proofpoint offers a suite of cybersecurity solutions designed to shield organisations from sophisticated cyberattacks and compliance concerns. This AI application addresses people, data, and brand protection, encompassing areas like email security, data loss prevention, and threat intelligence. Recognizing people as the most susceptible targets, Proofpoint prioritises a human-centric approach to ensure the very foundation of an organisation’s security posture is fortified.
8. Brighterion
Brighterion tackles complex decision-making across industries like finance and healthcare with its unique model-based AI technology This model-based system utilises Smart Agents, enabling it to personalise, adapt, and continuously learn.
After analysing and observing data, the platform creates virtual profiles that update in real-time. This allows for a holistic one-on-one analysis, granting organisations a comprehensive 360-degree view of each entity’s behaviour.
9. Kavout
Kavout stands out in the industry by harnessing the power of ML and quantitative analysis. This approach allows them to process vast amounts of unstructured data and identify real-time patterns within the financial markets.
One of Kavout’s core solutions is the K Score, an AI-powered stock ranking system. Furthermore, by analysing this massive data pool, the K Score condenses the information into a single numerical ranking for each stock.
10. Trumid
In the fixed-income trading space, Trumid is a company using advanced analytics and AI to optimise the credit trading experience. Their suite of data-driven tools and proprietary Fair Value Model Price offers real-time pricing intelligence for over 20,000 USD-denominated corporate bonds. In addition, this engine analyses and adapts to market fluctuations, equipping traders with valuable insights to guide data-driven trading decisions.
- Artificial Intelligence in FinTech
