Thursday, February 22, 2024

Data Science can fix Traditional Financial Services

The advancement and integration of artificial intelligence, machine learning, and data science in technology automation have resulted in the development of some of the most advanced, efficient, and secure financial services systems available today. These technologies have impacted and improved operational capabilities across industries, ushering in a period of superior performance backed by an increase in the availability of high-quality information and data.

This technological revolution has had a significant impact on financial services, which has seen the rise of several startups that use AI and data science to predict cash flow events, assess creditworthiness, and detect fraud. To gain a competitive advantage, startups using AI are making better data-driven decisions, increasing profits directly through efficient targeting, automating repetitive tasks, and much more. As a result, we have made significant progress in financial inclusion, significantly increasing penetration to previously unserviced populations. Furthermore, global AI spending is expected to exceed US$110 billion by 2024, nearly doubling the total from 2020.

Automation has been one of the most important features provided by AI. AI-based systems can simplify extracting information from documents, digitizing them, and processing forms, to name a few examples, while optical character recognition can significantly increase the efficacy of time-consuming processes. The advantages of using AI systems can significantly improve financial institutions’ regulatory, supervisory, and oversight capabilities.

Thus, AI, ML, and data science are providing the financial industry with newfound robustness and resilience, assisting them in lowering the cost of credit underwriting, adding another layer of complexity to algorithmic trading, and providing secure, efficient, and transparent ways of operating. The incorporation of such innovative technologies is advancing the country’s potential for financial inclusion, providing numerous opportunities for people to gain financial independence while also improving the quality of products and services available.