The Future of Finance: Top Game-Changing Use Cases of Conversational AI

By Pratik Patil | Date: 20/02/2024

As a result of the development of artificial intelligence (AI) in recent years, the banking world has been subjected to a considerable transformation. Artificial intelligence has become a game-changer, transforming the retail and wholesale banking industries. In the same way that there are "digital natives" who were born and raised with technology and "cloud natives" who were born and raised in the realm of cloud computing, there's now something called "AI natives." These individuals and organizations are leaders in the revolution of artificial intelligence (AI) that is taking place in the banking business. They are professionals in the use of AI. As a result of the development of generative artificial intelligence, this revolution is now considerably more intense. 

AI: What Is It?

The field of computer science known as artificial intelligence focuses on developing intelligent computers that can perform tasks everyday to humans. Computers equipped with artificial intelligence are meant to engage in human activities such as learning, decision-making, planning, and voice recognition.

It is possible for machines to continuously enhance their performance without the need for humans to provide them with prescriptive instructions on how to do so. It is made possible by artificial intelligence. The significance of this lies in a few different reasons. My first point is that we humans know more than we can communicate. To put it another way, humans can do things like identify a face or execute a clever strategy while playing chess. The inability of humans to verbalize our knowledge, on the other hand, meant that we could not automate many tasks until the development of powerful artificial intelligence technologies. Second, artificial intelligence technology achieves superhuman levels of performance, functioning at a faster rate and often with more precision than humans.

The banking experience has been completely transformed due to the proliferation of online and mobile banking, complemented by artificial intelligence. The application of artificial intelligence allows for the customization of user interfaces, the provision of individualized financial advice, and the provision of intelligent chatbot help to consumers. It is one of the top two domains where artificial intelligence is actively used, along with consumer insights.

Why it is essential to understand the process of artificial intelligence (AI)

Artificial intelligence uses machine learning to replicate human intellect if it is successful. Machines can do jobs that would typically need human intellect thanks to artificial intelligence. Both algorithms and historical data are used by AI trends, such as robots, to construct a propensity model. Many different ideas, methods, and technologies affect the impact of artificial intelligence on banking applications. These include the following:

  1. Machine learning: This technique enhances the process of developing analytical models. In addition, it employs machine learning, physics, statistics, and operations research to discover deep data insights without having to depend on pre-programmed starting and ending points.
  2. Neural networks: An example of a sort of machine learning that is still in the process of being developed is the neural network. Neural networks comprise interconnected units that process data by reacting to inputs from the outside world and sending data back and forth amongst themselves. For this method to be effective, it is necessary to repeatedly cycle over the data to discover connections and make meaning of uncertain information.
  3. Deep Learning: Deep learning is a technique that utilizes vast neural networks, processing units, advancements in computer power, and well-established training procedures to identify intricate patterns in big data sets.
  4. Cognitive computing: This is a subfield of artificial intelligence that tries to interact with robots in a natural and human-like way. By evaluating sights, recognizing speech, and behaving in ways that are similar to those of humans, the objective of artificial intelligence (AI) and cognitive computing is to make robots identical to human intelligence.
  5. Natural language processing (NLP) is the capacity of a computer to read, comprehend, and synthesize human language, such as speech. NLP is sometimes known as "natural language processing." It is feasible for humans and robots to communicate via natural language interaction.
  6. Speech understanding: The process of converting spoken words into text the computer can comprehend is called speech recognition. Speech recognition is used in voice-activated systems. Utilizing this technology is essential for the development of virtual helpers like as Siri, Alexa, and Google Assistant.

The Function That Artificial Intelligence Plays In the Finance Sector

The finance business has several applications that make use of artificial intelligence, which are listed below: 

  1. Artificial intelligence in finance enables customers to make rapid and precise financial choices by providing them with the most recent market information. This kind of guidance is referred to as personalized finance guidance. It is reasonable to expect artificial intelligence to give clients individualized financial counsel.
  2. It is undoubtedly the case that digital wallets have driven the digital money trend to reach new heights. Customers can purchase online by providing their mobile phone number or a one-time password (OTP), a feature that is one of the distinguishing characteristics of digital wallets.
  3. Interactive Voice Response System (IVRS): Consumers are reached via an interactive voice response system (IVRS). By providing accurate responses to clients' questions, this application's primary objective is to provide consumers with an excellent banking experience.

How do conversational AI consultants provide strategic guidance?

  1. Service to customers that is individualized 

One of the most apparent applications of conversational artificial intelligence is providing individualized customer support on a large scale. Artificial intelligence may examine client data and prior encounters to offer individualized solutions. A wide variety of data analysis tasks, such as data processing, anomaly detection, and reporting, may be automated using artificial intelligence. 

  1. Streamline the procedure of placing orders

Your chatbot, driven by artificial intelligence, may assist clients in placing purchases, providing them with real-time suggestions and possibilities to upsell. AI algorithms process orders quickly and precisely that human techniques cannot match. This ensures that orders are fulfilled rapidly and considerably reduces the time needed for processing. Accurately estimating demand is the driving force behind effective fulfilment procedures. During demand forecasting, data predicts the quantity of products buyers purchase during a specific period.

  1. Enhanced client contentment 

Using conversational artificial intelligence, your support staff can handle client complaints, resolve problems with tier-1 help, and escalate difficult conversations. Furthermore, they can do all of this without ever interacting with consumers, which saves time and improves the resolution of first-contact issues, ultimately resulting in increased customer satisfaction. In addition, the research investigates the combination of Blockchain technology and artificial intelligence with Internet of Things applications. It helps shed light on the possibility of safe and transparent transactions encouraging consumer trust and loyalty.

  1. Enhanced self-service capabilities

Self-service solutions that are driven by artificial intelligence have the potential to minimize the amount of time that customers have to wait for answers to frequently requested queries and issues.

  1. Instant feedback

Customers can provide and receive fast feedback regarding a product or service via artificial intelligence, which not only improves the feedback loop but also provides you with valuable insights into purchase criteria and supports optimizations. 

  1. Response generation

It is the purpose of the conversational AI to provide replies that are appropriate for the inquiry's difficulty level. It may employ predefined, templated replies for queries that are relatively straightforward. Conversational artificial intelligence, on the other hand, makes use of Natural Language Generation (NLG) methods for more complex questions to generate responses that are both distinctive and culturally suitable dynamically.

Use cases of Conversational AI in the Financial Services Industry

  1. Managing the human resources available

Conversational artificial intelligence chatbots, which apply to businesses, have become the assistants of human resource managers. They handle employee requests and provide employees with the ability to self-service repetitive activities such as onboarding, ticket production, and data changes.

When HR managers have more time on their hands, they can better focus on increasing the percentage of employees who are satisfied with their jobs and collecting more input from each worker. The latter is required to make changes that have a significant effect and stay up with the ever-increasing demands of employees.

  1. Security awareness training

As a result of their ability to respond to each employee request and provide particular information about their scores, conversational artificial intelligence systems that have been developed expressly to monitor security awareness tests enable improved compliance with security requirements. Conversational artificial intelligence chatbots can do more than just deliver Knowledge and watch test results; they can also give pertinent advice, remind staff about recent changes in cybersecurity rules, and keep them up to speed with the most current safety measures. 

The procedure was able to be facilitated by conversational AI, which also assisted financial institutions in developing a digital experience that was superior and more enjoyable for their workers and customers.

  1. Acquiring Knowledge

Conversational artificial intelligence chatbots may also be used for employee education, making the learning process more organized and individualized for each participant. This is in addition to their use in security testing. Conversational artificial intelligence can track employee scores, keep track of their general course execution, and provide reports that identify their success. However, this is not all that it can do. Conversational artificial intelligence has the potential to regulate online training for workers, evaluate their knowledge, and participate in automated discussions in certain types of situations.

  1. Administration of Regulations

Several strict regulatory requirements are imposed on the BFSI business. By automating data analysis and reporting, artificial intelligence may assist organizations in maintaining compliance. Transactions may be monitored for suspicious behaviours, and compliance reports can be generated more effectively than possible with manual methods.

  • Loan denials

The banking industry's dependence on artificial intelligence, particularly in the loan decision-making process, becomes readily apparent. Using artificial intelligence, creditworthiness can be rigorously evaluated, appropriate credit limits can be created, and loan prices can be tailored. The capacity of generative artificial intelligence to examine vast amounts of data, ranging from credit ratings to minor alterations in financial behaviors, enables it to provide a more in-depth analysis that may spot possible warning signs.

Bottom Line :

Conversational AI Consulting provides comprehensive solutions that are ethically sound and compliant with developing legislation. These solutions are offered from beginning to finish. They can identify abnormalities in transactions, identify fraudulent activity, provide assistance in conversational finance through chatbots, assist in financial forecasting, guarantee data privacy through synthetic data, and assist in risk management.

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