AI and financial services go hand in hand today and this advanced tech is very widely used. From analyzing information to data collection and streamlining processes, there are so many ways in which AI has helped to drive the financial services sector forward - and will continue to do so. According to research AI is expected to save banks $447 billion by 2023* (Hash Studio Technologies, A. Srivastava, May 2022) We are increasingly seeing more regulation relating to AI, especially for emerging areas in financial services, and this technology is going to keep changing and innovating. So, what does the future of AI in financial services look like?
- More regulation to create greater security.
Much of the regulation being introduced today relates to AI-enabled behavior manipulation techniques and the impact that these can have on civil liberties. Other areas that lawmakers are focusing on include transparency requirements for certain AI use cases, as well as specific regulatory requirements for the most high-risk cases. There is momentum with Governments and organizations around the globe establishing regulations and guidelines to include inclusivity and fair treatment and handling of privacy data and transparency. To a point where Deloitte 2022** predicts far more scrutiny towards regulatory rules towards AI starting in the coming years.
- Tackling cybercrime.
Roughly 30% of all financial institutions have been successfully attacked with an average of 85 attack attempts on each single business happening every year and these figures are increasing year on year*** AI is already being put to work to better tackle financial crime and has a lot of potential in this area. For example, much legacy anti-money laundering technology is simply ineffective against the sophisticated tools used by cyber criminals today. AI can help redress the balance and make anti-money laundering measures more effective, especially when it comes to monitoring. Greater use of AI will also provide financial institutions with more options in terms of reducing cyber-attacks and spotting suspicious activity in real time.
- A focus on fraud.
The permanent shift to contactless payments and global digital banking has seen a huge rise in the volume of fraud in the financial services world. AI has a bold, bright future in helping to tackle fraud, whether that relates to identifying malicious card payments or helping to highlight identity theft. The nature of AI, its ability to speed up data analysis and decision-making, will allow it to be more responsive to information encountered within systems going forward.
- More customer-centric services.
This is one area where AI can make possibly the biggest difference - with respect to the way that customers experience financial services. Chatbots are going to continue to grow, for example, with successful banking-related chatbot interactions rising by 3,1505% between 2019-2023****. But this isn’t just about providing trouble-shooting chatbots as much as many more tech-driven solutions that can make customers more engaged with financial services brands. AI provides businesses in the financial services industry with the tools to create a seamless user experience, one that customers are increasingly going to come to expect. It will be vital to competitiveness for organizations to be able to deliver on this.
- The drive to upskill workforces.
Investing in upskilling is how business will derive the most value from buying into tech like AI. Currently, the financial services sector is at the halfway point with upskilling with one recent study identifying 49% of respondents having already implemented training schemes to help staff better understand AI. So, there is still plenty more to do.
AI clearly has a vital role to play in financial services, not just today but as the sector evolves into the future too.
At Volt our teams are experts at devising and tailoring tactical and strategic staffing solutions along with our innovative approach guarantees our clients unique bespoke solution to match your needs and challenges across the globe. Contact us today in regards to your talent recruitment needs.
*Future of AI Intelligence in Banking & Financial Industries. May 2022, Hash Studio Technologies, Author Akshara Srivastava https://hashstudioz.com/blog/future-of-artificial-intelligence-in-banking-financial-industries/
**AI to see stricter regulatory scrutiny starting in 2022 predicts Deloitte, Author Lance Whitney, Tech Republic, 2021 https://www.techrepublic.com/article/ai-to-see-stricter-regulatory-scrutiny-starting-in-2022-predicts-deloitte/
***Top 5 Industries targeted by cyberattacks, HackCtrl, https://hackcontrol.org/blog/industries-targeted-by-cyberattacks/
****5 ways robots and AI transform businesses and how we live, author Shawn Tan, Technology Magazine May 2022, https://technologymagazine.com/ai-and-machine-learning/5-ways-robots-and-ai-transform-businesses-and-how-we-live