How AI Technology is shaping the Future of Consumer Credit?

AI (Artificial Technology) has lots of promises in almost all fields of life. Similarly, AI has also some promises in the financial sector. It is helping the industries and consumers in various ways like it is enhancing the userexperience of the consumers and it is also automating the payment process. AI is also transforming the financial services of different industries in different ways. According to statistics, the banking sector will save$1 trillion by using AI services until 2030. Till 2022, there will be a 14% increase in the AI financial services jobs. Here, we will discuss how AI technology is shaping the future of consumer credit.

 

Customer Service:

All the financial institutions are providing the AI services to their customersto provide the best services and to solve problems of the customers. To provide the best solutions to the problems of the consumers, they have to evaluate the huge amount of data. To evaluate such a huge amount of data for a financial company is difficult. That’s why they are using AI to evaluate such huge amount of data for the customers. Most people think that by using robots for providing the customer care services to the consumers, we are decreasing the loyalty of the customers. Its reason is that most of the people think that robots have less personalization than human beings. That is not true because lots of banks are successfully using AI to satisfy their customers. Banks are using AI to solve queries of the customers from the chatbots to humanoids. Another important aspect of this AI assistance in the banks is that it is providing financial services to the customers around the clock without any time limitation.

 

Compliance and Fraud Detection:

For a financial company, to avoid or to overcome the online frauds is a real challenge. Due to these online frauds, most of the customers don’t like to share their credit card information with the companies. To get rid of online fraud, the companies are also getting help from artificial intelligence. With the help of artificial intelligence, they can easily and efficiently overcome and avoid the challenges of online fraud. To overcome online frauds, these companies are doing lots of things like these companies are regulating the machine learning process and these companies are identifying the issues by taking an in-depth analysis of the issues. With the help of the legacy infrastructure of artificial intelligence, it is also helpful for companies to monitor criminal activities. In the banking sector, money laundering is considered as one of the most famous concerns. With the help of artificial intelligence, we can also get an idea about the suspicious transactions. Some banks have taken some anti-money laundering steps and with the help of these steps, they can easily detect the suspicious transactions in their banks. It means that AI is enhancing the transaction monitoring systems in the banks.

 

Process Automation:

Process automation is known as one of the most essential aspects of the online financial system.It is being used by most of financial institutions. As this aspect is relevant to the cognitive abilities of the people, therefore, it is also known as one of the most complicated processes in the financial system. By implementing AI technologies in the banking system, most of the banks are also easily incorporating these complex automation processes. JP Morgan Chase invented this kind of project in 2017. With the help of this project, we can analyze the legal documents. After analyzing the legal documents with the help of COIN, we can also extract the relevant clauses and data from these legal documents. That’s why the banks can review several legal documents just within seconds. Another benefit of this technology is that this technology is providing accurate data. That’s why lots of companies are investing a huge amount on this technology. The estimated budget of this technology is $11.4 billion in the banks.

 

Get Access Unbanked Population:

It is a fact that almost all banks are giving loans to people. If a person has a bank account, he has a credit history and banks can easily get an idea about his financial conditions. On the other hand, if a customer doesn’t have an account, he doesn’t have a credit card history. Therefore, without any kind of financial information, it is difficult for the banks to give loans to those people. AI is also solving this problem of bankers. With the help of AI technology, the banks and other loan providing companies are getting the required information about the people by using mobile apps. With the help of these mobile apps, the banks can easily assess enough information about his support system and they can also prepare a plan for the repayment system for those people. It means that the companies can easily create the loan profiles of the customers and these loan profiles are free from the risks. Equifax is known as the consumer credit card reporting agency. It has launched a credit scoring system that is known as NeuroDecision. With the help of this credit scoring system, the companies can easily get an idea about the financial conditions of a person who doesn’t have enough credit card information.

 

Smart Investment Banking and Trading:

In the investment banking and trading sector, AI is also helpful for the people. Its reason is that in this sector, this technology is working just like indispensable technology. With the help of AI technology, they can easily grab the advantage of all the markets. AI technology is also offering an automated banking system for investors. This automated banking system is helpful for them to buy and sell the products. There is also some algorithm-driven trading systems. With the help of these algorithm driving systems, we can increase efficiency. Some tools are also introduced for the traders to make pricing decisions. With the help of these tools, the traders can easily create the statistical predictions for the traders and they can use these statistical predictions to engage the traders.

 

Author Bio:

 

Susan Wray is a professional author based in Manchester. She has completed her Bachelor's Degree in Economics from the University of Manchester. She currently lives in the UK and works as a content writer at CheapEssayWritingUK. Her job role allows her to provide students with unique, high-quality PhD dissertation writing services on any subject.