Professional Documents
Culture Documents
The Growing Impact of AI in Financial Services (Chapter-2) - by Venkat Vajradhar - Feb, 2021 - Medium
The Growing Impact of AI in Financial Services (Chapter-2) - by Venkat Vajradhar - Feb, 2021 - Medium
The Growing Impact of AI in Financial Services (Chapter-2) - by Venkat Vajradhar - Feb, 2021 - Medium
Open in app
venkat vajradhar
24 Followers About
4. AI and Trading
Data-based investments have been steadily rising over the past 5 years and closed in
2018 with trillions of dollars. This is also known as algorithmic, quantitative, or high-
frequency trading.
https://pvvajradhar.medium.com/the-growing-impact-of-ai-in-financial-services-chapter-2-3f4938f2b68d 1/5
2/10/2021 The Growing Impact of AI in Financial Services (chapter-2) | by venkat vajradhar | Feb, 2021 | Medium
This type of business is rapidly expanding in global stock markets and for good reason:
Artificial intelligence offers multiple important benefits.
Intelligent trading systems monitor both structured (database, spreadsheets, etc.) and
structured (social media, news, etc.) data that people take time to process. The adage
“time is money” is nowhere better than trading: faster processing means faster decisions,
faster transactions.
Because algorithms can test trading systems based on past data and bring the validation
process to a whole new level before being broadcast live, predictions for stock
performance are more accurate.
AI makes recommendations for strong portfolios depending on the short- and long-term
goals of a particular investor; Multiple financial institutions trust AI to manage their
entire portfolio.
https://pvvajradhar.medium.com/the-growing-impact-of-ai-in-financial-services-chapter-2-3f4938f2b68d 2/5
2/10/2021 The Growing Impact of AI in Financial Services (chapter-2) | by venkat vajradhar | Feb, 2021 | Medium
you should expect amazing improvements here. Both tools can check balances, schedule
payments, view account activity, and more.
Many apps provide personalized financial advice and help individuals achieve their
financial goals. These intelligent systems track revenue, required recurring expenses and
spending habits, and come up with optimized planning and financial tips.
Major U.S. banks such as Wells Fargo, Bank of America, and Chase have launched
mobile banking applications that allow customers to pay bills, plan their expenses, and
communicate with their bank more easily and systematically, from receiving
information to completing transactions.
The use of robotic process automation for high-frequency frequency repetitive tasks
eliminates room for human error and manipulates labor on processes that require
human intervention.
JPMorgan Chase, a leading financial institution, has been successfully operating robotic
process automation (RPA) for some time, taking data, knowing your customer terms,
and capturing documents. RPA is one of the ‘five emerging technologies used by
JPMorgan Chase to improve the cash management process.
https://pvvajradhar.medium.com/the-growing-impact-of-ai-in-financial-services-chapter-2-3f4938f2b68d 3/5
2/10/2021 The Growing Impact of AI in Financial Services (chapter-2) | by venkat vajradhar | Feb, 2021 | Medium
There are high hopes to increase transactions and account security, especially with the
adoption of blockchains and the expansion of cryptocurrency. In turn, this can
drastically reduce or eliminate transaction fees due to the absence of an intermediary.
All kinds of digital assistants and applications continue to thank Cognitive Computing.
This greatly facilitates personal financial management as smart machines can plan and
execute short and long-term tasks from paying bills to filing taxes.
As natural-language processing develops and you learn more from an expanding data
pool of experience, you can also look for better customer care that uses advanced self-
help VR systems.
A new level of transparency arises from more comprehensive and accurate knowledge —
your-client reporting and more comprehensive attentive inspections, which now take up
most human working hours.
The end
As we can see, the benefits of AI in financial services are multiple and difficult to ignore.
According to Forbes, 65% of senior financial management expects positive changes from
the use of AI in financial services.
By the end of 2018, only a third of companies had taken steps to implement artificial
intelligence in their company processes. Many are still cautious, fearing that time and
expense will require such work — and implementing AI in financial services will be
challenging.
However, one can never be ashamed of technological advancement, and not facing it
now will cost more in the long run.
WRITTEN BY
Venkat Vajradhar
https://pvvajradhar.medium.com/the-growing-impact-of-ai-in-financial-services-chapter-2-3f4938f2b68d 4/5
2/10/2021 The Growing Impact of AI in Financial Services (chapter-2) | by venkat vajradhar | Feb, 2021 | Medium
Robotics Automation
https://pvvajradhar.medium.com/the-growing-impact-of-ai-in-financial-services-chapter-2-3f4938f2b68d 5/5