Artificial intelligence and big data are already making a huge impact on the finance and banking industry. Tesla, Facebook, Amazon, Apple, and Google are some of the companies where artificial intelligence has been used to promote the product and make the product as the best product from the user point of view. To detect the fraud transaction and especially for the larger companies where there are possibilities for increased fraud cases the technology backing with artificial intelligence supports a lot. The machine learning and Artificial intelligence can be used to analyze the patterns associated with fraud and make the required adjustment to the algorithm or rule-based logic with the help of the human transactions.
Banks and financial institutes work on huge data and different business models to minimize the risk factor in the day to day transactions which is changing the financial sector. Banks are always under pressure to handle the huge money with perfection and technology backing helps the financial sector to provide hi-class service to their clients. For the blockchain technology in the banking sector, big data hold a prominent place. Let us discuss in detail How Technology is Changing The Finance sector?
Artificial intelligence and finance industry
Artificial intelligence is used for the pricing of the product and to predict the investment. Some instances of how artificial intelligence used in the finance sector are the demand analysis, price fluctuation of one product over the other product, the geographical location of consumers who make the financial investment, trading pattern in the share market which shape the hourly prices, the volatility of prices traded on an open exchange, and the relative costs of goods and services in different markets. In the loan department of a bank different AI based credit risk models are developed to prevent the default on a loan. The risk models help to avoid the past mistakes.
Big data and Finance industry
Many payment companies like PayPal and upstart allow the customers to easily make payments. Big data help the companies to define a data strategy and arrive at the business goals. The role-based access in the big data helps to track the data, prevent the data from wrong hands and allow the companies to track the data. The real-time case study from the financial industry is the America multinational financial services company and Transunion where big data play a prominent role in the fraud detection and risk management.
Blockchain and the finance industry
To store the transactional data within various ledgers blockchain technology is used in the finance sector. In Japan, nearly 50 banks are partnered to use the open source blockchain technology and big data technology. The processing time has been reduced due to the usage of the blockchain technology. The storage, speed and the analysis with the help of these technologies are bringing in so many changes in the finance industry.