The seven leading US commercial banks have prioritized strategic technological advancement by investing in AI applications to better serve their customers, improve performance, and increase revenue.

The pace of change we are witnessing with advancements in artificial intelligence (AI) adoption is incredible. We are only just beginning to utilise AI in mainstream industries like banking and financial services. AI is pivoting traditional banking from the very core—how we bank, invest and get insured. There is a lot of value that AI is providing to large enterprises as well as small and medium businesses (SMBs) in the financial sector. And the future seems bright.

AI for enterprises

The adoption of AI for each industry in this domain is very different but equally impactful. Insurance leaders use AI in claims processing to streamline process flows and fight fraud. Banks use chatbots to improve customer experience. In asset and wealth management, AI adoption has been sporadic, but robot-advisors are rapidly changing that. In trading, AI can help manage and augment rules and trading decisions, helping process the data and creating the algorithms managing trading rules.The seven leading US commercial banks have prioritised strategic technological advancement by investing in AI applications to better serve their customers, improve performance, and increase revenue.

AI for SMBs

For every SMB owner, technology can be complex to figure out and deliver substantial outcomes.SMBs across the globe share common financial needs such as better cash flow management, access to external financing and a more efficient payments system. But if invested in, AI and machine learning can transform top and bottom lines, especially for SMBs. First, intelligent customer relationship management (CRMs)—there are more cost-effective, more intelligent CRMs available because of advancements in AI. The second example is around integrated marketing—AI has also made it possible to create an integrated environment that manages interactions with current and prospective consumers, increase leads and conversions. Small enterprises can use even modest budgets effectively with AI solutions for marketing. Small businesses can entrust their marketing campaigns to AI-powered platforms that manage marketing operations across channels.Small businesses can plug AI-ready tools into literally every element of their business workflow that involves data. Other than that, AI also helps small business owners to negotiate the best supplier terms and optimise their cash flows. For small lenders and creditors, machine learning can be game-changing. Think low compliance and regulatory costs and robust credit scoring and other lending applications.

AI for global trade

With the increase in cross-border commerce, there is a wealth of data generated through credit notes, loans and cross-border transactions. AI and machine learning can enable global trade to a great extent, more businesses will be able to access trade finance, regulatory bodies can utilise algorithms to detect and prevent fraud and, overall, curb complexity in the world of commerce.

Road ahead

AI without a doubt has shown immense potential and thus promises to impact financial institutions by making up the foundation of a new banking ecosystem in the times to come. But to realise the full potential of AI-enabled cognitive machines, the emerging fintech companies which are most influenced by it would have to realise a seamless partnership with latest data management sources like big data experts and others.

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