Automated underwriting, claims filing, billing, and data analysis — these are just a few applications of artificial intelligence in the financial industry. Let's take a look at how AI in finance can reduce human error, better detect and prevent fraud, and empower financial advisors to do their best work.
Applications of AI in the finance industry
AI applications in mortgage and insurance: Underwriting and filing claims
AI is already a gamechanger for the mortgage and insurance industries. Nearly half of mortgage industry executives believe AI's greatest impact is in underwriting. While this is still an up-and-coming technology, about half of all B2B AI solutions within this sector provide automated underwriting capabilities.
Automated solutions simplify and expedite the process for both applicants and underwriters. AI-powered software can process customer data and analyze patterns to more accurately assess risk. Case studies show this helps lenders cut losses by up to 25%.
AI is transforming the way property insurers process claims as well. Some software even lets brokers enter an address to scan a property via satellite. The program returns key details about the property's condition. Essentially, it's a fully automated property inspection — and all the broker needs to do is type in an address.
Artificial intelligence is especially useful for the claim filing process. Property owners can upload photos of the damage. AI then analyzes the photos against a database to pick out photos of similar incidents and compare them to previous insurance payouts. This can help insurance agents provide a more accurate payout estimate.
AI applications in accounting: Billing and data analysis
Artificial intelligence in accountancy is the ultimate time- and money-saving tool. Automating the billing process gives accountants more time to spend consulting and advising. It also takes the guesswork out of providing accurate quotes.
An artificially intelligent "assistant" can also streamline data entry and processing. Accountants can upload financial data, like photos of credit card receipts. AI can then extract and organize that data automatically. It can even create reports within seconds, eliminating hours of tedious work and reducing human error.
Automation also ensures better compliance with institutional financial policies. AI can process unlimited amounts of employee financial data and highlight irregularities more quickly and accurately than a human.
As we discussed in our article on the future of artificial intelligence, genuine human connections are still vital even in a world supplemented with AI tech. When it comes to financial advice, clients will almost always prefer the guidance of a human. AI ensures accountants have the time and space needed to provide expert advice.
AI applications in banking: Compliance and fraud detection and prevention
Because devices are getting smarter for everyone, government agencies update their regulations regularly to keep consumers safe. The consequences of non-compliance can have costly consequences — to the tune of millions of dollars. AI can automatically review new regulations and cross-check current processes against them to ensure compliance.
At the consumer level, AI is revolutionizing the way banks detect and prevent fraud. AI is more skilled at differentiating legitimate and fraudulent transactions at scale compared to humans. By identifying patterns, AI-powered fraud detection solutions can alert banks and consumers to potentially fraudulent transactions.
This also helps customers make more sense of fraudulent charges on their accounts, which reduces calls to customer service agents as well as customer service costs. It also improves the customer experience and increases loyalty.
All these benefits add up to more than $500 billion saved on fraud research and customer service across the banking sector.
AI applications in all finance industries: Automated webchat
Automated webchat for business is a must-have for every company in every industry. But it's particularly useful for financial industries.
Chatbots are a lead capture, customer support, and task management tool all in one. Automating routine tasks like answering frequently asked questions, opening a new account, and scheduling consultations will give financial advisors more time to spend doing what they do best: advising and building relationships with their clients.
Not only is webchat the preferred customer service medium across the board, but it also cuts customer care costs and generates more revenue.
Omnichannel conversational marketing solutions like ZyraTalk connect to your CRM, Google Analytics, and even Facebook Messenger accounts. With ZyraTalk, you can also send out automated text message campaigns in just a few clicks. Best of all, you can manage everything right from your ZyraTalk dashboard, or use our Zapier integration to connect with your preferred apps.
AI applications in finance: wrapping up
The applications of artificial intelligence in the finance industry are virtually endless. Maybe that's one reason why some accountants and bankers are skeptical to give it a chance. After all, back in 2015, NPR predicted that up to 98% of finance jobs are at risk of being automated.
That was 5 years ago, and that's yet to happen. Why? Because many of the leading developers in the AI sector are committed to a "human-centered" approach to AI — one that prioritizes coexistence, not replacement.
Despite the general anxieties around the rise of AI, we're certain that AI will enhance virtually every aspect of the way we do business. Then again, we are somewhat biased. After all, our omnichannel solution is powered by AI. But much like many other AI software providers, our approach is human-centered. We provide a hybrid solution that allows you to work alongside AI to communicate with your customers.
Ready to discover how automated webchat can reduce costs, increase revenue, and give you more time to spend connecting with your customers? Start a chat with us now to see our solution in action. Mention this post and we'll even throw in a free 30-day trial run.