The Rise of AI and Algorithms in the Financial Services Sector

Artificial intelligence and the use of algorithms continues to invade all sectors with the ultimate goal of automating actions based on the study of the information they collect. Financial services are also making use of them to offer optimal solutions to customers. which every day demand more sophisticated technology for managing their financial resources.

Whether in social networks or journalistic media dedicated to technology, it is true that artificial intelligence (AI) and algorithms have become part of the vocabulary of professionals dedicated to the creation and use of intelligent digital platforms, so it is likely that they can be confused at some point in its study and implementation.

Let's demystify both terms to find the point when they come together harmoniously and materialize sophisticated advances in the life of the programmer applied to the financial sector.

Artificial Intelligence: beyond customer data analysis

Like the cloud, artificial intelligence stands out for its high capacity to evolve and respond to new challenges and technological advances, all thanks to its level of performance to execute analytics, no matter how complex they may be.

Today, the concept has broken away from human-superior machines and science fiction movies to become something much more tangible, easily found in smart mobile devices, mobile apps, and robots designed to perform repetitive tasks once carried out by the labor force.

In the case of the financial sector, Artificial Intelligence has managed to promote the creation of software platforms such as applications that offer banks greater operational competitiveness, as well as offering customers the best digital services and improving their experience as end customers. Thanks to these platforms it is possible to make financial predictions and monitor the financial system in real time. Another advantage is that customers can enjoy better management of their portfolio and make decisions based on machine learning and estimates according to their credit history.

One of the top representations of the implementation of Artificial Intelligence is the natural language processing (NLP), which allows machines to understand the textual and verbal forms of human language through computing which, applied to the financial sector, makes it possible to analyze market sentiment based on the monetary results of a company or of a specific investment.

Naturally, when talking about Artificial Intelligence, the issue of data security acquires a fundamental role, not only because it deals with monetary values, but also because of the privacy of the client and of the organization itself, as well as the new regulations and standards in the implementation of the technology in the financial field such as facial recognition, the use of biometric data, among others; this is where algorithms come in as the basis of these automated programs.

Algorithms for concrete solutions

Without algorithms, Artificial Intelligence is unable to exist. Beyond the type of algorithms and the characteristics that distinguish them, these elements are the essence of Artificial Intelligence and many other emerging technologies, since it is defined as an instruction that solves a specific problem, as well as having the ability to calculate or carry out practically any given task.

Before writing the code, the algorithm takes the main role, since it helps define the action that you want the technology or platform to perform. Now can you see its role in Artificial Intelligence? That's right, it is all about the automated tasks.

Being the Input, the Process and the Output the parts of the computer algorithm, these values presume to be precise, ordered, specific, and concrete, which helps to be built according to their type (search, ordering, greedy, dynamic and probabilistic).

AI and Algorithms for better financial decisions

Now that you know that both technologies come together in a virtuous circle to seek maximum precision and assertiveness in any field, perhaps you can imagine the power of their combination working in the financial field.

Today the software used in the financial world needs to go beyond automated actions. They require platforms that offer sector predictions, that discriminate clients and suppliers based on their historical information, as well as achieve exceptional operational efficiency regardless of the company's external conditions, actions that only Artificial Intelligence and Algorithms can perform together.

Bank asset management must not be taken lightly, it demands to eliminate risks, predict future economic scenarios, analyze and qualify customers to improve their growth opportunities and customer experience, as well as having the ability to grant loans based on the analysis of the information collected by the software platforms, without neglecting the legal compliance required by regulatory organisms.

In this scenario where digital and fintech banks are expanding and using machine learning to evaluate potential customers, prevent fraud and offer better experiences on an individual basis, it is essential that both technologies be their permanent base.

Are you now convinced to implement them in your business? Leave it in our hands, we can help you. We are certain that digital transformation should be the priority path for the financial sector, and we are experts in creating solutions to create new opportunities for our clients through the development of software aimed at the financial sector, especially with the increase in digital consumers that seek to manage their resources through digital platforms.

We know that it is a complex and demanding industry, and that it requires all the experience and the best technology available to speed up decision-making, so we develop digital environments to make accurate forecasts and better manage the portfolio. Enter here and learn more about our work, let us be your digital ally to grow your business exponentially without looking back.

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