In modern financial technologies, robotization should be highlighted as one of the developing directions.
For example, Sberbank announced its intention to release about 3,000 lawyers and transfer the function for creating claims to robots soon. Bank of America recently implemented machine learning to analyze currency strategies. Leading Japanese banks plan to automate about 30,000 workplaces because, according to the outstanding banking sector specialist, the traditional business model has lost effectiveness in current conditions and does not provide adequate profit generation opportunities.
Japanese business publication Nikkei, Mizuho Financial Group, writes that this year, they plan to replace more than 8,000 employees with computers, and by 2026 — more than 19,000 employees.
Chatbots are expecting to replace traditional call centers and customer service staff gradually. Many banks have already replaced their customer service employees with chatbots. If earlier a bank client applied for help to a bank employee, now many customer issues are resolved in an automated online mode. Communication usually takes the form of messages in online chat. For «understanding» human speech, the bot matches the written with the examples of phrases, determines the request’s subject, and performs the necessary action according to the program algorithm. Due to the coherence of activities, the client feels he interacts with a real person and not with a bot
As financial technologies improve, the role of robotization and artificial intelligence in their sphere will grow. For quite a long time, robotics has been developing separately from artificial intelligence (AI). Still, now there are no prospects for the development of one direction without the result of another. These two concepts are inextricably linking with each other. A robot is a machine that can perceive the surrounding reality, interpret it and act accordingly, i.e., analyze.
The following are examples of the implementation of artificial intelligence in FinTech:
• Payment notifications: mobile banking applications analyze the information of the client’s account to promptly remind about payment of bills, credit payments, or planned replenishment of the deposit.
• Overdraft avoidance warnings: with the advent of AI algorithms, it has become possible to track credit card balances and promptly warn about low balance. Thus, the client avoids overdraft.
• Fraud prevention: if a customer logs into Internet banking from a new device, performs large money transactions, or makes many payments in a short period, he will receive a warning about possible fraud. AI algorithms allow banks to identify suspicious financial transactions and alert the client by phone, e-mail, text message, or PUSH notification. In unusual cases, the client needs to call the bank to confirm the transaction personally and answer additional security questions.
• Pricing: Uber plans to use AI to generate invoices. The rate will vary from the time, distance, demand, and the client’s ability to pay. Thus, it considers the average standard of living of the customers in the area, points of departure and arrival, and the likelihood of a business trip.
• Recommendations: online platforms analyze customer preferences to offer exciting products. Amazon and Netflix algorithms show results, remarkable for their accuracy. They provide the right products or content, but they do it just when they are ready to purchase.
• Virtual financial advisors help manage your financial plans, savings, and expenses efficiently.
• The analysis of a client’s credit rating and potential risks using artificial intelligence is becoming faster and more efficient, allowing to make the most objective assessment of credit risks.
Artificial intelligence and robotization are invaluable for the financial industry. These innovations simplify and streamline many processes, efficiently processing data sets. In the future, AI and robotization can effectively transform the financial sector and become an integral part of it.