The growing usage of machine learning in the finance industry is now quite evident. With each passing day, its popularity has been increasing to manifolds. Many banks and financial institutions have started using machine learning to streamline and enhance the productivity, security and solution process. It is becoming a leading technology which every financial institution wants to follow. It’s quite different from other technologies, enabling machines to learn on their own without depending upon human help. The best part is that it keeps on improving with new opportunities and trends in order to enhance the productivity of the finance industry.
In the last couple of years, Machine Learning in financial services has become a new buzzword. It has literally transformed the sector in every aspect. Let’s quickly take a look at 7 uses of machine learning in the financial industry.
- A new take on fraud prevention
Machine learning has literally brought new measures and smart ways to prevent frauds in the financial industry. Unlike old methods, machine learning can identify and prevent fraudulent activities for multiple accounts round the clock with effective and highly sophisticated methods. With the help of spotting patterns, and predictive analytics, the algorithm of machine learning can quickly block a fraudulent activity or transaction with high-end accuracy.
- Smart predictions on investment
Modern fund managers are making use of machine learning to predict latest fund trends. Thus, many popular financial institutions, including JPMorgan, Morgan Stanley etc. are now making use of automated investment advisor with the help of machine learning.
- Improved risk management
Machine learning tools offer improved risk management, including overall financial position of a customer, his capability to pay dues, and market trends. It also helps to prevent financial frauds and crimes to minimize the risk of financial institutions.
- Improved and quick customer service
Customer service has always been the most critical part of financial institutions. The traditional methods are not competent enough to cater to thousands of customers on a daily basis. Thus, machine learning helps banks to cater to multiple customers in a one go with chatbots, virtual assistants etc.
- Optimum level of data security
We all know that cyber threats and attacks are very dangerous for banks and financial institutions. Thus, machine learning offers advanced technology driven security tools and software to secure the financial data of banks, institutions and clients.
- Prevents money-laundering
Machine learning is capable to offer solution to age-old problem money-laundering due to which banks suffered heavy losses in the past. Machine learning software can easily detect rates, gives instant regulatory compliance, and recognize the unique patterns to money laundering.
- Helps to make effective marketing plans
Machine learning also helps in creating effective marketing plans and strategies as per the current dynamics and trends. It effectively analyses web analytics, customer behaviour, mobile app usage, response of various banking campaigns that prove beneficial for finance experts in creating result-proven marketing plans.
Thus, machine learning in financial services is creating revolutionary transformation.
