Predictions for Data + AI in Financial Services
Artificial Intelligence (AI) is revolutionizing the financial services industry, driving unprecedented changes in efficiency, customer experience, and risk management. In 2024, it is anticipated that AI will further enhance predictive analytics, by analyzing huge unstructured data. This will enable more accurate market forecasts and personalized financial advice.
AI-driven automation will streamline operations, reduce costs and improve compliance. As cybersecurity threats evolve, AI will play a crucial role in detecting and mitigating risks. This year promises significant advancements in AI applications, transforming how financial institutions operate and deliver value to their clients.
Let’s see what 2024 has in store for the BFSI industry:
Utilizing The Power of Gen AI for Financial Services
It will be a defining factor for any financial institution’s success if they can break down their unstructured data with the help of Gen AI. Here’s how financial services can benefit from mining unstructured data:
- Personalized Customer Service: Gen AI will empower financial organizations to deliver services with an individual approach based on a customer database and their behavior during transactions. It will be easier to recommend products to clients, advise them on where to invest or offer them tips on how to manage their finances.
- Operational Efficiency: AI will help enhance organizational productivity through automating tasks including data entry, report generation, and customer due diligence. This decreases the expenses and increases the efficiency of operations.
- Fraud Detection and Risk Management: Gen AI can process large volumes of data to look for pattern deviation and fraud cases. It will improve risk management by availing better and real-time data.
- New Business Models: Gen AI will drive new demands and opportunities for banking services and change how services are delivered and consumed across the industry.
Harnessing Specialized AI and Data Sharing for Business Success
Let’s have a look at how AI and Data sharing will boost organizational success:
Utilizing Unstructured Data
It will be a defining factor for the financial institution’s success if they can break down their unstructured data with the help of Gen AI. Here’s how financial services can benefit from mining unstructured data:
- Natural Language Processing (NLP) models will use Generative AI to analyze the sentiment of news articles, customer reviews, and social media posts. This analysis will provide insights into public opinion and market sentiment, which are crucial for making informed financial decisions.
- By analyzing unstructured data sources like text documents and news articles, AI models will help in assessing risks associated with investments, financial transactions, or even operational risks within financial institutions.
- AI will use data from various sources to identify emerging trends, competitive intelligence, and regulatory changes. This helps financial institutions stay ahead in the market and adapt their strategies accordingly.
Harnessing the Power of Blockchain
AI and crypto had already started making significant waves since 2023. Digital enthusiasts have started creating blockchain-powered products and services, especially in the banking industry. It is predicted that in 2024, blockchain will create huge impacts in the capital markets, if it is combined with AI.
There are many challenges faced by financial services. Some of these challenges are:
These challenges will cease to exist when there is a successful collaboration between AI and Blockchain. This combination will drastically enhance all financial operations.
Financial Services Need to Build Data Security for Growth in AI
Ensuring robust data security for generative AI will be crucial for its growth. Financial services leaders are concerned about data privacy and security. Generative AI can work both ways in cybersecurity: it can enhance security by identifying risks and providing immediate automated responses, but it can also introduce new vulnerabilities.
To harness the benefits of generative AI while mitigating risks, organizations will increasingly emphasize security and governance capabilities. Leading banking companies will depend on strong data insights that will facilitate sharing, securing, and governing data to develop tailored generative AI solutions. They will also prioritize data solutions that will operate effortlessly across several clouds and platforms with user-intuitive and consumer-friendly security features.
Conclusion
The future of financial services in 2024 will be shaped by AI-driven innovations. With AI+Data, financial institutions will deliver superior customer experiences, drive operational efficiency, and navigate complex regulatory environments with greater agility. Embracing these trends will be key to staying competitive and meeting evolving customer expectations in the years ahead.
At Kasmo, we specialize in eliminating data silos and streamlining workflows for our clients. As a proud Snowflake Select Partner, we utilize Snowflake Data Cloud to offer a unified platform, enhance risk management, and ensure the protection and storage of customer data.
