Over 25 years, the financial sector has experienced a huge number of technological innovations, among the most important should be the emergence of the Internet and the full range of related services.

The innovations of fintech look less significant, but they have radically changed the ideas of bankers about the way money is managed.

A lot of new financial services and tools have entered the life of bank customers - applications for contactless and mobile payments, various kinds of electronic wallets, crowdfunding services, and P2P lending, etc.

Artificial intelligence is increasingly key to most innovations in the near future 

Thanks to AI, innovations in the banking business ceased to be perceived only as an attribute of the activities of futuristic fintech companies. Banks have felt more confident and today many successfully use AI to improve efficiency, reduce costs and improve the quality of services for customers.

According to Business Insider Intelligence research cumulative potential savings from the implementation of AI applications are estimated at $0.5 trillion. 75% of respondents from banks with assets of more than $100 billion reported that they are already successfully implementing strategies to implement AI.

Among the most mature banking solutions with AI, experts are intelligent chatbots in front-office systems and means of the successful fight against fraud (fraud-monitoring). 

High-frequency trading or speed is everything

The capabilities of e-commerce instruments, including high-frequency trading on HFT exchanges, are highly dependent on the use of AI systems.

In practice, HFT involves super-fast (less than 5 milliseconds) placing orders and canceling them, ultra-short time for opening and closing the transaction, placing a huge number of orders, which can also be quickly canceled.

Thanks to the unreal speed of opening positions for humans, AI robots have formed their own niche in trading, in which they now compete with each other for every millisecond.

We should also note that in Forex trading the incorporation of various modern technologies is also visible. The creation of Forex robots, trading platforms are aimed to make the process easier. A forex robot in simple words is software that automates trading decisions and these robots are built around the MetaTrader platforms.

Some AI algorithms can learn to trade independently using different machine learning methods. Algorithms can also interpret news and take action much before people have a chance to react.

However, the complexity of infrastructure and the cost of building, the emergence of new taxes lead to the fact the profits from high-frequency trade are reduced.

Robotic Process Automation or AI?

Robotic Process Automation (RPA) represents a specific type of software designed for operations in which the robot cannot deviate from the rules.

With the means of a special platform, the robot is able to close and open applications, use the email system, create and move files and folders, emulate the clicking of buttons, copy files, and stuff.

Working like an ordinary office worker, the robot easily performs well-formalized work, for example, the robot can spend a minute on what the employee will perform within 15 minutes, and do the robot will not make mistakes. RPA allows automating up to 80% of bank work processes

Chatbots on customer service

Many banks continue to operate, relying on traditional call centers and customer service through the capabilities of their affiliate networks. However, some are investing in the development of highly intelligent front-office systems that provide round-the-clock interaction with customers.

Personalized AI-based chatbots are capable of processing human language and "understand" user requests, maintaining dialogue, responding to customers based on their business rules.

AI-based chat robots allow customers to check their balance and transfer funds, make online payments and find a profitable investment option. The chat robot can function in a fully automated way, the need for a call-center disappears, which saves money.

It is important that the chat robot responds to the identified client, it can be programmed so that its answers would be specific suggestions to that particular client. 

New image of the old brand

The advantages of using AI in the banking business are obvious: in addition to improving the quality and safety of services, AI provides effective anti-fraud capabilities, promotes the construction of anti-money laundering schemes. 

Chatbots allow you to build personalized and meaningful relationships with customers, and this, in turn, leads to an expansion of the customer base. 

In fact, AI represents more than just technological innovation to improve the profitability of the banking business. AI provides an opportunity for traditional banking brands not only to restructure the business process but also to update their image, remaining attractive in the future for all categories of their customers.

As time goes it is without a doubt that AI will play more role in every aspect of our lives. Finances are no exception and various corporations are already paying a lot of attention to artificial intelligence.