3 November 2017

Artificial intelligence in the banking sector

How effective is this method?

Uplift modeling is a predictive modeling technique that directly models the incremental impact of a treatment on the end user. This method makes it possible for customer segmentation and increases efficiency through targeting. This method is effective in the area of loans as it assesses and analyses each request and the borrowers and, provide the right approach to working with each client.

In what other bank sectors are artificial intelligence used for?

Artificial intelligence is widely introduced into products and services, both for staff and clients, in order to optimize banking processes. Banks widely use new technologies to analyze client data. This helps to identify the ultimate needs of clients quickly and to offer a suitable service or product in the shortest time. Advanced technology, through algorithms, is being introduced to assist in revealing a client’s objectives when requesting for bank services.

Artificial intelligence also monitors transactions and provide client classification and selection. This program is widely used in retail banking and private banking as well as, investment banking when dealing with HNWI/UHNWI clients. Singapore and Hong Kong are one of the leaders in implementing artificial intelligence in their financial sector.

With the right calculations, based on specific conditions, artificial intelligence is being integrated in a variety of industries such as companies specializing in consumer loans, insurance brokers and large investment firms. The aim is to reduce time for data collection, filtering, calculation and problem solving. This will in turn speed up business processes. Robo-advisors are also being developed and introduced into the banking sector. This technology provides for investment consulting and has the ability to determine three functions, namely allocation of assets, choice of securities and time horizon. Based on the above conditions, robo-advisors automatically offer investment decisions.

Eldiyar Muratov - CEO of Singapore Castle Family Office