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How AI Is Changing the Financial Industry

How AI Is Changing the Financial Industry
Artificial Intelligence (AI) is transforming industries across the board, and financial companies and institutions are moving fast to keep pace. AI is changing the way we apply for loans, file insurance claims, invest our money, and interact with our banks. Here are some of the most prominent AI trends that are making inroads in the finance industry. Fraud Detection and Management As e-commerce is rising in popularity, so is online fraud. To prevent frauds, many e-commerce platforms and card issuers have been forced to decline transactions too aggressively. According to a study by Javelin Strategy, retailers lost almost $118 billion in 2015 due to false declines. Moreover, more than a third of cardholders abandoned their card because it was falsely declined. To detect fraud and prevent loss of revenue, many financial institutions have turned to AI. Machine learning algorithms can reduce false declines and improve the accuracy of real-time approvals because they can identify fraudulent activities that would go unnoticed by humans. Recently, Mastercard has launched its own AI-based fraud prevention system. Mastercard’s technology gleans patterns from the historical spending habits of shoppers. It uses this data to set a behavior baseline that allows it to score and compare new transactions. It is not limited to predetermined rules. Traditional fraud detection systems, on the other hand, use a one-size-fits-all approach when evaluating transactions. Since Mastercard processes countless interactions each year, they have plenty of quality data they can use to hone and train its AI fraud prevention system. Thanks to machine learning, AI fraud detection systems learn on their own and improve themselves over time. AI systems can also automate AML (Anti-Money Laundering) and KYC (Know Your Customer) compliance. Virtual Assistants and Chatbots Thanks to machine learning and natural language processing (NLP), chatbots and virtual assistants can deliver human-like interactions. There are more and more virtual assistants that are designed for various niches within the finance industry. Banks and other institutions use virtual assistants and chatbots to offer personalized conversational experiences to their clients. Unlike human agents, virtual assistants can juggle multiple accounts at once, and they are always available. They allow customers to get assistance outside of office hours. Banks, brokerage firms, and insurance companies can use chatbots to reduce the workload of their call centers. By offerings comprehensive self-help solutions, clients can successfully apply for loans, get personalized financial tips, or file claims much faster. For instance, the AI Insurance Claims Assistant can help and re-engage with customers throughout the complete claims process. It can gather the required information for processing and update the customers on the status of their claims. They also have digital workers that can automate the onboarding journey, help customers figure out their coverage needs, update their information, or make policy adjustments. Banking bots, on the other hand, can help customers optimize their financial plan by intelligently tracking their income, spending habits, and essential recurring expenses. They can also help customers open an account and remind them to pay their bills. Risk Assessments As mentioned, one of the strongest features of AI is its ability to learn from past data. Since records and bookkeeping are an essential part of financial services, AI and finance go hand in hand. Credit cards are a perfect example. To determine if someone is eligible for a credit card, card issuers use credit score. But, business-wise, it doesn’t always make sense to group customers into “haves” and “have-nots.” Instead, financial institutions can use each customer’s data, such as the number of credit cards they have, the number of loans currently active, and information on loan repayment habits, to customize the interest rate on the card they have issued...
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How Artificial Intelligence Can Assist in Recruiting Talent

How Artificial Intelligence Can Assist in Recruiting Talent
  Finding the right candidate to fill an open job position has always been a challenging task, and the fact that the monetary cost of a bad hire can reach up to 30% of the employer’s first-year earnings only adds to the pressure. During the process, you need to ensure that you attract, hire and retain the right talent, so that your company may reap the benefits of having a skilled, engaged and productive workforce, instead of suffering because of bad hiring choices. Fortunately, with all the advancements it brings, AI has also taken the world of recruitment by storm. Many HR experts now leverage AI-powered tools to help them locate and attract potential candidates, build meaningful relationships with high-profile applicants, and make smarter hire choices. Here are the four most important ways AI can assist in recruiting talent. 1. Attract Great Candidates One of the most significant challenges HR departments face is attracting skilled staff, as 87% of HR experts claim that there is a lack of qualified applicants for the positions they are trying to fill. However, the quality of your job applicants largely depends on the initial candidates you’ve attracted to your job posting. To get more applications that match your job posting, and fewer of those who are over- or under- qualified, your job description needs to represent what you’re looking for in candidates accurately. AI-powered tools, such as Textio, can help you come out with a perfect job description that is tailored to address the needs of your potential job candidates. This AI tool analyzes over 10 million job ads each month. Due to its extensive database, and NLP capabilities, Textio gives you suggestions on how to adjust your job description depending on your industry, and offers you alternatives that better match your target audience. If you sound better to your target candidates, you’ll attract more high-profile candidates from the talent pool. 2. Improve the Quality of Recruitment Even though we hate to admit it, the recruitment process is always biased. A study has found that people with no facial flaws are more likely to get a job. When certain imperfections exist, the attention of the job interviewers will mostly be focused on these facial differences, instead of on what the candidates are saying. AI can make the recruitment process unbiased, as it can help you determine objective criteria, and act on these criteria alone when narrowing down choices and making a selection. Besides, during an interview, AI can spot some other vital characteristics that the human eye can’t easily capture. For example, in an attempt to find perfect matches for their open positions, Unilever uses neuro-science based games, as well as facial expression analysis to assess their candidates’ personalities and honesty. After the interview, the algorithm comes up with a review of each candidate, making it much easier for the HR department to make a final selection. Learn the Art and Science of Resume and CV Writing – Job Search Skills, LinkedIn and Interview Skills all Included! 3. Provide Your Candidates With Better Experience The HR department can now successfully use conversational chatbots to engage with candidates during the recruitment phase, and significantly improve their experience with a potential employer. An AI chatbot can be used to answer candidates’ most common questions, to inform them about the status of their application, and update them on all the recent developments. Many companies don’t follow up with their top candidates after the interview, which severely damages their reputation and their chances of making the best hires. AI chatbots can be there to keep the communication lines with the top candidates open, showing them respect and...
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How AI Can Improve Employee Engagement

How AI Can Improve Employee Engagement
How Artificial Intelligence Can Help Increase Employee Engagement Employee engagement is crucial to the success of your business; without engaged employees,  your business will have a tough time expanding. According to Gallup’s State of the Global Workplace report, 85% of employees are actively disengaged in their workplaces. Disengaged employees are less effective at their work, and can contribute to a drop in company revenue over time. Here are some ways that Artificial Intelligence (AI) can help keep your workforce engaged and working at their full potential. Robotic Process Automation Robotic Process Automation, or RPA, is a great tool to remove repetitive tasks from your employees every-day routine. RPA harnesses the power of Artificial Intelligence by using digital software robots, or “bots”, to automate existing business processes. The Artificial Intelligence aspect of the bots enables them to work with “unstructured data” without hitting snags or complications. RPA can be applied to almost every industry and can help you become more efficient and save money in the long run. RPA has the power to increase employee engagement in a number of ways, the first being an increase in their mood. An IBM study on “The Financial Impact of a Positive Employee Experience” shows that “organizations that score in the top 25 percent on employee experience report nearly three times the return on assets compared to organization in the bottom quartile.” Making sure that your employees are happy and engaged can prove helpful for your bottom line. Removing repetitive tasks can also lead to an increase in creativity for your employees as they are being tasked with more challenging and thought-provoking work. Additionally, removing the monotonous work with RPA can provide more opportunities for upward mobility for workers, as more jobs now requiring a higher level of skill and insight. Picture Courtesy: Zibtek Professional Development & Predictive Behavior Artificial Intelligence shows great promise for being able to help in the personal development of current employees. Using AI, companies are able to create personalized training programs for employees, which can align the material with different employees’ learning patterns and behaviors. Using this, employers can then target the specific needs of employees, instead of having to create blanket training that can often be repetitive to many. If a training program is largely computer-based, then AI can actually serve as the instructor for the course, creating more time for other training. AI technology has proven useful in its predictive behavior aspect and can be used in businesses to gain detailed information on why employees leave the company, enabling them to take preventive measures in the future. Picture Courtesy: Docebo Artificial Intelligence helps human resources develop more personalized feedback on an employee’s work, and more personal responses to any issues they might be having. This helps employees feel more valued at a company and can increase their engagement. Employee training programs are crucial for keeping an employee engaged in their work. If an employee is confused about any part of their task, and feels unable to ask for assistance, they will be less engaged in their job. In addition, you can use AI to help train employees on newer aspects of the company to keep furthering their development and open up new opportunities for them. AI can help identify factors that push employees to leave a company, allowing employers to address issues before an employee reaches the point of exiting. Team Collaboration Teamwork and collaboration are part of every business, and Artificial Intelligence can help take some of the stress and planning out of this assignment. AI can improve team collaboration by using employee data it has gathered to recommend which employees would work best together...
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