Finance teams are essential to a company’s overall success now more than ever. Their responsibilities are no longer limited to payroll, regulatory compliance, reporting, and overall public interest.
The scope of expertise required for proficient finance teams to bring value to the company has broadened substantially, and this has had them involved in the overall decision-making in regards to many processes.
As such, it’s becoming more and more critical for financial divisions to rely on new technology and improve existing ones. Gone are the days that if some IT solution weren’t working, they wouldn’t look for a way to fix it.
Research shows that 89% of finance professionals have yet to use artificial intelligence in their work. To frame it in another way, only one in every ten people has used AI to their advantage, while 56% of everyone surveyed said that they are not developing AI at all at this stage. It just goes on to reveal the tremendous potential and room to grow.
Vastly Enhances Customer Experience
Right off the bat, using financial software that takes advantage of AI will enable the company to enhance the experience of its customers significantly.
Traditional banking is pretty much an antonym to convenience. Millennials and the youngest of generations simply can’t be satisfied, and that’s quite understandable. They are used to a much more dynamic environment, whereas traditional finance is just not.
The adoption of financial software based on AI can change that in a heartbeat. There are plenty of ways in which this will improve the overall customer’s experience, including but not limited to:
- No more long waiting queues.
When it comes to traditional banking, one of the biggest problems and something that everyone is immediately thinking of is long queues. Virtual assistants and chatbots, however, can easily solve this problem almost entirely. It would also allow patrons to do everything they need from the comfort of their own home.
- Entirely personalized customer service
AI-based assistants based on Machine Learning (ML) can also help devise individualized and tailored financial plans, loans, and offers to every single customer. It would be based on their credit score, past behavior, interest, and so forth.
- Task assistance
There are plenty of things that customers need assistance with, and sometimes waiting for an employee could be just tedious. Financial software, on the other hand, can be much more appropriate. An AI-optimized solution can help customers carry out essential day-to-day functions such as transaction processing, account onboarding, setting reminders, and whatnot.
- Provide smart insights
It is especially important for corporate clients. An AI-based banking software can easily analyze various cash flow patterns and other end-user behaviors and generate reports that would showcase spending patterns and so forth.
Significantly Improves Decision-Making
It’s worth noting that legacy banking institutions, in their most traditional form, failed to leverage information properly. It’s unlikely to be their fault. The technology was just not ripe for usage.
Collecting and properly analyzing information through AI-analytics financial software, for instance, could quickly assist these institutions in converting their analytical data into an understandable and actionable format.
This format, on the other hand, will allow them to identify strengths, see weaknesses, loopholes, and structure their entire working process around it. Let’s dive a bit deeper, though.
- Vastly Improved Marketing
An AI can help finance teams develop and implement tailored and bespoke marketing strategies. The latter would no longer rely on guessing because big data analytics made it possible to target every single user group precisely.
- Enhanced Business Operations
AI analytics can easily assist finance teams in improving their overall operational efficiency. That would save the entire company money from human time used more efficiently, as well as from eliminating errors by automating processes, reducing fraud, enhance customer experience, improve customer service, and so forth. All things considered, this could, in fact, improve the overall ROI.
Risk Management Based on Data
When tailoring a proper strategy, a finance team needs to leverage risks more than any other team in a corporate structure. And when it comes to it, data-driven risk management should be the standard.
AI-based financial software can:
- Help make well-informed decisions and create accurate predictive forecasts
When it comes to digital banking, there are plenty of external factors that need to be accounted for and considered. Currency fluctuations, political unrest, natural disasters, and others alike substantially affect the industry.
During times of this kind, business decisions should be taken particularly carefully. AI-driven analytics can provide reasonable insights and a clear picture of what is to come so those executive decisions can be made timely and in an appropriate fashion.
- Helping with client assessment
AI-based solutions can easily evaluate the probability of a client failing to pay back their loan. It can predict future behavior by analyzing past information based on a myriad of things, including smartphone data.
AI-Based Financial Software Can Prevent Fraud
Fraud is particularly common when it comes to the banking sector, and this is where top-notch technology such as AI, big data, blockchain, and analytics can easily come in quite handy.
To name a few ways in which software of this kind can be helpful to finance teams:
- It can improve auditing practices
- It can mitigate cybercrime
- It could create a well-compliant internal infrastructure
Forraying in the Age of Technology and Information
In conclusion, a finance team should be well aware of the benefits that this type of financial software delivers. It should be able to properly assess the weaknesses in its current strategies and leverage the technology accordingly.
It’s also worth noting that every technology can be tweaked in a way that fits the need of the particular company or, in this case, strategy. Therefore, artificial intelligence can be put to work only in specific fields where the team feels a lack.
In any case, in the age of information and digital transformation, finance teams can no longer afford to lag behind. AI, machine learning, big data, blockchain, and other innovations are forking the industry, leaving tradition in the ballpark.