At the cusp of rapid technological innovation, we tend to see the financial services and banking industry keeping up with the latest advancements. As reported by The Next Web on May 7, 2019, artificial intelligence (AI) adoption in the financial industry has helped increase the speed and accuracy of processes by reducing the margin of error by a significant amount.
Smart Loans and Fraud Prevention
While general AI, like Skynet in Terminator, is still at least a decade away, AI for specific purposes is bootstrapping global innovation. There are several use cases for artificial intelligence systems in global finance but a few very impactful examples stand out front the rest. Smart loan issuance and fraud protection are at the top of that list considering they’ve not just reduced inefficiencies but also improved the loan underwriting and collection process.
To determine if a person is eligible for a loan or not they have to undergo a credit rating test using a government approved service provider. However, this only works for people who use banks accounts and other continuously monitored wealth storage services.
Hundreds of millions of people across the globe are unbanked or have minimal interaction with their bank account. Smart loans are underwritten by utilizing alternative data sources such as social media, technology use habits, daily routines and interactions, and a plethora of other seemingly arbitrary information. Believe it or not, these systems have helped several people determine their credit worthiness – resulting in them finally being able to leverage the full utility of the financial system. Many blockchain entrepreneurs are also launching tools to aid the unbanked in sparse regions of the world.
Cybersecurity company McAfee Antivirus, founded by eccentric crypto advocate John McAfee,