Artificial Intelligence is already changing the face of banking on a global scale. Long before chatbots popped up as interesting business-use cases, long before mobile banking applications offered military-grade secure transactions, and much before focused analytics tools for banking made themselves known, AI apps for banks augmented by machine learning and deep learning began creating an impact in the world of banking. The question is natural, and when you think of it, this hardly comes as a surprise. Artificial intelligence is already playing a role in critical finance and banking functions such as loan approvals, asset management, portfolio design, and risk management. However, the true potential of AI apps for banks extends much beyond these often talked about areas of work.
Both employers and employees are asking for it, and in response, the industry is regularly dreaming up innovative ways to help clients improve their financial health. This week Envestnet Yodlee introduced enhancements to its Financial Wellness Solution that leverage "enriched transaction data, artificial intelligence and machine learning." Dubbed an "artificial intelligence-driven financial wellness assistant," the offering fully integrates the company's newest technology, the AI FinCheck application, in addition to its OK to Spend predictive cash flow application and API. The application's unveiling comes on the heels of a 2018 AITE research study that found 79 percent of 22- to 34-year-olds and 77 percent of 35- to 49-year-olds were somewhat to very interested in getting financial help from a virtual wellness coach. AI FinCheck works like this.
Fintech is the new gold rush for investors, growing from 10% in 2016, to a staggering $23.2 billion, with China and USA leading the market. This boost is powered by the growing capabilities of machine learning and artificial intelligence. It is an idea whose time has come, as the computational and storing capabilities available today can record and process the impressive quantities of big data necessary to fuel the algorithms. AI has already proven its capabilities in retail, healthcare, and trading, and therefore, looks like a safe bet. The only question now is just how much ruling power will the algorithms get?