Artificial Intelligence and Financial Services: Is It Finally the Time?

All of us know about artificial intelligence, or AI for short. AI is supposed to make things easier for humans by automating processes that are currently impossible to automate using mechanics (or scripts if we are talking about software). In other words, AI involves a certain degree of “learning” by a machine in order to update its methods for adaptation to any changes in the situation. Learning allows the AI to “think” like humans would and change its way of doing something over time, thus saving more time and producing more efficiently.

Now, for the prime-time question. Is it finally the time for AI to be used in a widespread way in the finance sector?

What does it essentially mean? 

Let us first see what will AI in financial services entail.

First of all, AI would mean direct penetration at all levels. It is not like only one sector within the financial services needs or can make use of AI.

Starting from the back office, through the middle office, and up to the front office, AI can be used at any point. Payment management, credit scoring, or web applications for customer interaction – all fields can use a good AI program.

AI will make things swifter and smarter.

How much AI do we have currently?

In the finance sector, we have multiple companies trying out different pilot programs (AI-based, of course) at different fronts. Some are working well, some are working worse than the previous methods, while some are absolute fails.

However, the poor performance is not due to any kind of inefficiency of the AI itself. It is due to our lack of information regarding the development of AI for financial services. We have not yet gained a significant advantage yet. We need more trials and errors and more companies stepping forward for experimenting further and taking the science of AI in finance to new heights.

It will take a while before the science is perfected and used widely. For example, recently Suisse Bank PLC used certain new technologies to make some processes faster for its clients. It took the technologies for a couple of months to be perfected and be ready for worldwide use.

AI’s main role: the big data

Data is the soul of financial institutions. They practically work on data and live off it. Currently, we handle big data using human resources and big data software based on scripts and algorithms that can only be changed if a discrepancy or error is found in the current models. That too has to be done manually and separately for each discrepancy.

AI will ensure that big data is processed the way a company requires or sees fit without human intervention. A Minimal human intervention will be required, of course, to authorize certain changes and monitor the overall process.

Computing resources are getting better and more complicated. More and more businesses are investing in customized computing solutions. It is high time we invested in AI while considering it a part of core computing resources for a financial institution.

It will not only help the companies, additionally, but the clients of those companies will also find swifter, safer, and more accurate results.

Why is it Important to Choose a World Class Bank for Asset Management?

Asset management is a great corporate need. However, we can’t stress enough about choosing the right partner for your personal investment needs or other investment needs. Many make the incorrect choice of going with what’s readily available or is coming cheaper. And more often than not, that’s a local or geographically limited financial institution.

In this piece we’ll try to outline why you need to choose a world class bank for your asset management requirements.

What options are available to me?

Before we begin, let’s see your options.

You’ll get a huge list of private equity firms. Not each will be suitable, but most will appear to be suitable.

However, you need to go with a financial institution that handles credit in a way that ensures your business prospects won’t be adversely affected.

What services should you be looking for?

Before you decide on a bank to outsource your asset management requirements, have a look at the few factors that affect the business a lot here.

First of all, what kinds of investments will the bank made? Not all banks can make all kinds of investments, or aren’t willing to, at least. Only a few banks will give you the whole roster of growth capital, venture capital, leveraged buyout, and other advanced investment strategies.

Does it matter? Yes, it does.

Suppose you need more of your asset management or there’s some tricky situation in your capital needs (which happens a lot if you’re dealing with offshore clients, especially). In that case, some mainstream strategies might not work efficiently, or at all.

You need options and that brings us to our next topic.

Why does it matter if I pick a world class bank or not?

Picking a world class bank is absolutely important. It’s not just about the money and how much you will be saving. It’s also about experience in field. A credible and well-reputed bank will have no difficulty in arranging suitable options for you.

In other words, if you need an array of options to gain capital and invest in the right places, you will need a reputable bank to manage your assets. That pretty much goes without saying.

For example, Suisse Bank Plc. is a lucrative option for many top corporates and brands that want a risk-free source to gain more capital.

Wrapping up

In the end, know that your asset management needs can be met by a number of banks. You’re a client seeking a financial facilitator to deploy investment strategies for you. Here, many will promise guaranteed results. Don’t be sold right away.

Choose a bank that has a global presence, first of all. Second, we would recommend checking their technological foundation. Mostly, if a service provider has close affinity to the most advanced banking technologies and product tracking methods, then it means they’re in the business knowing what they’re doing.

One last thing we would recommend is checking the industry reports about the banks. Suisse Bank Plc., for example, makes its external asset managers industry report of the year 2017 very clearly discoverable. If you choose X bank, then go through the reports like that for that bank. You’ll find whether it’s the right choice or not in no time.

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