Financial firms have always been early adopters of new technology, including relational databases and the mainframe computer. Now, artificial intelligence (AI) is helping the sector by applying methods derived from human intelligence to improve results and engage with customers in new, technical, ways.

More and more financial services are using AI to process information on customers; save time and money; monitor behaviour patterns; assist money making decisions; asses credit quality; automate client interaction; analyse the market; and asses data quality as well as fraud detection.

Digital transformation

“AI will have an impact as big as electricity and will transform every single industry”, said Terry Cordeiro, Head of Product Management at Lloyds Banking Group at Tug Life.

“It has completely transformed how the finance industry works, with the vision at Lloyds being to use smart machines for extending human capabilities while using data to respond.”

Lloyds, for example, has recently invested £3billion on its digital transformation initiative, which includes using AI to “simplify and progress modernisation of its IT and data infrastructure, as well as other technology-enabled productivity improvements across the business”.

‘Better decision making’

Ahead of the transformation plan, the bank revealed that it’s going to slash 1,000 jobs.

“Manual repetitive tasks are no good anymore. Automating processes means better opportunities to reduce costs for better decision making, and intelligent products mean that our customers are able to do much more,” Corderio added.

Colderio also noted that one of the big drivers of mental health in the UK is financial problems, which is where machine learning capabilities come in, helping people face their financial difficulties.

Written by Leah Alger