Financial services are turning to AI to help analyse data, identify market trends, and prioritise tasks. It can also identify fraud, refine customer experience, and boost cybersecurity.
Financial institutions generate high volumes of information and AI plays a pivotal role in handling this data efficiently. For example, Accenture data shows AI can increase banks’ revenue by 34%. The report also highlighted the industry’s optimism towards the potential of AI for their organisation.
In this blog, we highlight three important ways AI optimisation can help scale AI and revolutionise the financial sector.
Catalysing innovation at speed and scale
Efficiently scaling AI remains an issue for many companies, with 75% of firms using AI failing to have an ‘enterprise-wide’ strategy.
The financial industry is highly regulated, therefore organisations often have a trade-off between model performance and explainability. This is where an AI optimisation platform like TurinTech’s evoML can help, by optimising the model and providing model source code to enable full transparency and explainability – without compromising accuracy or speed.
evoML– can help financial firms build custom models with multiple criteria, at scale. This creates better and faster algorithms for organisations’ unique business problems, optimising business processes efficiently.
Elevate ESG compliance with greener AI
A Global Data survey reported how the pandemic has increased the focus on ESG issues. The financial sector has an important role to play in helping the economy adapt to a more sustainable future. WWF and Greenpeace report that UK Financial Institutions were responsible for 1.8 times the UK’s domestically produced emissions.
AI optimisation can help usher the industry towards its sustainability goals, with machine learning improving and consuming less energy. Ultimately, green AI integrates technology and sustainability into a unified ecosystem.
With uncertainty still expected, AI optimisation can support and transform businesses that are open to change. Ultimately, every organisation is responsible for contributing positively to the climate crisis, and optimising processes is a step in the right direction.
Accelerate speed and improve performance
AI can accelerate business processes and improve performance. Take the example of a hedge fund where the statistical models are underperforming, and they can’t take advantage of more complicated patterns in ever-increasing data types and volumes.
Leveraging an AI optimisation platform, the fund can accelerate the end-to-end trading strategy development process by creating several optimal models for different prediction needs, such as the price or up/down momentum on large amounts of data. The fund can then automatically identify the most effective signals among thousands of data features, saving hours of manual labour. This can make trading strategy development 25x faster and lead to a 90% increase in annual return rate.
The bottom line
Ultimately, AI can help the financial sector improve its performance and revenue in various ways. Innovation and agility are crucial in this evolving landscape. Technology that empowers this change, while complimenting ESG considerations, will be hugely important moving forward. Vital innovation, at speed and at scale is necessary, and can be facilitated through the implementation of AI.