As artificial intelligence transforms an increasing number of domains, financial institutions and companies are moving fast to keep pace. This can affect the way you bank, invest, receive loans and prevent financial crimes.
At the heart of the AI revolution are machine learning algorithms, software that self-improves as it is fed more and more data, a trend that the financial industry can benefit from immensely. Here are some of the key trends that making inroads in the space.
As e-commerce has risen in popularity, so has online fraud. Yet fighting online fraud is very challenging. Declining transactions too aggressively to prevent fraud can be a self-defeating goal. According to a 2015 study by research firm Javelin Strategy, false declines, legitimate transactions that are wrongly rejected, account for $118 bln in losses for retailers. A third of false decline cases result in lost customers, and in US alone they incur damage that is worth 13 times the value of actual fraud.