How Artificial Intelligence Will Disrupt the Financial Sector

Artificial intelligence thrives with data. The more data you have got, the better your algorithms will be. However, just having a lot associated with data is not sufficient anymore. You also require high-quality data, or in the terms of Peter Norvig, you need better data:





“We don't have better algorithms, we just have a lot more data. More information beats clever formula, but better data beats more information. " - Philip Norvig - Movie director of Research, Search engines





Nowadays, most companies collect vast troves of data, yet especially the monetary sector is well-suited for also gathering high-quality data. Simply because of regulations and because a great deal of data in the financial sector will be structured data. There is also an abundance of data in public markets or other external sources that can be linked for additional insights. As it appears, banks and insurance coverage companies can benefit a lot from AI, if implemented properly, of course.



Financial Institutions Have to Innovate



Besides, more and more customers require financial institutions in order to innovate. They have become fatigued with overbearing fees to their handle capital and provide products such as credit. The below graph by State associated with AI clearly shows the difference within costs between typically managed wealth plus automated management of wealth. As the...


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Artificial intelligence thrives with data. The more data you have, the better your algorithms will be. However , just having a lot of data is not sufficient anymore. You also need high-quality data, or in the words of Peter Norvig, you need better data:

“We don’t possess better algorithms, we just have a lot more data. More information beats clever algorithm, but better data beats more information. ” – Peter Norvig – Director of Research, Google

Nowadays, most organisations collect vast troves of data, but especially the financial sector is well-suited for also collecting high-quality data. Simply because of regulations and because a lot of data in the financial sector is structured data. There is also an abundance of data within public markets or even other external sources that can become linked for additional insights. As it seems, banks and insurance companies can benefit a lot from AI, if implemented correctly, of course.

Financial Institutions Have to Innovate

Besides, more and more consumers require financial institutions to innovate. They have become fatigued with overbearing fees to their manage capital and provide products such as credit. The below graph by State of AI clearly shows the difference in costs between traditionally managed wealth and automated management of wealth. As a…

Read More on Dataflow

Author

Scottie Todd

Scottie Todd

Digital Marketing Lead

“Level 4 marketing wizard on a quest for
data insights one blog post at a time.”

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