Bahaa Abdul Hussein is a Fintech expert and shares his experiences with his audience through his blogs. This time he discusses how AI and Data can transform Financial Services Industry.
If you globally study the list of top 100 research and development companies, you will not see even a single financial services company on that list. This implies that the financial services industry has failed to break the barriers in recent decades. Meanwhile, sectors like education and healthcare have seen manifold growth.
For transformation and innovation, organizations need to look at the broad potential of data. Approaches like Analytical approaches that are up to now not so much used by organizations can
give great results, such as data exploration i.e. why something happened, predictive modeling i.e. what will happen in the future, and prescriptive analytics i.e. how can we as humans make something happen?
If we enable this with a strong architecture of modern data it will become so crucial as open banking will increase the options for consumers. Presently, we have multiple architectures for efficiently cleaning, storing, and analyzing data i.e. the data lake, data warehouse, and the data Lakehouse.
We know that both data lake and data warehouse have their limitations. However, data Lakehouse is the best option we have among other architectures. Data lakehouse is now emerging as an important data structure for financial organizations for prolonging crucial insights.
Artificial intelligence and Data making an impact
The first step for any financial organization that wants to get great results from using data and AI is getting the right data architecture in right place like lakehouse. These are some key areas where data and AI can transform financial organizations for their betterment observed Bahaa Abdul Hussein.
Personalization
Data and AI play an important role in helping financial firms to depart from product-centricity to customer-centricity and in creating a more personalized customer experience.
Fraud Detection
Detection of fraud is no easy task at all especially when the volume of data increases manifold and online fraudsters come up with different tactics to avoid detection. If we store the data in one place it will provide an easy framework to detect fraudsters at its roots. Organizations can make a fraud detection data pipeline that will visualize the data in real-time. This allows more flexibility and will detect possible fraud cases.
Risk management
A modern risk management practice is the need of the hour for managing the market and responding to economic volatility. AI and data allow the delivery of scalable and real-time insights to facilitate FSIs to resolve and address threats efficiently.
In conclusion, A simple, open, and collective approach to AI and data will accelerate innovation and take the financial services industry forward in countless ways.
Thank you for your interest in Bahaa Abdul Hussein blogs. For more information, please visit www.bahaaabdulhussein.com.
