The primary responsibility of financial service providers is protecting its clients against any fraudulent activity. The adoption of machine learning capabilities along with big data statistics and predictive modeling embarks the future of advanced financial services innovation as it adequately supports the exponential increase in data volumes through a more robust and secure mechanism. Machine learning algorithms can detect fraudulent activities and their pattern by comparing each transaction against account history. The technology goes a long way in assisting businesses to assure better customer service, machine learning technology stands out as a differentiating technology for financial services institutions.
Machine learning technology has proved to be an asset in the quest for better risk management. Through real-time predictive analysis of vast amounts of data, machine learning technology can detect rogue investors working in unison across multiple accounts. Machine learning makes trading easier for both large and small investors by automating functions in computer-aided trading services that allow investors to have an order placed when a stock reaches a predetermined price, and to sell when that price drops below a certain limit.
The other advantages of automated support systems include providing an automated interface helping customers make better product selections, directing them to the correct solution and making the process less cumbersome by reducing the overall interaction period. The tremendous power of machine learning technology to access data, recognize patterns and interpret behavior enables the creation of a more efficient customer support system.
Machine learning effectively overcomes all the significant financial services challenges- Customer front office, regulation and compliance, and operational efficiency. Realizing the value of machine learning in recent times, companies like Google, Microsoft, are each integrating machine learning capabilities into their cloud-based developer interfaces to provide innovative solutions in the financial industry.