By Stefanos Mistrellides*
In 2024 significant changes and transformations are expected to happen from the impact of advanced automation tools and the influence of AI, permeating several aspects of the financial services industry. Anticipated changes vary from streamlining back-office operations to reshaping the collaboration between human and AI factors for all-sized companies.
Advanced automation tools in finance are highly sophisticated technologies and software applications that use state-of-the-art computing technology to automate and streamline various processes within the financial services industry. AI refers to the development of computer systems to perform tasks that replicate human knowledge and skills, such as visual and speech perception, critical thinking and decision-making.
AI and automation tools evolve to catch up fraudsters’ new tricks
Fraudsters will continue to develop new ways to steal identities, commit fraud, and abuse businesses’ sustainable ecosystem and additional security efforts, by exploiting the progression of AI.
AI and automation tools play a critical role in the constant battle against fraudsters. Therefore, businesses are relying on advanced technologies to detect, prevent and respond to different forms of fraud.
Taking into consideration that fraudsters are increasingly attempting to bypass Know Your Customer (KYC) procedures, require financial services organisations to adopt a proactive and adaptive approach to security matters to stay ahead of the problem. It’s important to realise that the fight against fraud is an ongoing process that requires a combination of advanced technology, skilled people and a drive for continuous improvement.
Human-AI Collaboration
One of the major innovations that exist is the inception of AI. AI tools in finance enhance efficiency, help to prevent mistakes and improve the overall operational performance of financial firms. However, human-AI collaboration is a requirement.
Automation and AI technology can efficiently handle repetitive tasks, monitor patterns and detect irregularities. The human workforce offers critical thinking, adaptability and understanding of the evolving regulatory and ethical environment, to ensure a comprehensive and compliant approach. The optimal approach is to integrate these factors to create a robust and agile defence against constantly evolving threats.
Client Onboarding is a defining stage for financial institutions. It involves a thorough process of collecting and verifying information about an individual to establish a business relationship. This procedure is also based on sets of criteria designed to measure the risk associated with a particular individual and to ensure compliance. It overall requires a highly sensitive approach that combines both technology and human skills.
Back-Office Operations Streamlining
The use of automation systems in financial services has increased in recent years. By 2023, around 82% of Admirals’ client onboarding applications were processed automatically. This is a game-changer, contributing to the technological transformation of a business which subsequently improves the overall operational performance. It is expected that back-office operations will become even faster in 2024.
In conclusion, there is a need to harness the power of automation and AI as their widespread impact in the financial services industry is expected to improve efficiency, enhance the user interface, and drive a new era of innovation and competitiveness for businesses in 2024.
*Onboarding Product Owner – Admirals
