How Artificial Intelligence can Help Your Brokerage in 3 Ways - Fintech Series (V)
With the arrival of the Era of Big Data, various emerging technologies have been widely applied in finance, news, e-commerce and other industries, leading to increased productivity and higher standards of living. Artificial intelligence (AI) has been instrumental in this process.
AI, the ability of machines or computers to perform human-like functions and tasks, is transforming all walks of life. It makes it possible for machines to learn from experience, and accomplish specific tasks by processing large amounts of data and recognizing patterns in them. So, for forex brokers, how does AI affect their business?
With respect to financial service sector, AI has enpowered numerous applications such as Expert Advisor (EA), quantitative trading, intelligent customer service (incl. Chatbots), identity recognition (incl. facial recognition), fraud detection, risk-based pricing, etc., and is playing an increasingly important role in sectors such as risk management, operations and maintenance (O&M), decision support and so on. In the future, AI is bound to significantly impact the financial service industry.
I. AI increases levels of business automation.
For example, with the help of machine learning algorithms, chatbots have now become capable of answering customer questions by analyzing the conversation, and learning from human responses, which is expected to improve customer service quality while reduce the cost of services. Another example is identity verification. Facial biometrics, powered by machine learning, enable online user identity verification, which is faster, simpler and more convenient.
II. AI helps the development of intelligent investment and new products.
For instance, EA trading is a new type of financial management, using cloud computing, big data, AI and other technologies to provide specialized and customized investment advisory services based on investors' financial status, risk preferences and targets, helping them make more rational investments. It was designed to partially or fully automate the work of a trader. Furthermore, with 24/7 support, EA can automatically place orders at any time in accordance with market trends. It produces errorless results, and stops emotional trading. EA helps agents at all levels to develop customers and enhance the profitability of investors. Several brokers have introduced account types that support EA trading in a bid to attract more new investors.
III. AI improves the efficiency of brand marketing.
It helps brokers identify customer pain points and discovers selling proposition to provide customers with customized offerings.
Thanks to AI, brokers can now automate sales process, and improve sales efficiency. On the other hand, brokers can also use data analysis to increase customer acquisition rates and leverage AI for better sales results.
Conclusion
Nowadays, AI technology has made huge strides and is ready for bringing more far-reaching changes to many industries, including the financial industry. Brokers who are better at using artificial intelligence will undoubtedly gain a greater competitive edge.
Previous Articles:
Is Fintech Reshaping Finance? - Fintech Series (I)
3 Points to Consider When Choosing A Right KYC Provider - Fintech Series (II)
The Fintech Ecosystem and Its Four Key Elements - Fintech Series (III)
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