AI and Machine Learning: Strong Partners for Banking and Marketing in 2021

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Marketing and artificial intelligence present a powerful combination of technologies suitable for the banking industry. The versatility of the two shows many applications across different sectors, not only in the fintech sector.

Closer attention to AI and marketing continues to grow through the years. The COVID-19 pandemic has sped up its innovative developments.

Marketing has been around for ages but as a separate application. You know that artificial intelligence has been around for a while, too. Various smart robots can now help perform simple tasks, such as delivering medical instruments and drugs and helping shoppers choose items to buy. Some are used to deliver goods.

But combining the two for fintech is something worth speculating.

Types of artificial intelligence

For a time, smart machines are only the product of the wild and creative imagination of science fiction writers. However, we are already seeing that these creatures of imagination are rapidly evolving today.

The combination of machine learning systems and artificial intelligence is already a potent pairing. The tandem has the power to help humans in their business and personal processes; although in AI, according to its classification and the people working on the technology, the room for development is still quite huge.

According to them, AI has four types. In chronological order, these are reactive machines, limited memory, the theory of mind, self-awareness. You can sense the pattern of its growth through the different types.

The reactive machines can get and analyze information. The machines do not have a memory of the past, though. What they have are predictive qualities driven by logic.

With machines with limited memory, some pieces of memory are installed, mostly containing information regarding the past. For example, a self-driving car includes information on traffic rules for the limited memory, which the vehicle uses as a navigation tool, and given the capacity to process data in real-time, to aid it when maneuvering.

Under development is the theory of mind machines. They will be programmed to understand that people have their emotions, feelings and thoughts.

Ultimately, at least for the time being, the last type is the self-aware machines. They will have memories and will be able to have their own set of feelings similar to humans.

AI in the banking industry

Research is on-going on how to best use AI in the banking sector. AI is already into real-time fraud prevention and customer service. Its application in risk management is what developers are focusing their attention on. It is possible to predict insurance and investment risks or analyze a customer’s real intention for a loan. The system has the potential to evaluate the risks of attempts of terrorism financing and money laundering.

AI in the banking industry
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AI in the marketing sector

Developers are looking at the application of AI and machine learning in marketing. The combination can help in customer retention through personalizing special services, discounts and offers. They are working on having behavior-driven and data-driven insights into customers’ changing behaviors.

They are also working on real-time customer interactions through chatbots, optimizing voice search and buyer profiling.

All of the research and development attempts point to providing omnichannel, intelligent, and personalized services to customers using modern technology like machine learning and AI, which is dominated by human customer support groups.