WELCOME
AI IN FINANCE
AND BANKING
PRESENTED
BY GROUP 7
Saroj bishwakarma
Sandesh shahi
Kailash Karki
pujan lohani
Nimasha gurung
Yashodha khadka
CONTENT
1. Introduction to AI
2. AI in finance and banking
3. AI shapes in financial sectors such as high-
frequency trading, risk management, fraud
detection, and customer service.
4. Ethical concerns and regulatory implications
introduced by AI in financial services.
INTRODUCTION OF AI
Artificial intelligent AI, it a rapid advancing field of technology that
has potential to revolutionize the way we interact with the word. It is
defined as the ability of computer or machine to think and learn
from its environment, and to make decision based on the data it has
obtained.
AI IN FINANCE AND BANKING
Artificial intelligence (AI) in finance helps drive insights for data
analytics, performance measurement, predictions and forecasting,
real-time calculations, customer servicing, intelligent data
retrieval, and more.
High frequency trading
HIGH-FREQUENCY
TRADING
AI plays a crucial role in high-frequency trading (HFT) and algorithmic
trading strategies by swiftly processing vast amounts of data to detect
patterns and market trends, allowing for rapid order execution and the
identification of arbitrage opportunities.
In algorithmic trading, AI assists in
developing predictive models based on
historical and real-time data, with machine
learning.enhancing accuracy over time.
Furthermore, AI aids in risk management
by providing insights into market volatility and trade impacts, enabling
better decision-making and strategy optimization
Risk management
AI in risk management in finance is a game changer. It allows for
better detection of anomalies, predictive analytics for
market movements, and more accurate risk assessment models.
Additionally, AI can handle vast amounts of data in real time,
providing quicker responses to potential risks. Overall, it enhances
decision making processes and helps mitigate financial risks more
effectively.
Fraud detection
AI revolutionizes fraud detection in finance by analyzing
transaction data for anomalies, employing machine learning to
detect patterns, and monitoring behavior in real-time. It adapts
continuously, learns from new data, and detects complex fraud
schemes through network analysis. By identifying suspicious
activities, AI prevents financial losses and protects both customers
and institutions. Its adaptive nature ensures ongoing effectiveness
against evolving fraud techniques, making it an indispensable tool
in modern risk management for banks and financial institutions.
Customer service
AI is employed through various channels such as chatbots, virtual
assistants, and automated systems. These AI powered tools handle
customer inquiries, provide account information, offer
personalized recommendations, and assist with transactions. By
analyzing customer data and interactions, AI enhances service
efficiency, reduces wait times, and delivers tailored responses,
improving overall customer satisfaction.
Additionally, AI continuously learns
from interactions to refine its responses
and better meet customer needs
over time.
Exploring Ethical Concerns and Regulatory
Implications of AI in Financial Services
AI revolutionizes financial services, but ethical concerns and
regulatory implications must be addressed .This presentation
explores key issues .
Ethical concerns
1. Bias and Discrimination: AI algorithms may perpetuate biases.
present in historical data, leading to unfair treatment of certain
demographics.
2. Lack of Transparency: Complex AI models can be opaque, making it
difficult to understand how decisions are made.
3. Privacy Risks: AI systems process vast amounts of personal data,
raising concerns about privacy infringement and data security
breaches.
4. Job displacemen: The integration of AI in financial services may lead
to the displacement of human workers, raising concerns about
unemployment and the future of work.
Regulatory Implications
1. Compliance Challenges: Regulators face difficulties in keeping pace
with rapid AI advancements, leading to potential gaps inregulatory
oversight.
2. Accountability Issues: Determining responsibility for AI decisions,
especially in cases of errors or misconduct, presents legal and
ethical challenges.
3. Regulatory Frameworks: Establishing clear guidelines and
standards for AI in financial services is essential to ensure ethical
use and regulatory compliance.
conclusion
At last we can say that AI in finance and banking has become an
important tool for improving efficiency, risk management,
customer experience and decision-making. By implementing AI
companies can cut costs increase productivity and make data
driven decisions to stay ahead in the market. Furthermore, from
the above points. We can clearly understand that AI plays a vital
role in our life, and we can also say that AI has become part of our
life. If we use wisely, then it will be beneficial for us.
Thank
you!!
