This article was written by Christopher Salone, Director, FoxPointe Solutions.
Artificial Intelligence (AI) is no longer a buzzword—it’s a business imperative. For financial institutions, AI offers real, measurable impact across a variety of functions, from streamlining internal operations to enhancing customer experience and safeguarding critical assets. Let’s explore the practical ways AI is being used today and how your institution can start realizing the benefits.
Streamlining Core Operations with AI
- Investment Research: Gone are the days of manually combing through endless reports. AI tools like FinChat.io automate data aggregation, visualization, and summary generation, significantly reducing the time required for investment research. This empowers financial analysts to focus on strategy rather than data gathering.
- Accounting Automation: Tools like Truewind.ai and Booke.ai are changing the accounting game. By automating repetitive accounting tasks, these platforms not only save time but also increase accuracy, freeing up teams to focus on higher-value activities.
- Financial Planning & Analysis (FP&A): AI-powered platforms like Datarails and Anaplan enhance forecasting, scenario planning, and budgeting processes. The result? More informed decision-making and a clearer path forward—even in uncertain economic climates.
Transforming Commercial Loan Review
AI is also redefining the way institutions manage commercial lending. According to Abrigo, AI improves everything from risk assessment to workflow automation.
- Automation: Platforms such as KPMG Ignite convert time-consuming, manual commercial loan processes into efficient, digitized workflows—significantly reducing data entry and document review time.
- Risk Assessment: AI-powered solutions from companies like Abrigo allow teams to review credit risk faster and with more precision. These tools help achieve more with fewer resources while improving the quality of decisions.
- Efficiency Gains: Institutions using AI for commercial lending report up to 70% reduction in processing time and 20% lower credit losses, while achieving up to 99% accuracy in income calculations.
Using AI to Protect Assets
Security and compliance are top-of-mind for any financial institution, and AI is proving to be a powerful ally in these areas.
- Fraud Detection and Cybersecurity: Predictive analytics models powered by AI can identify unusual patterns and flag potentially fraudulent transactions in real time. On top of that, AI strengthens cybersecurity by continuously monitoring for threats and vulnerabilities, helping protect sensitive customer and institutional data.
- Compliance and Regulation: Keeping up with constantly changing regulations is a challenge, but AI helps by automating compliance monitoring and reporting. AI systems also support data privacy and security efforts, ensuring institutions stay aligned with legal requirements while reducing the risk of penalties.
Real-World Efficiency Gains
AI isn’t just about back-end improvements. It’s enhancing both customer-facing and operational aspects of the financial business.
Customer-Facing Operations
- Chatbots provide instant, 24/7 customer support, improving service response time and consistency.
- Personalized financial products based on AI-driven behavioral analysis lead to greater customer satisfaction and loyalty.
Non-Customer-Facing Operations
- AI streamlines risk management by automating assessments and surfacing insights quickly.
- In the back office, AI tools optimize processes like invoicing and budgeting, increasing accuracy and allowing teams to focus on strategy and growth.
The Bottom Line
AI is not a one-size-fits-all solution—but when implemented thoughtfully, it can transform the way financial institutions operate. From reducing manual tasks to improving accuracy, boosting customer satisfaction, and strengthening security, the ROI on AI adoption is clear.
Financial institutions that embrace AI will not only optimize their operations and protect their assets—they’ll position themselves for long-term growth in an increasingly competitive and digital-first environment.
If you need further guidance or have any questions on this topic, we are here to help. Please do not hesitate to reach out to discuss your specific situation.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.