October 14, 2024

5 Practical Use Cases for AI in Financial Services

Ståle Zerener
5 min

AI presents plenty of opportunities in financial services, from credit risk modeling to fraud detection. But one of the most straightforward, low-risk areas for AI is automating manual data entry — something that consumes time, introduces errors, and adds unnecessary cost across large institutions.

By automating these tasks, you can cut inefficiencies, reduce human error, and free up your team for higher-value work. Below are five practical use cases where AI can make an immediate impact for banks and other financial institutions.

  1. Loan application processing
    Automating the collection and verification of documents like income statements and tax returns can speed up the loan approval process and reduce manual errors. AI can pull all relevant data immediately, making the process faster and more accurate.

    Relevant for: Commercial Banks, Credit Unions, Mortgage Lenders, Fintech Lenders.
  2. Customer Onboarding: Proof of Address and Incorporation
    Documents like proof of address or proof of incorporation can be automatically read by an AI model to speed up the customer onboarding process while staying compliant with AML regulations.

    Relevant for: Retail Banks, Investment Banks, Commercial Banks, Neobanks, Fintech Platforms.
  3. Processing Bills of Lading in Trade Finance
    Processing bills of lading can be labor-intensive in trade finance. AI can extract data, verify shipping details, and ensure trade compliance, speeding up the entire process and reducing errors.

    Relevant for: Investment Banks, Commercial Banks, Trade Finance Institutions, International Banks
  4. Automating Trade Confirmation Notes
    Trade confirmation notes often require manual reconciliation. AI can automate data extraction and matching, improving accuracy and reducing settlement times.

    Relevant for: Investment Banks, Brokerages, Asset Management Firms
  5. Climate Risk Reporting
    With climate risk increasingly under regulatory scrutiny, AI can aggregate and analyze environmental data for reporting, reducing the workload on teams and ensuring compliance with evolving standards.

    Relevant for: Banks, Insurance Companies, Asset Management Firms, Pension Funds, Investment Firms

By integrating AI in these areas, you can enhance efficiency, reduce manual intervention, and improve overall accuracy across your operations.