2 minute read
Many factors make modern finance different from how the financial industry worked a few decades ago.
Electronic payments made up a mere 14% of consumer transactions in 1990. Today, the situation has changed completely, with just one-quarter of consumer payments being made with cash. Transformations have been applied to all financial industry sectors, making modern finance a highly complex system. A vivid example is an ATM. In the 1960s, it was a cash dispensing machine, and today, it’s a multi-purpose solution used for deposits, bills loans, replacing credit cards, etc.
The increased complexity of finance means using traditional algorithms isn’t enough any longer. Thus, financial experts expect to be mass AI adopters in the next few years. AI technology has also become more complex, and traditional AI is expensive and complex for most financial institutions. Things get better with the emerging no-code AI applications in finance.
Let’s dive into several of the most practical examples of using no-code AI apps in finance.
Fraud Detection
Payment card transaction fraud costs around $30 billion a year, with more than one-third of such losses attributable to the US. New types of fraud are constantly emerging, especially during the pandemic. Manual fraud detection is pointless and time-consuming. Thus, opting for machine learning that can scan massive amounts of data in real-time and categorize transaction types is always a win-win solution for businesses worldwide.
Automated Loan Segmentation and Approval
No-code AI presents an effortless solution for segmenting and approving loans automatically. It lets financial experts effortlessly build a loan default prediction model similar to how the fraud prediction model functions. No-code AI auto-approves applicants with a low probability of default.
Predicting Financial Distress or Corporate Bankruptcy
No-code AI platforms can predict financial distress, which helps investors and portfolio managers mitigate risk. By providing early warnings through emails or other communication channels, no-code AI apps notify investors when an asset in their portfolio is at risk of dramatically dropping in value.
No-code AI is the future of finance, as it allows users to solve complex problems effortlessly across multiple use cases. The processes that once cost many months and millions of dollars can now be done in minutes without the need to write code or have data science experience while simply using no-code AI tools.