The debate continues on whether or not the working class will become obsolete as society becomes more automated.
Robots are slowly replacing human workers, and this is very evident in the world of finance where robots are transforming the future.
Cloud computing, Robotic Process Automation (RPA), and analytics are now changing finance operations.
RPA
About two years ago, an article by the Wall Street Journal stated that robots are now being integrated into financial companies, doing work that’s was previously undertaken by highly trained teams.
Using machines to do complicated financial tasks isn’t something new but RPA is quickly gaining traction as corporations around the world are able to money by applying the technology.
RPA is “application agnostic”, which means that it provides a flexible structure for developing frameworks for each business.
Robots do not make mistakes. Unlike humans that can account for up to 40 percent of manual processing time and eventual errors, robots are compliant with whatever they’re programmed to do.
That being said, RPA helps in providing a positive audit for regulatory compliance. RPA operates in all existing security controls so there are neither restrictions nor compromises when it comes to safety and conformity.
AI chatbots
The finance industry is based on real-time data, which makes it an ideal industry for automation. In the future, chatbots will be key for banks to provide customer service to their users.
Chatbots will not only be useful for troubleshooting basic software errors but also as financial advisors.
Some Fintech companies are already using chatbots to aid their customers’ needs including Digit, Cleo, and Plum.
What the chatbots do is concentrate their efforts on micro-savings by putting small amounts into savings each day for customers.
However, despite the growing number of companies that use chatbots, there are a number of studies that say customers still want human interaction when dealing with their finances.
The Guardian revealed that while automation is being adopted, human touch will never be replaced entirely.
While most forms of trade are automated now, the knowledge, strategies, and idea on actual price movements will still rely on the human brain.
Nadex states that technical analysis is necessary when it comes to trading assets that involve price movements, and it is very important for beginners to take courses to expand their knowledge of these key areas.
Technical analysis is about looking for trends in the financial world that affects the prices of currencies and commodities.
Unless robots were able to understand how the ever-changing markets work, financial analysts will always be a key part of the industry.
Fraud detection
According to Genfour’s Robotic Workforce Research in 2016, there’s now an optimistic attitude toward automation.
Approximately 35 percent are considering integrating automation into their finance departments.
The reason for the acceptance is because financial companies are on the lookout for new tech that can help counter fraud.
One of the most efficient ways to keep charlatans at bay is to stay updated with technology, and there are a few areas in automation that can do this.
Automation software like MasterCard’s proprietary Decision Intelligence is a new fraud detection tool that relies heavily on artificial intelligence.
The current decision-scoring products being used by financial services are based on predefined rules that can sometimes be circumvented.
Decision Intelligence uses a groundbreaking approach that goes further than pre-constructed rules as it takes a broader view in assessing, scoring, and learning from each transaction.
Decision Intelligence is an evolving tech that learns based on user activity.
By constantly examining how a specific account is used over time, it will be able to detect abnormal transaction behaviours.
While there will be major changes within workforces in the future, analysts predict that people shouldn’t worry that their positions will be made completely redundant.
That’s because in many cases, manual testing is still the surest way to guarantee the security and functionality of a machine.
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