If there’s one technology paying dividends for the financial sector, it’s artificial intelligence. AI has given the world of banking and finance new ways to meet the customer demands of smarter, safer and more convenient ways to access, spend, save and invest money.
AI in Finance
The market is growing too. The market value of AI in finance was estimated to be $9.45 billion in 2021 and is expected to grow 16.5 percent by 2030.
And as the market expands, it’s important to know some of the key players. Let’s take a look at the areas where artificial intelligence in finance is gaining momentum and highlight the companies that are leading the way.
Companies Using AI in Finance
- Kensho Technologies
- Enova
- Scienaptic AI
- Socure
AI Companies in Financial Credit Decisions
Credit is king. One report found that 27 percent of all payments made in 2020 were done with credit cards. But easier payment isn’t the only reason credit is important to consumers.
Having good credit makes it easier to access favorable financing options, land jobs and rent apartments. So many of life’s necessities hinge on credit history, which makes the approval process for loans and cards important.
Artificial intelligence solutions help banks and credit lenders make smarter underwriting decisions by using various factors that more accurately assess traditionally underserved borrowers in the credit decision making process.
These companies help the financial industry rethink the underwriting process.
Location: New York, New York
Gynger uses AI to power its platform for financing tech purchases, offering solutions for both buyers and vendors. The company says creating an account is quick and easy for buyers who can get approved to start accessing flexible payment terms for hardware and software purchases by the next day.
Location: Chicago, Illinois
Enova uses AI and machine learning in its lending platform to provide advanced financial analytics and credit assessment. The company aims to serve non-prime consumers and small businesses and help solve real-life problems, like emergency costs and bank loans for small businesses, without putting either the lender or recipient in an unmanageable situation.
Location: New York, New York
Ocrolus offers document processing software that combines machine learning with human verification. The software allows business, organizations and individuals to increase speed and accuracy when analyzing financial documents. Ocrolus’ software analyzes bank statements, pay stubs, tax documents, mortgage forms, invoices and more to determine loan eligibility, with areas of focus including mortgage lending, business lending, consumer lending, credit scoring and KYC.
Location: New York, New York
Scienaptic AI provides several financial-based services, including a credit underwriting platform that gives banks and credit institutions more transparency while cutting losses. Its underwriting platform uses non-tradeline data, adaptive AI models and records that are refreshed every three months to create predictive intelligence for credit decisions.
Location: Burbank, California
Zest AI is an AI-powered underwriting platform that helps companies assess borrowers with little to no credit information or history. The platform uses thousands of data points and provides transparency that helps lenders better assess populations traditionally considered “at risk.” The company reported that auto lenders using machine-learning underwriting cut losses by 23 percent annually, more accurately predicted risk and reduced losses by more than 25 percent.
Location: New York, New York
Socure created ID+ Platform, an identity verification system that uses machine learning and AI to analyze an applicant’s online, offline and social data, which helps clients meet strict KYC conditions. The system runs predictive data science on information such as email addresses, phone numbers, IP addresses and proxies to investigate whether an applicant’s information is being used legitimately. Socure is used by institutions like Capital One, Chime and Wells Fargo, according to its website.
AI Companies Managing Financial Risk
Time is money in the finance world, but risk can be deadly if not given the proper attention. Accurate forecasts are crucial to the speed and protection of many businesses.
Financial markets are turning to machine learning to create more exacting, nimble models. These predictions help financial experts utilize existing data to pinpoint trends, identify risks, conserve manpower and ensure better information for future planning.
The following companies are just a few examples of how artificial intelligence in finance is helping banking institutions improve predictions and manage risk.
Location: Boston, Massachusetts
Gradient AI specializes in AI-powered underwriting and claims management solutions for the insurance industry. For example, the company’s products for commercial auto claims are able to predict how likely a bodily injury claim is to cross a certain cost threshold and how likely it is to lead to costly litigation.
Location: Ames, Iowa
Workiva offers a cloud platform designed to simplify workflows for managing and reporting on data across finance, risk and ESG teams. It’s equipped with generative AI to enhance productivity by aiding users in drafting documents, revising content and conducting research. The company has more than a dozen offices around the globe serving customers in industries like banking, insurance and higher education.
Location: Cambridge, Massachusetts
Kensho, an S&P Global company, created machine learning training and data analytics software that can assess thousands of datasets and documents. Its data training software uses a combination of machine learning, cloud computing and natural language processing, and it can provide easily understandable answers to complex financial questions, as well as extract insights from tables and documents quickly. Traders with access to Kensho’s AI-powered database in the days following Brexit used the information to quickly predict an extended drop in the British pound, Forbes reported.
Location: Menlo Park, California
Ayasdi creates cloud-based machine intelligence solutions for fintech businesses and organizations to understand and manage risk, anticipate the needs of customers and even aid in anti-money laundering processes. Its Sensa AML and fraud detection software runs continuous integration and deployment and analyzes its own as well as third-party data to identify and weed out false positives and detect new fraud activity.
Companies Using AI in Quantitative Trading
Quantitative trading is the process of using large data sets to identify patterns that can be used to make strategic trades. Artificial intelligence is especially useful in this type of trading. AI-powered computers can analyze large, complex data sets faster and more efficiently than humans. The resulting algorithmic trading processes automate trades and save valuable time.
The following companies are just a few examples of how AI-infused technology is helping financial institutions make better trades.
Location: New York, New York
Trumid is a fintech and fixed income trading platform. The company applies advanced analytics and AI technologies to develop products and data-driven tools that can optimize the experience of credit trading. Trumid also uses its proprietary Fair Value Model Price, FVMP, to deliver real-time pricing intelligence on over 20,000 USD-denominated corporate bonds. This AI-powered prediction engine is designed to quickly analyze and adapt to changing market conditions and help deliver data-driven trading decisions.
Location: Chicago, Illinois
Powered by their AI and machine learning algorithms, Tegus is an investment research platform. The company helps clients research investment opportunities more efficiently by providing AI-generated summaries of expert interviews to help them make informed investment decisions.
Location: New York, New York
Canoe ensures that alternate investments data, like documents on venture capital, art and antiques, hedge funds and commodities, can be collected and extracted efficiently. The company’s platform uses natural language processing, machine learning and meta-data analysis to verify and categorize a customer’s alternate investment documentation.
Location: New York, New York
Entera is an AI-powered investment platform for real estate investors. The platform lets investors buy, sell and operate single-family homes through its SaaS and expert services. Investors can access homes from on and off-market sources. Additionally, Entera can discover market trends, match properties with an investor’s home and complete transactions.
Companies Using AI in Personalized Banking
Traditional banking doesn’t always cut it with today’s consumers. A 2021 survey from J.P. Morgan Chase found that 89 percent of respondents use mobile apps for banking. Additionally, 41 percent said they wanted more personalized banking experiences and information.
AI assistants, such as chatbots, use AI to generate personalized financial advice and natural language processing to provide instant, self-help customer service.
Here are a few examples of companies using AI to learn from customers and create a better banking experience.
Location: San Francisco, California
SoFi makes online banking services available to consumers and small businesses. Its offerings include checking and savings accounts, small business loans, student loan refinancing and credit score insights. The company applies AI in multiple ways. For example, SoFi members looking for help can take advantage of 24/7 support from the company’s intelligent virtual assistant.
Location: San Francisco, California
Chime provides banking services that can be accessed online or in-app. Users can receive their paychecks up to two days early and build their credit without monthly fees for overdrafts of $200 or less. It has a network of over 600,000 ATMs from which users can withdraw money without fees. The company partners with FairPlay to embed fairness into its algorithmic decisions.
Location: San Francisco, California
Affirm offers a variety of fintech solutions that include savings accounts, virtual credit cards, installment loans and interest-free payments. It aims to equip businesses and consumers with the tools necessary to purchase goods and services. The company’s platform supports commerce via mobile or digital.
Companies Using AI in Cybersecurity and Fraud Detection for Banking
Every day, huge quantities of digital transactions take place as users move money, pay bills, deposit checks and trade stocks online. The need to ramp up cybersecurity and fraud detection efforts is now a necessity for any bank or financial institution, and AI plays a key role in improving the security of online finance.
Here are a few examples of companies providing AI-based cybersecurity solutions for major financial institutions.
Order.co helps businesses to manage corporate spending, place orders and track them through its software. Its clients can use the platform to manage costs and payments on a single unified bill for their operating expenses. The company also offers recommendations for spend efficiency and how to trim their budgets.
Ascent provides the financial sector with AI-powered solutions that automate the compliance processes for regulations their clients need. It analyzes regulatory data, customizes compliance workflows, constantly monitors for rules changes and sends quick alerts through the proper channels. The company aims for financial firms to have increased accuracy and efficiency.
Companies Using AI in Blockchain Banking
AI and blockchain are both used across nearly all industries — but they work especially well together. AI’s ability to rapidly and comprehensively read and correlate data combined with blockchain’s digital recording capabilities allows for more transparency and enhanced security in finance. AI models executed on a blockchain can be used to execute payments or stock trades, resolve disputes or organize large datasets.
Here are a few examples of companies using AI and blockchain to raise capital, manage crypto and more.
Location: Chicago, Illinois
Wealthblock.AI is a SaaS platform that streamlines the process of finding investors. It helps businesses raise capital and handle automated marketing and messaging and uses blockchain to check investor referral and suitability. Additionally, Wealthblock’s AI automates content and keeps investors continuously engaged throughout the process.
Companies Using AI in Accounting
Location: Los Angeles, California
FloQast makes a cloud-based platform equipped with AI tools designed to support accounting and finance teams. Its solutions enable efficient close management, automated reconciliation workflows, unified compliance management and collaborative accounting operations. More than 2,800 companies use FloQast’s technology to improve productivity and accuracy.
