AI Transforming the Financial Industry: Overview of Fraud Detection and Credit Scoring

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Riding the wave of digitalization, the financial industry is rapidly adopting AI. As an innovative technology that is revolutionizing traditional business methods, it is bringing about major changes, especially in the fields of fraud detection and credit scoring. Here, we will explain how financial institutions are using AI to improve business efficiency and customer service, with concrete examples. Of particular note are the improved detection rate of fraudulent transactions through lebanon whatsapp number data AI technology and the new credit evaluation system that utilizes machine learning. These innovations are enabling financial institutions to provide safer and more efficient services.

1-1. Rapid evolution and necessity of AI use in the financial industry
In the financial industry, the use of AI is rapidly progressing along with the wave of digitalization. Behind this is a major change in customer behavior. According to a survey by the Japanese Bankers Association, the usage rate of smartphone banking rose from 11.0% in 2015 to 35.5% in 2021, while counter usage fell from 89.3% to 75.6%.

To meet changing customer needs, financial institutions are forced to efficiently process huge amounts of data and provide high-quality services. By utilizing AI, it is now possible to quickly and accurately classify and analyze data, predict markets, and more.

In addition, in recent years, there has been a shift from indirect finance to direct finance, and more accurate market forecasts are required. AI-based predictive models analyze huge amounts of data to reduce investment risks and support customer asset management.

By using AI in this way, financial institutions have achieved efficiency and sophistication in various operations, such as 24-hour chatbot services, detection of fraudulent transactions, and prevention of money laundering.