Leveraging Machine Learning for Banking Innovation: Opportunities and Challenges
DOI:
https://doi.org/10.54097/wn7f0j13Keywords:
Banking, innovation; machine learning; artificial intelligenceAbstract
This essay gives an introduction to machine learning (ML) and how the application of it in the banking industry. Banking businesses are now able to filter through large volumes of data and unearth priceless insights that were previously hidden in the depths of transaction records, client profiles, and market trends thanks to the use of machine learning, a subfield of artificial intelligence. By streamlining procedures, increasing decision-making across the board, and personalizing services, it promises to transform the banking sector. The ability of an institution to properly use modern technology is often the difference between success and stagnation in this transformation, which is characterized by a tangle of opportunities and challenges. The benefits and difficulties are outlined in the essay. Real-world cases on the financial institutions that apply machine learning are listed to further prove the phenomenon. Future outlook is predicted based on current state at the end of the essay. Finally, conclusion on the application, future forecast and both advantages and disadvantages are given.
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