Machine learning in finance: how can it make your job easier?

Machine learning is a branch of artificial intelligence that has revolutionized different fields. Machine learning in finance has allowed applied technology to be taken to the next level, within the information processing and security that the sector requires.

According to a McKinsey & Company report, 56% of companies globally have made use of at least one artificial intelligence function or resource, including machine learning.

Read on to find out more about this technology and how it has made it easier for the financial world to work.

What is machine learning?

Machine learning is a form of artificial intelligence, which allows a software or system to learn based on the data it works with, instead of obtaining direct orders through human programming.

In other words, it is a model that adapts and trains its algorithm, as it fulfills its function and processes data, so that it undergoes a learning process in real time. In this way, a machine is able to identify patterns in data and, based on this, generate predictions.

In the world of finance, this computer tool can be used to establish predictive models, handle Big Data and perform financial analysis in times that would not be possible for humans to achieve.

Advantages: how it facilitates the work of financial companies

These are some of the most significant benefits that machine learning can bring to the financial world:

Allows objective credit risk detection

Based on a large amount of data on the behavior of financing applicants, machine learning is capable of evaluating precise variables, to help financial institutions know if an applicant may default.

Improve financial analysis

With its ability to build and nurture predictive models, machine learning is capable of taking analytics one step further. It not only indicates a potential customer’s current status or history, but also provides projections and shows whether they will pose a credit risk in the future.

Increase productivity

Machine learning in finance represents the automation of processes that would otherwise have to be carried out by humans. This allows collection work to be carried out in minutes that would have taken days, speeding up all the application and funding approval processes.

Used for fraud detection

One of the most attractive points of this technology, along with the detection of possible non-payment, is its ability to detect irregular activities. Based on analysis of transactions, data points, and behavior patterns, machine learning crosses that information and creates algorithms to detect suspicious movements and prevent fraud.

An innovative API

If you want your credit company to enjoy all the benefits of this technology, CRiskCo’s API puts artificial intelligence at your service to improve decision making.

This tool not only connects with the SAT immediately to obtain all the relevant financial data of a client, but also prepares the credit report based on artificial intelligence and machine learning.

In this way, it achieves objective and predictive analysis in minutes, to evaluate future scenarios and reduce risks in decision making. Learn more about CRiskCo and put your business at the forefront of financial technology.