A neural network is a system of algorithms that attempts to identify underlying associations in a set of data using a method that mimics how the human brain works. In the fields of AI, machine learning, and deep learning, neural networks mimic the actions of the human brain, allowing computer programmes to identify patterns and solve common problems.
Neural networks are assisting financial services companies in automating increasingly complex processes and decisions, which can reduce costs, increase accuracy, and provide a competitive advantage.
Using satellite and street view photos to verify the presence of a company as part of know your consumer and anti-money laundering tests, neural networks are assisting the banking industry in fraud detection for credit card transactions, overdraft predictions based on the customer’s transaction history, and using neural networks to detect fraud for credit card transactions.
Neural networks are used to make predictions for stock market indices and stock prices based on historical data and various parameters.
Banks grant loans to customers based on a variety of factors. To underwrite a loan and determine whether to accept or deny the application, neural networks are used. Banks want to reduce the number of loan applications that fail and increase the amount of money they make on the loans they make.
Through gathering and processing data from wearable devices and analysing consumers’ experiences with the insurer to give discounts to customers who choose to leave, neural networks are assisting insurance providers in predicting health risks and suggesting healthier lifestyle changes.