Can Augmented Intelligence Improve Finance and Accounting?
How to Solve Accounting Challenges in Business with Augmented Intelligence
The challenges faced by finance and accounting teams are like the underwater icebergs that can crash a huge ship. The Titanic sank because of poor decision-making. Likewise, weak financial decisions can affect your business. This blog will help your finance and accounting teams to identify the hidden challenges and provide insights on how to use Augmented Intelligence to overcome complex business challenges effectively.
5 Reasons Why Augmented Intelligence Is Gaining Importance
Many businesses are embracing Augmented Intelligence because;
- Enormous volumes of data can be processed quickly and efficiently with Augmented Intelligence.
- Accounting tasks such as audits, payrolls, taxes, and banking can be automated using Augmented Intelligence.
- Due to its ability to continuously learn, Augmented Intelligence can constantly improve efficiency while eliminating the risk of human error.
- It enables humans to make crucial decisions without bias by providing fair information and recommendations.
- Tedious tasks such as bookkeeping can be automated and streamlined.
Top 4 Solutions Offered by Augmented Intelligence
Challenge 1: Protecting the business from fraud
According to the 2018 global fraud and identity report, 63% of businesses still continue to experience the same number or more fraud losses than the preceding year. And only 54% are ‘somewhat confident’ in their ability to detect fraudulent activity. The wide variety of fraud types and the enormity of the work involved in reviewing the data manually or by rule-based systems can make the detection and prevention of fraud a huge challenge.
With the help of Augmented Intelligence, large transactions can be analyzed in real-time which helps in detecting fraud. Since Augmented Intelligence can even categorize the score of fraudulent activity, investigators are able to prioritize their work effectively. Once the fraud is detected, Augmented Intelligence allows you to reject the transaction outright. Since Augmented Intelligence continues to learn from past data, it can learn from investigators’ reviews and understand how to discern patterns that lead to fraudulent activities.
Challenge 2: Risk Assessment
While evaluating potential risks in lending money or providing credit, businesses could end up denying credit without assessing their current situation using traditional methods. Worse yet, they could end up approving credit to churners who could affect profits. The organization might also face the challenge of explaining to the consumer the reason for denying them credit.
Augmented Intelligence helps you assess your customers’ current income and recent credit history based on the enormous data that is available at hand. This allows for a more realistic and accurate assessment of each borrower. Such kind of assessment allows financial firms to make more individualized decisions. Besides, Augmented Intelligence can provide reason codes which would explain the important aspects involved in credit decisions, making it easier to provide reasons why credit is being denied.
Challenge 3: Trading and Investment
According to a 2018 survey conducted in the US, 70% of millennials use mobile banking in the US alone. And this figure is steadily increasing all over the world. Businesses cannot function without mobile applications. It has become a channel of interaction with customers who would like to review transactions, pay bills and find customer service. Failed interactions would translate into increased customer churn, lost transactions and even lost revenues.
Augmented Intelligence can assist your business in detecting anomalies in transaction volume by identifying the triggers for such anomalies. Based on previous data patterns, the system can look at expected data volumes which can then be compared with real-time transaction values. This will help in your decision-making process because it clearly and quickly indicates the highs and lows of a transaction by suggesting solutions that meet each individual demand.
Challenge 4: Combating Money Laundering
It is estimated that the amount of money laundered globally in one year is 2 – 5% of the global GDP! And this seems to be increasing at an alarming rate. To combat money laundering, extensive investigations must be performed by the finance and accounting teams.
Augmented Intelligence can detect suspicious and complex transactions and raise a red flag on such transactions so investigators can further examine them. Augmented Intelligence can learn from each experience and more effectively safeguard your firm.
Related Reading: The Future Of Communication and Security Using Augmented Reality
Discover New Growth Opportunities by Applying Augmented Intelligence
Augmented Intelligence can help finance and accounting teams reduce costs, improve operations, increase consumer satisfaction and reduce the time taken for various processes by 80-90%. It can also reshape your entire organization from internal operations to treasury services. It can assess the available unstructured content and help your business unlock valuable insights from them. This enables smarter decision making, which in turn helps in the growth of your business.
When your business adopts Augmented Intelligence as part of your methodology, it gives your customers benefits that will lead to loyalty and growth. Fingent has been helping many clients achieve this, and we can help you too. Give us a call and let’s discuss.