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How are AI Algorithms Transforming the Finance Industry?

As artificial intelligence is fundamentally changing the world, we need to know how it is impacting finance and algorithmic trading, especially at a time when markets are so vulnerable and volatile.


1. Managing Finance:

Managing finances in this materialistic world can be a very challenging task for many of us. When we look farther into the future, we can see AI can help us to manage our finances in a very effective way. The idea is so simple. It just accumulates all the data of your finance and creates your effective spending graph. Thus it has to be better personal financial management in order to save time from creating lengthy spreadsheets or even worse writing on a piece of paper. There is an amazing startup called Pefin. Pefin is the world’s first AI financial advisor. They make it easier than ever to secure a happy financial future.

2. Financial Advisory Services:

This Pws report says that we can look forward to more and more robo-advisors. As the pressure increases on financial institutions to reduce their commission rates on individual investments, machines can do what humans can’t — work for a single down payment. Another evolving area is bionic advisory. That combines machine calculations and human insight to provide much more efficient options than what their individual components offer. Collaboration is key. An excellent balance and the ability to look at AI as a component in decision-making are as crucial as the human viewpoint. This is the near future of financial decision-making.

3. Trading and Asset Management:

Trading and investments mostly depend on the ability to predict the future correctly. Machines are great at this cause they can analyze a massive amount of data in a short period. Machines can also easily find patterns in data. While oddities such as the 2008 huge financial crisis exist in data, a machine can be taught to study these data to find ‘triggers’ for the next anomalies, and use them in forecasting. Also, AI can suggest portfolio resolutions to meet each person’s demand. So a person could count on AI for decisions on when to sell, buy, and hold the stock. But those with lower risk appetite can receive the alerts for when the market is expected to fall, and could thus decide when to stay invested in the market and when to move out. We would like you to get to know about Our startup trains neural networks to predict market entry points (when to buy or sell). Atama uses historical market data with trading indicators for this.

4. Risk Assessment:

Thanks to AI, we have automation in those areas which require analytical and structured thinking. Artificial Intelligence is a game-changer for risk management in finance as it provides banks and credit unions with tools and AI solutions to identify potential risks and fraud. Today new technologies give businesses access to really tremendous amounts of data about consumers’ behavior and needs. There are a lot of nice startups like Black Swan Technology (Cyber Risk Management), SPIN Analytics (Credit Risk Management), Sharpfin (Asset Risk Management), and many others.

5. Fraud Detection And Management:

Every company wants to reduce the risk conditions that surround it. This even applies to financial institutions. AI is on top when we say about security and fraud identification. AI algorithms can use past behaviors on different transaction instruments to figure out not typical customer behavior, such as using a card from another country just a few hours after it has been used elsewhere, or an attempt to withdraw an amount of money that is unusual for the account in question. A good example could be a startup like who is used by some well known dutch payment providers and scanned over 20 Billion EUR in the last 6 months.

Without any doubt, AI is the future of the finance industry. And the future of the world. The speed at which it is making progressive steps towards making the financial processes easier for all customers, will soon replace human work and provide faster and much more efficient solutions for all businesses. Bots are regularly developing as innovations are being in the AI sector. Massive investments are being made by the firms who are seeing this as a long-term cost-cutting investment. It helps companies save money from hiring humans and avoiding human errors in this process.

However, it is still in its very beginning stage the speed at which it progresses to expand the finance sector.

About Atama is the leading startup in the AI trading world. We offer the opportunity to trade with AI algorithms. Learn more about how we can help your portfolio grow here.



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Atama.AI develops AI-based trading algorithms that can predict whether asset price will go up or down with some reasonable probability. 2 years of R&D ✓