# AI holds the key for both competitive advantage and risk mitigation in 2022
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-02-20
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: Safeguarding through uncertainty with AI
Meta Description: Discover how AI and innovative technology are driving success and transformation in the financial sector in 2022. Learn how companies like Klarna, Banking
URL: https://financedigest.com/ai-holds-the-key-for-both-competitive-advantage-and-risk-mitigation-in-2022html

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_By_ **_Richard Stevenson,_** _CEO, Red Box_

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Richard Stevenson, CEO, Red Box

A key advantage of the financial sector is its willingness to adopt and embrace innovative technology. Many companies in the sector have [pushed ahead](https://www.financedigest.com/kosovo-pushes-ahead-with-car-licensing-rule-resisted-by-serbs.html "Kosovo pushes ahead with car licensing rule resisted by Serbs") of competitors by identifying a space for innovation. Whether crowdfunding, mobile [banking technology](https://www.financedigest.com/cut-evidence-empower-how-technology-can-help-banks-deliver-on-cop27-commitments.html "Cut, evidence, empower: How technology can help banks deliver on COP27 commitments") or remittance technology, those that can spot problem-solving technology early have tended to flourish. Companies such as Klarna, Banking Circle or Wise have all used technological [innovation to respond to consumer desires for smooth payments systems or greater flexibility in personal finance](https://www.financedigest.com/innovations-in-finance.html "Innovations in finance").

Periods of significant change or trepidation can accelerate this process of innovation, often because companies [become more open to change](https://www.financedigest.com/quidditch-becomes-quadball-as-sports-bodies-change-name.html "Quidditch becomes quadball as sport’s bodies change name") themselves, or because they are forced to adapt. AI holds the capacity to bring about the next generation of these innovations because it can help [fintech companies and financial services to harness areas of their data](https://www.financedigest.com/2023-fintech-prediction-secure-and-private-data-usage-is-key.html "2023 FinTech Prediction: Secure and Private Data Usage is Key") which are often overlooked.

One such area is voice data which captures much of the day-to-day [operations of a business which happen not via electronic mediums](https://www.financedigest.com/ubisoft-vows-to-get-back-to-operating-margin-above-20-in-medium-term.html "Ubisoft vows to get back to operating margin above 20% in medium term"), but through person-to-person conversation. The data held within the intricacies of conversation, voice and tone could give businesses a truly [unique insight into the way](https://www.financedigest.com/5-unique-ways-to-go-greener-in-the-office.html "5 unique ways to go greener in the office") they are running and could transform, as well as provide assistance when companies are faced with operating challenges.

Over the past two years of pandemic, companies have also been presented with novel challenges relating to everyday processes and compliance. In numerous cases, it was the capacity of [voice capturing artificial intelligence-based solutions](https://www.financedigest.com/peppermint-technology-revamps-communications-with-via-voice-solution.html "PEPPERMINT TECHNOLOGY REVAMPS COMMUNICATIONS WITH VIA VOICE SOLUTION") that enabled them to continue to provide their offerings remotely. The door to innovation left ajar by those relying on AI to maintain operations throughout [covid lockdowns](https://www.financedigest.com/in-shanghai-lockdown-blues-make-way-for-covid-testing-gripes.html "In Shanghai, lockdown blues make way for COVID testing gripes") will be thrust open by those companies willing to further invest in the capacity of this technology. It is these [companies will be on the path to success](https://www.financedigest.com/setsquared-companys-maths-system-adds-up-to-pitch-perfect-palace-success.html "SETsquared company’s maths system adds up to pitch-perfect palace success") in 2022.

**Safeguarding through uncertainty with AI**

The initial imposition of Covid-19 lockdowns was the cause of significant angst from the [financial sector](https://www.financedigest.com/how-can-the-financial-sector-safely-use-the-iot.html "How can the financial sector safely use the IoT?") regarding their capacity to maintain compliance levels amongst remote workers. Fortunately, 2020 saw some regulatory leniencies when it came to the requirements placed on firms to record and monitor all communications.

Fast-forward to 2022, and these leniencies appear to have expired with the most recent guidance from the Financial Conduct Authority requiring in-office compliance standards at home – call recording, rigorous [record keeping and maintaining protection from cyber-attacks must all be considered by companies’ compliance](https://www.financedigest.com/red-box-recorders-launches-worlds-first-automated-audio-recording-compliance-verification-tool.html "RED BOX RECORDERS LAUNCHES WORLD’S FIRST  AUTOMATED AUDIO-RECORDING COMPLIANCE VERIFICATION TOOL") and security teams. Businesses and financial service providers are now presented with the [need to implement rigorous oversight and recording procedures if they are to maintain the flexible working patterns many employees](https://www.financedigest.com/5-key-things-you-need-to-know-before-hiring-your-first-employee.html "5 Key Things You Need to Know Before Hiring Your First Employee") expect.

AI is the not so hidden tool that can meet this challenge, and this is something many companies have come to recognise after nearly two-years of this pandemic. Only through AI and deep learning platforms can natural language processing take place to the extent that breaches are monitored, and security breaches minimised. This provides organisations with the ability to monitor conversations at scale and actively highlights the [detection of a compliance risk](https://www.financedigest.com/early-detection-of-mismatched-trades-is-key-to-managing-risk-and-maximizing-profits-on-the-pl-desk.html "EARLY DETECTION OF MISMATCHED TRADES IS KEY TO MANAGING RISK AND MAXIMIZING PROFITS ON THE P&L DESK") in a recording or other form of communication.

Recent [research](https://www.ft.com/content/6e0b0150-9af0-4a63-b2b7-09448defc98d) shows that finance workers are ten times as likely to share inside information and make inappropriate comments during phone calls and video chats than over email and other text-based platforms. With call recording, AI and analytics technology, organisations can now ensure teams stay compliant by analysing [voice conversations and spotting patterns and flagging potential issues](https://www.financedigest.com/voice-quality-matters-quarter-of-employees-working-from-home-still-experiencing-regular-connectivity-issues.html "Voice Quality Matters: Quarter of Employees Working From Home Still Experiencing Regular Connectivity Issues").

This [technology has already made a tangible difference to companies](https://www.financedigest.com/kelda-technology-selected-as-one-of-thetop-30-cleantech-companies-in-the-world.html "Kelda Technology selected as one of thetop 30 cleantech companies in the world"). [HSBC recently reported](https://www.finextra.com/newsarticle/37989/hsbcs-voice-id-prevents-249-million-of-attempted-fraud) that it has reduced telephone banking fraud by 50% by authenticating customers through their unique voice identifiers – a first-hand case of how AI enabled voice data analytics can be used to protect consumers and financial service providers alike.

[**Harnessing the full potential of voice data**](https://www.financedigest.com/can-financial-services-organisations-harness-data-and-bi-to-catch-up-in-the-digitalisation-race.html "Can financial services organisations harness data and BI to catch up in the digitalisation race?  ")

Yet the [benefits of voice](https://www.financedigest.com/teach-first-reaps-the-benefits-of-joined-up-communications-with-via-voice.html "Teach first reaps the benefits of joined-up communications with via voice ") data analytics are not just restricted to compliance and consumer protection, though the pandemic may have accelerated adoption in those areas. Voice technology is going to become even more [important in how consumers interact with their banks and insurance](https://www.financedigest.com/life-insurance-why-is-it-so-important.html "LIFE INSURANCE: WHY IS IT SO IMPORTANT?") providers. This trend is evidenced by the fact that over 50% of consumers in the US and UK now own a [smart speaker](https://www.financedigest.com/uk-broadcasters-to-stay-prominent-on-smart-tvs-and-speakers.html "UK broadcasters to stay prominent on smart TVs and speakers"), an estimated 128 million Americans use voice assistants, and voice assistant usage is growing globally in cars and other settings where interacting with a screen is less accessible.

This explosion in voice [technology has fundamentally changed](https://www.financedigest.com/how-technology-has-changed-our-lives.html "How Technology has Changed Our Lives") the way consumers interact with businesses in just a decade. Financial services must stay [ahead of the curve and realise the capacity of AI in keeping customer records up to date and accurate whilst maintaining the high privacy standards demanded](https://www.financedigest.com/aussie-supermarkets-set-to-capitalise-on-high-inflation-but-softer-demand-ahead.html "Aussie supermarkets set to capitalise on high inflation, but softer demand ahead") by regulators and consumers. Larger, more complex organisations such as [banks should be considering these challenges](https://www.financedigest.com/5-things-to-consider-when-choosing-a-challenger-bank.html "5 Things to Consider When Choosing a Challenger Bank") and putting a roadmap in place to stay ahead of the transformations being driven by voice technology.

AI-powered voice analytics can also [transform data](https://www.financedigest.com/how-data-governance-as-a-service-can-transform-the-financial-sector.html "How Data Governance-as-a-Service can transform the financial sector") sovereignty. It has become all too [common for financial institutions and FinTechs to employ](https://www.financedigest.com/3-common-financial-hurdles-for-the-self-employed-and-how-to-overcome-them.html "3 Common Financial Hurdles for the Self Employed (And how to Overcome Them)") third party technology companies to capture, analyse and store their data. However, this handover – mostly to major technology giants – is unpopular with consumers and disadvantageous for companies. It siloes data with external parties preventing companies from utilising it to run AI programmes or in-house analytics which could be more beneficial in the long run.

Open and ready access to voice data provides the potential for better learning because voice data so often holds the [key for understanding and facilitating operational efficiencies](https://www.financedigest.com/1-easy-tip-to-make-a-key-e-commerce-process-more-efficient.html "1 easy tip to make a key e-commerce process more efficient"). Just think of how many conversations occur within the day to day running of an organisation, not just via email but through calls. This is precisely the [reason voice recordings have become so important](https://www.financedigest.com/despite-the-headwinds-investors-have-important-reasons-to-be-cheerful.html "DESPITE THE HEADWINDS, INVESTORS HAVE IMPORTANT REASONS TO BE CHEERFUL") from a compliance perspective, but truly innovative companies will also see the potential to garner actionable insights and learnings from these conversation on a wider operational scale. Taking back [control of voice data](https://www.financedigest.com/trendrating-1-3-delivers-faster-data-analysis-and-enhanced-risk-control-tools.html "Trendrating 1.3 delivers faster data analysis and enhanced risk control tools") through AI is the next step in this innovation.


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