Chapter 9: Revolutionizing the Indigenous Financial System With the Utilization of Artificial Intelligence

Artificial Intelligence (AI) plays a pivot role in the development of the financial sector and promotes the economic development of the country. Indigenous financial sector comprises of private institutions as well as the individuals which are indulged in providing the banking services such as accepting deposits and providing loans. Indigenous financial system (IFS) has transformed with the incorporation of the AI-based technologies which empowers the financial sector to design the tailor-made services and facilitates the digitalization of the services and identifies and prevents the frauds. The exponential rise of the FinTech start-ups demonstrates how the integration of the technology transformed the financial sector. This chapter is dedicated toward identifying the implications of AI in the financial sector. Additionally, it focuses how the use of the AI helps the financial institutions in making sound financial strategies. In order to understand the use of AI in the IFSs and identify its implication on IFSs, the review of the available literature is conducted. The study shows that the employment of AI in financial management operations aids the firm in credit scoring of the customers and firms, designing and providing client-facing chatbots, know your customer, identifying the potential risk of frauds, offering the highly personalized financial services, achieving the time and cost-efficient services, effectively engage the customers and enhances connectivity with customer across the multiple platforms. The study shows that using artificial intelligence in financial management operations and to stay competitive in this digital era.