If there’s one thing paving the way for innovation in the financial sector, it’s artificial intelligence (AI). AI in finance encompasses everything from chatbot assistants to fraud detection and task automation. As AI gains popularity in banking and demands for smarter and more convenient ways to manage money increases, financial institutions are building on their existing solutions to solve increasingly complex challenges.

According to Forbes, 70% of financial firms are using machine learning to perform things like cash flow predictions, adjust credit scores, and detect fraud. In fact, the market value of AI in finance was estimated to be $9.45 billion in 2021 and is expected to grow 16.5%  by 2030. 

In this article, we uncover the applications, benefits and impact AI is having on financial services.

Artificial Intelligence in Financial Credit Decisions

AI solutions are helping  credit lenders and banks make smarter underwriting decisions by using various factors that more accurately assess traditionally underserved borrowers in the credit decision making process. 

Here are some companies who are revolutionizing the underwriting process:


Ocrolus offers document processing software that combines machine learning with human verification. Ocrolus’ software analyzes bank statements, pay stubs, tax documents, mortgage forms, invoices and more to determine loan eligibility, with areas of focus including mortgage lending, business lending, consumer lending, credit scoring and KYC.

DataRobot enables Financial Services companies to automate the painful pieces of the ML lifecycle, giving data science teams the time and tools to focus on business impact. Institutions that use DataRobot can better understand, govern, and evaluate their models, find investment opportunities quickly, expand their portfolios, and nimbly respond to rapidly changing market conditions.

DataRobot tools for Ai in Fintech

Zest AI

Zest AI is an AI-powered underwriting platform that helps companies assess borrowers with little to no credit information or history. Using more data, better math, and smarter software, lenders can safely expand credit access through more accurate risk prediction, faster credit decisions, and more inclusive lending.

Zest AI

Artificial Intelligence in Improving Predictions & Managing Risk 


Financial experts are turning to machine learning to more accurately  pinpoint trends and identify risks in order to make more informed decisions for businesses. Here are a couple of companies that are using artificial intelligence in finance to help banking institutions improve predictions and manage risk more efficiently. 


Simudyne’s platform allows financial institutions to run stress test analyses and test the waters for market contagion on large scales. The company offers simulation solutions for risk management as well as environmental, social and governance settings. Simudyne’s secure simulation software uses agent-based modeling to provide a library of code for frequently used and specialized functions.


SymphonyAI Sensa-NetReveal provides financial crime, risk management and fraud detection and prevention across banking, financial markets, and insurance. Their suite of Unauthorised Trading and Anti-Money Laundering solutions are specifically designed to support capital markets customers.

SymphonyAI Netrevea


Artificial Intelligence in Personalized Banking

As of 2022, 78% of adults in the U.S. prefer to bank via a mobile app or via a website. Only 29% of Americans prefer to bank in person. AI assistants, like chatbots, use AI to generate instant customer service and personalized financial advice.

Here are  two companies using AI to learn from customers and create a better banking experience.


Trim is a money-saving assistant that connects to user accounts and analyzes spending. The smart app can cancel money-wasting subscriptions, find better options for services like insurance, and even negotiate bills. According to a 2021 Finance Buzz article, trim has saved more than $20 million for its users.

Ally Assist

Ally Assist is the virtual assistant in Ally Financial’s mobile banking application. Ally Assist is both text and voice-enabled, meaning users can simply speak or text with the assistant to take care of their banking needs. Ally Assist also has the ability to predict customer needs by analyzing accounts and transactions to present context-aware topics and messages to customers.

Artificial Intelligence in Fraud Detection

Cybersecurity and fraud detection efforts are an absolute necessity for any bank or financial institution. AI plays a key role in improving the security for users, helping to prevent hackers and identity thieves from accessing bank accounts and personal information.

Here are some companies striving to make mobile and online banking safer and more reliable.


Feedzai is a software company that offers end-to-end fraud-fighting and anti-money laundering solutions to retail banks. Using machine learning and risk management tools, Feedzai provides banks and their customers with multi-channel fraud protection for issues like account takeover, transaction fraud and new account verification.


Vectra offers an AI-powered cyber-threat detection platform, which automates threat detection, reveals hidden attackers specifically targeting financial institutions, accelerates investigations after incidents and even identifies compromised information.Unlike other artificial intelligence that simply detects anomalies and requires constant input from analysts, Vectra AI prioritizes what’s urgent for each environment. Analysts can focus on what actually matters to stop ransomware and other attacks that cause the most damage — in record time.

Vectra platform


Darktrace’s AI, machine learning platform analyzes network data and creates probability-based calculations, detecting suspicious activity before it can cause damage for some of the world’s largest financial firms. Bank One implemented Darktace’s Antigena Email solution to stop impersonation and malware attacks, according to a case study. The bank saw a rapid decrease in email attacks and has since used additional Darktrace solutions across its business.

Darktrace DETECT

We Design and Build User Experiences for Fintech

To be successful in today’s digital age, companies in the financial sector will need to embrace emerging technology, remain flexible to adopt evolving business models, and put customers at the center of every decision. Catalyst has deep experience in fintech, helping  financial institutions build and optimize their applications. If you need help or ideas on how to simplify your digital solution, contact us. We offer a free 30 minute consultation.