Finance

Financial industry leaders are grappling with myriad challenges, from regulatory compliance and cybersecurity threats to the need for sustainable growth amidst economic uncertainties. On top of that, they have to manage digital transformation and keep up with customer expectations. But there’s good news. Advanced technologies such as AI and data analytics offer innovative solutions to these pressing issues.

Common business concerns of finance industry leaders

1
Safeguarding data against cyberthreats
For financial sector leaders, safeguarding client data against cyberthreats is of utmost importance. Not only do cyber breaches incur additional repair costs, but they also risk tarnishing the institution's reputation among its customers.
2
Superior modeling techniques (data for financial modeling)
In the fierce competition of today's market, leaders are eager to leverage their data to improve financial modeling. They aim to enhance the precision and accuracy of their forecasts. Having superior modeling techniques can be key differentiator when vying for the same customer base as competitors.
3
Navigating evolving regulations
Executives in highly regulated sectors, like finance, constantly navigate evolving regulations that may affect their business practices. Failing to keep abreast of these changes can result in monetary penalties, reputational damage, and increased regulatory oversight.
4
Onboarding new clients
In the realm of finance, grasping the risks tied to onboarding new clients and associates is of paramount importance. Leaders in the industry are constantly seeking innovative methods to mitigate the perils of entering into relationships with customers who exhibit a high-risk profile.

How AI can address challenges for executives in the financial sector

AI is revolutionizing the way financial services firms bolster their cybersecurity. By sifting through enormous datasets, AI can spot odd patterns and sniff out potential security threats as they happen, cutting down the chances of fraud and cyberattacks. This proactive approach doesn't just shield the company; it also keeps customer information safe, building a foundation of trust and reliability.
Companies in the financial sector can leverage AI to boost the customer experience by delivering tailored financial guidance and product suggestions. These are based on the customer's unique transaction records and spending patterns, enriched with data from other clients. Such customization enhances customer contentment and fidelity, considering their financial circumstances and spending behaviors.

Statistics

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AI adoption in the finance sector has seen a dramatic increase, rising from 45% in 2022 to an expected 85% by 2025.7

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56% of financial services companies have adopted AI for risk management.8

Enhancing financial data protection with AI

A finance company faces the challenge of protecting sensitive customer data and financial assets from cyber threats. Cybercriminals are busy at work creating more refined tactics to attack system vulnerabilities. In the future, it's expected that cyberattacks driven by AI will become increasingly prevalent. The company's leaders decided to incorporate AI driven solutions into its infrastructure to strengthen its security position and to aid in other key areas that will drive additional value to the business.

Fraud detection

The institution integrated an AI-based fraud detection system that uses machine learning algorithms to analyze transaction patterns and detect anomalies in real-time. This new AI-driven system reduces the risk of fraudulent transactions with real-time insights, ensuring customers’ funds are secure.

Anti-phishing

Systems powered by AI can identify and block phishing threats by scrutinizing email trends and marking out any unusual behavior before it impacts customers. This forward-thinking strategy is key in protecting customers' sensitive data and financial details.

Incident response

A SOAR (Security Orchestration, Automation, and Response) solution was implemented to automate incident response processes, allowing for faster and more efficient handling of security threats.

Threat monitoring

AI tools were employed to continuously monitor network traffic and gather threat intelligence, enabling proactive identification and mitigation of potential threats. These tools allow the company to remain vigilant against emerging threats with ongoing protection, ensuring a safer banking environment.

Personalized marketing

To drive more value for customers, the company uses AI-powered predictive analytics and machine learning algorithms to analyze customer data and behavior. By examining transaction histories, browsing patterns, and social media activity, AI identifies customer preferences and predicts future needs. For example, if a customer frequently searches for mortgage information, the AI system can identify this interest and prompt the marketing team to send personalized mortgage offers and educational content. This targeted approach ensures that customers receive relevant and timely information, enhancing their engagement and satisfaction.

Trade execution

Leadership also decided to use AI-driven algorithms to execute trades at optimal times based on real-time market data analysis. These algorithms can process information faster than human traders, leading to more profitable trades and reduced market risks.
By leveraging AI, the finance company significantly improves its cybersecurity posture, protecting itself and its customers from the evolving landscape of cyberthreats.

AI-optimized solutions for enhanced customer experiences

Technologies working in tandem can further enhance customer experiences by integrating AI-driven insights with other advanced tools such as edge computing, cybersecurity, high-speed connectivity and managed and professional services—creating a seamless and personalized financial journey for your customers.
Threat detection
Cybersecurity systems, enhanced by AI, can learn from each incident, improving their accuracy and response over time. This proactive approach helps to predict and prevent cyberattacks, leading to increased customer trust in the bank’s security measures.
High-performance networking
Robust network solutions allow AI systems to easily convey large amounts of data to applications that can analyze and transmit insights to leaders. These large data sets can be transferred between multiple sites to refine AI-driven financial models, improving the speed of innovation and output accuracy.
Edge computing
For a customer using various AI applications, it's essential to have a scalable network with low latency capable of managing vast data volumes. Edge computing solutions bring data processing closer to the source, resulting in lower latency. This is crucial for quickly spotting fraudulent actions and minimizing the chances of data breaches during data transmission.
Managed and professional services
Managed and professional services offer crucial support to finance companies in adopting AI, providing expertise in areas like fraud detection, risk management and customer service automation. They facilitate seamless integration of AI with established systems, train employees, and maintain and fine-tune the AI solutions, contributing to heightened efficiency, precision and business success.

AI’s impact across the enterprise

AI is revolutionizing operations, driving efficiency and fostering innovation in numerous ways across the enterprise. Here are some additional areas where AI is making a profound impact:
Credit risk assessment
Customer access
Financial robo-advisory
Customer service automation
Credit risk assessment
Customer access
Financial robo-advisory
Customer service automation

Credit risk assessment

AI models evaluate a customer’s creditworthiness by analyzing various data points, including transaction history and social behavior. These AI-driven models can result in faster and more accurate loan approvals for financial institutions.
Credit risk assessment
Customer access
Financial robo-advisory
Customer service automation

Customer access

Customer authentication is enhanced through AI-powered biometric systems that use facial recognition, voice recognition, and behavioral analysis to verify identities. This ensures secure and seamless access to financial services, reducing the risk of identity theft and fraud.
Credit risk assessment
Customer access
Financial robo-advisory
Customer service automation

Financial robo-advisory

Robo-advisors, powered by AI, can tailor investment portfolios to align with individual goals and how much risk a customer is willing to take. This technology provides a low-cost, automated way to handle investments, simplifying the process for customers to increase their financial assets.
Credit risk assessment
Customer access
Financial robo-advisory
Customer service automation

Customer service automation

Chatbots and virtual assistants are always on hand to provide support, fielding questions and aiding with transactions around the clock. They handle routine queries instantly, freeing up live agents to tackle more complex issues. By working together, these customer service solutions can enhance overall customer satisfaction.

Credit risk assessment

AI models evaluate a customer’s creditworthiness by analyzing various data points, including transaction history and social behavior. These AI-driven models can result in faster and more accurate loan approvals for financial institutions.

Customer access

Customer authentication is enhanced through AI-powered biometric systems that use facial recognition, voice recognition, and behavioral analysis to verify identities. This ensures secure and seamless access to financial services, reducing the risk of identity theft and fraud.

Financial robo-advisory

Robo-advisors, powered by AI, can tailor investment portfolios to align with individual goals and how much risk a customer is willing to take. This technology provides a low-cost, automated way to handle investments, simplifying the process for customers to increase their financial assets.

Customer service automation

Chatbots and virtual assistants are always on hand to provide support, fielding questions and aiding with transactions around the clock. They handle routine queries instantly, freeing up live agents to tackle more complex issues. By working together, these customer service solutions can enhance overall customer satisfaction.
Keep reading to discover how our capabilities can assist retailers in fully leveraging the benefits of AI. 

Capabilities

As of now, you’ve already witnessed the transformative power of AI in boosting your organization by helping you analyze market data in real-time to identify trading opportunities and execute trades faster than human traders or analyze vast amounts of transaction data to detect unusual patterns and flag potential fraudulent activities. However, your AI strategy will fail without the proper infrastructure. Reliable networking is crucial to transfer all the data fed into your AI models (financial market data, stock prices, financial transactions, customer demographics, credit histories from bureaus, etc.) from and to the cloud or datacenter. Robust cybersecurity is essential to safeguard all this valuable data and AI infrastructure from ever evolving threats. Low latency is vital for obtaining the real-time insights you are expecting from AI-powered systems to optimize your operations in all the branches and digital assets. Lastly, expert guidance is critical to ensure the successful infrastructure implementation and continuous support to empower your AI initiatives.

Networking

Problem to solve

AI systems are transforming the finance industry, from risk management to audit processes. However, these AI systems need to handle vast financial data volumes efficiently. Without efficient data transmission from the cloud or data center at lightning-fast speeds these AI systems hinder their effectiveness.
If the network infrastructure is not robust, financial institutions could face significant delays in processing transactions and analyzing data. This lag can lead to slower decision-making, increased operational costs and a higher risk of errors. For end customers, this means longer wait times for transaction and loan approvals, potential inaccuracies in account information and a general decline in service quality. In a competitive market, such inefficiencies can erode customer trust and loyalty, ultimately impacting the institution’s reputation and bottom line.

Why network infrastructure is critical for AI 

As AI systems become increasingly embedded in critical financial processes such as highly accurate market predictions, risk management and accounts payable automation, the demand for high-speed, low-latency networks will only intensify. These systems depend on efficient data transmission to manage the enormous volumes of data necessary for accurate and timely outcomes.
Without a reliable network, the smart loan processing system may experience significant delays in data transmission and communication between various components. This can lead to slower loan appovals, increased processing times, and a poor customer experience. Inconsistent network connectivity can also result in incomplete or lost data, further complicating the approval process.
For financial institutions, robust networking infrastructure is not just a technical necessity but a strategic imperative for their AI strategy. It ensures that AI applications can operate at peak efficiency, providing real-time insights and decision-making capabilities that are crucial in the fast-paced financial sector. By investing in advanced networking infrastructure, financial leaders can future-proof their operations, enabling AI-driven innovations to scale seamlessly and adapt to fast-evolving market demands without interruption. This investment is a cornerstone for maintaining competitive advantage and operational resilience in an industry where milliseconds can make a significant difference.

How network solutions enable AI

Networking solutions empower AI systems to maintain control over financial data, market and customer information, and network traffic. They help ensure efficient high-bandwidth cloud connectivity anytime without impacting their regular financial operations. Whether the organization is leveraging AI to automate accounts payable, predict market trends or improve accuracy in their decision-making processes, they require networking solutions for operational efficiency and optimal performance of AI systems.
High-speed, reliable networks empower AI systems to analyze vast amounts of market data, stock prices, financial transactions, customer demographics, credit reports and other kinds of financial data. This analysis provides  insights that help drive smarter decisions, more efficient operations and seamless data exchange, enabling financial institutions to make informed decisions swiftly and manage their risks better. From identifying and executing trading opportunities faster than human traders, or analyzing vast amounts of financial transaction data to detect unusual patterns, the synergy between AI and advanced networking solutions ensures that finance organizations stay ahead of the curve. In essence, a strong networking foundation is the backbone that supports the sophisticated AI-driven innovations reshaping the financial landscape.

Conclusion

AI systems are transforming the finance industry, enhancing core processes from risk management to customer experiences. Networking solutions are essential for finance organizations to fully harness the power of AI, improving efficiency, accuracy and decision-making in their operations. A reliable, dedicated and scalable networking infrastructure is vital for minimizing latency and providing sufficient bandwidth, ensuring AI systems function seamlessly and drive success in the intricate financial landscape.

Cybersecurity

Problem to solve 

AI systems in the finance industry handle vast amounts of sensitive and confidential information like stock exchange data, financial transactions, customer demographics and credit reports, making them vulnerable to unauthorized access, model manipulations and cyberthreats. Additionally, the increasing sophistication of AI has  paved the way for more elaborate cyberthreats. Highly robust, cutting-edge cybersecurity standards are critical to protect data integrity, confidentiality and operational availability in a more complex security landscape.
When financial organizations handle large volumes of data without proper cybersecurity measures, they risk data breaches that can expose sensitive customer information. This can lead to identity theft and financial fraud, damaging the organization's reputation and eroding customer trust and loyalty. Customers may experience service disruptions, such as website outages, inability to use their funds or compromised transaction security, leading to a frustrating and unsafe experience. Ultimately, inadequate cybersecurity can result in vulnerabilities in the AI strategy, significant financial losses, legal repercussions and a tarnished brand image.

Why cybersecurity infrastructure is critical for AI

Despite all the benefits that come with them, vulnerabilities multiply when organizations implement AI-powered tools. As AI systems become integral to financial operations—from assisting with highly accurate market predictions and risk management to automating accounts payable processes—the stakes for security rise exponentially. Financial organizations need AI strategies to safeguard customer and organizational data whether at rest or in transit, as well as protect AI-driven processes from unauthorized access, model manipulations and cyber threats.
A robust cybersecurity infrastructure empowers financial institutions to harness the full power of AI by ensuring the integrity and reliability of AI systems. When financial leaders can trust that their AI tools are secure, they can confidently leverage these technologies to drive innovation and efficiency. This trust is essential for adopting advanced AI applications, such as real-time fraud detection and personalized customer experiences, which can significantly enhance competitive advantage. Moreover, a strong cybersecurity framework mitigates the risks of data breaches and cyberattacks, protecting the institution’s reputation and maintaining customer trust. By prioritizing cybersecurity, financial institutions can fully exploit AI’s potential to transform their operations and deliver superior value to their stakeholders.

How cybersecurity enables AI 

AI-powered cybersecurity solutions are essential for protecting data and systems from sophisticated threats. These solutions also play a crucial role in ensuring the safe and effective operation of advanced AI technologies that help financial organizations with advanced treasury and risk management secure highly confidential customer data. Safeguarding sensitive data and AI systems from unauthorized access, model manipulations and cyberthreats such as denial-of-service attacks or malware is critical for maintaining data integrity, confidentiality and availability. Comprehensive cybersecurity solutions are essential for protecting data and systems and ensuring the smooth functioning of AI systems. This in turn helps build trust and confidence among customers, partners, regulators and stakeholders.
AI’s dependence on large datasets makes it particularly susceptible to cyberthreats. If malicious actors inject false information into these systems, it can significantly alter AI behavior, leading to poor decision-making. For financial institutions, this could result in inaccurate treasury assessments, missed trading opportunities, and ultimately, a negative impact on profits. By implementing strong cybersecurity measures, financial institutions can ensure their AI systems rely on accurate and reliable data, enabling informed decisions that drive success and customer satisfaction. Robust cybersecurity solutions are crucial for protecting data and systems, ensuring the smooth operation of AI, and building trust and confidence among customers, regulators and stakeholders.

Conclusion

Robust cybersecurity infrastructure is not just beneficial but necessary for finance organizations leveraging AI systems. By ensuring the safe and effective operation of advanced AI technologies, cybersecurity solutions protect sensitive data against complex threats, minimize downtime and enhance customer experience, helping build trust and confidence among finance leaders and stakeholders.

Edge Fabric

Problem to solve

As AI initiatives take off, the influx of data requires an infrastructure strategy for secure connectivity, storage, access and transmission of that data for real-time processing and decision making. Traditional networks and infrastructure simply can’t keep up with the demand.
AI systems in the finance industry require minimal latency and real-time, local processing to enable AI to improve processes such as  treasury and risk management, fraud detection, high-frequency trading and credit scoring in real time. Without the proper Edge Fabric infrastructure, these AI systems would face significant challenges because data would create bottlenecks as it attempted to move across a dispersed network to a data center and back again.
Delays and inefficiencies would become commonplace, severely impacting the speed and accuracy of critical financial operations. This could lead to slower transaction processing times, increased vulnerability to fraud and suboptimal risk management. High-frequency trading algorithms would suffer from latency issues, potentially resulting in substantial financial losses. Credit scoring models would be less responsive, affecting the ability to make timely lending decisions. Ultimately, end customers would experience frustration due to slower services, reduced reliability and a lack of confidence in the financial institution’s ability to manage their assets effectively.

Why edge fabric solutions are critical for AI

Edge fabric infrastructure empowers financial institutions to harness the full power of AI in their operations by providing a robust and scalable foundation that supports the seamless integration of AI-driven tools and applications. This infrastructure allows financial institutions to leverage AI for predictive analytics, risk management and personalized customer experiences, ultimately driving innovation and competitive advantage. By ensuring minimal latency and real-time processing, edge fabric solutions enable advanced AI technologies to operate efficiently and meet user expectations, which leads to trust and confidence among investors, customers, regulators and other stakeholders. Additionally, edge fabric solutions help strengthen the security posture and compliance by enhancing data sovereignty and containing the security footprint. This comprehensive approach not only optimizes operational efficiency but also fosters a culture of innovation and agility, enabling financial institutions to stay ahead in a rapidly evolving financial market.
Without an edge fabric, each branch may struggle to process loan approvals in real-time. This can lead to delays in loan approvals as data needs to be sent to centralized servers for processing, increasing latency and reducing overall system perfomance.

How edge fabric enables AI?

For organizations seeking a flexible digital infrastructure with low latency, speed and security, a network connectivity fabric can be customized to leverage existing lit fiber network, expand new routes to connect to the datacenter and consumed or reconfigured on demand as data demands increase.
Edge fabric solutions enhance AI application performance in finance organizations by seamlessly integrating advanced computing capabilities directly within their operational frameworks. This strategic alignment ensures that AI-driven insights are not only generated swiftly but also applied in real time, enabling financial leaders to make informed decisions with unprecedented speed and accuracy. By reducing latency and enhancing processing speeds, edge fabric solutions facilitate instantaneous risk assessments and credit evaluations, ensuring that financial institutions remain agile and responsive in a rapidly evolving market. Furthermore, the ability to keep data locally while streamlining cloud connectivity ensures robust regulatory compliance and enhances the overall security of sensitive financial information. This transformative approach allows financial institutions to leverage AI for predictive analytics, fraud detection, personalized customer experiences and other cases where immediacy is critical, ultimately driving innovation and maintaining a competitive edge in the industry.

Conclusion

Edge fabric solutions are essential for financial organizations to fully harness the power of AI. They ensure efficient and effective operation of AI technologies, creating personalized customer experiences, optimizing risk management and building trust among investors, customers and stakeholders.

Managed & Professional Services

Problem to solve

Identifying and maintaining the proper infrastructure for AI systems in the finance industry can be challenging. Without the properly managed and professional expertise, financial institutions risk facing significant operational disruptions. AI systems could become unreliable, leading to frequent downtimes and errors in critical processes they now control like treasury and risk management and fraud detection. This lack of stability can erode trust among clients, investors and stakeholders as they experience delays and inaccuracies in services such as transaction processing and fraud detection. Additionally, the absence of expert management can result in security vulnerabilities, exposing sensitive financial data to potential breaches and cyberattacks. Ultimately, end customers would bear the brunt of these issues, facing frustrating service interruptions, compromised data security and a general decline in the quality of financial services they receive. This could lead to a loss of customer confidence and a negative impact on the institution’s reputation and bottom line.

Why managed and professional services are critical for AI

For finance organizations on the AI transformation journey, expert guidance provides tailored assessments to ensure AI systems are correctly deployed and seamlessly integrated into operations so these organizations could benefit from everything AI has to offer like credit scoring and high-frequency trading, among others. Managed and professional services play a crucial role in this process by offering and maintaining the robust infrastructure needed to support these advanced AI applications. These services ensure that financial institutions have access to the latest technology, continuous monitoring and expert support, allowing them to focus on innovation and strategic growth. By leveraging managed services, finance leaders can mitigate risks, enhance operational efficiency and stay ahead of the competition in a rapidly evolving market.

How managed and professional services enable AI

A team of experts can provide tailored assessments to guide the retail organization during deployment and ensure the infrastructure aligns with the retailer’s needs. By leveraging managed and professional services, retailers can establish a robust and scalable infrastructure that supports their AI initiatives. These services ensure that the necessary hardware, software, and network components are in place, optimized for the unique demands of AI applications.
Once in operation, experts manage the network, edge fabric and cybersecurity tools to ensure AI systems are running efficiently, maximizing performance and uptime and allowing internal resources to focus on core business projects and now AI-powered processes such as smart inventory management. This comprehensive support not only enhances the reliability and security of AI systems but also empowers retailers to innovate and stay competitive in a rapidly evolving market.

Conclusion

Managed and professional services are crucial for retail organizations to fully leverage the potential of AI. They provide customized assessments to streamline the deployment and integration of AI systems. Additionally, they offer around-the-clock management to ensure that the infrastructure enables AI systems to provide personalized shopper experiences and efficient inventory sourcing.
Keep reading to find out how Lumen can serve your retail organization in its AI transformation journey. By leveraging robust networking, edge fabric and cybersecurity solutions, we can empower your AI systems to provide seamless and secure shopping experiences, optimized inventory management, and personalized customer service, driving innovation and operational excellence in your retail business.

Our expertise at a glance

As a trailblazer in global networking for financial services firms, Lumen is your strategic ally in the AI era. We can deliver AI-ready infrastructure with broad coverage and unique fiber network routes, providing capacity and flexibility to meet your dynamic finance demands. Our forward-thinking solutions span network, cybersecurity and Edge Fabric suites, supported by a team of experts to optimize your network performance and security. 

Reliable network for financial services firms 

  • Expertise: Leverage Lumen knowledge and experience in AI and load balancing to optimize your finance environment.
  • Seamless integration: Enable smooth integration of AI tools with existing finance infrastructure. 
  • Scalability: Get scalable solutions that grow with your finance needs, helping your network handle increasing demands.

Robust cybersecurity measures for financial services firms 

  • Specialization: Leverage our expert knowledge in AI and cybersecurity tailored specifically for finance environments.
  • Seamless integration: Enable smooth integration of AI-driven cybersecurity tools with existing finance infrastructure.
  • Enhanced support: Take advantage of dedicated support and resources to address unique security challenges faced by financial services firms.

Edge fabric for financial services firms  

  • Minimal latency and real-time processing: Enable efficient data transfer and processing to meet the high demands of finance environments and customer expectations.
  • Scalability and flexibility: Support the growth of AI and data-intensive applications with scalable solutions tailored for financial services firms.
  • Enhanced performance and cost savings: Optimize data flow and minimize operational expenses in large-scale deployments.
  • Compliance and security: Enhance data sovereignty and provide robust security measures to meet stringent finance operational requirements.

AI-ready infrastructure solutions

Networking Solutions
Unleash your business potential with networking solutions that enable inteligent automation, real-time performance data and dynamic bandwidth scalability.
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Security Solutions
Secure your digital environments and maximize productivity with award-winning cyber defense built for today's digital security landscape.
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Edge Private Cloud
Fully managed, pre-built infrastructure for high-performance private computing connected to our global fiber network.
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Managed & Professional Services
Proven technology expertise and results you can trust.
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Why Lumen

By partnering with Lumen, you can ensure that your AI initiatives are built on a solid foundation, enabling you to unlock new growth opportunities and stay competitive in a rapidly evolving digital landscape.

SEE WHY
7Dave Andre. Unveiling the Impact and Future: AI in Finance Statistics for 2024. All About AI.com, July 24. 
8Dave Andre. Unveiling the Impact and Future: AI in Finance Statistics for 2024. All About AI.com, July 24.