Industries
Finance

Artificial intelligence (AI) is revolutionising the UK's financial services and fintech sectors, driving innovation, improving customer experiences, and boosting efficiency. AI allows financial institutions to leverage data for better decision-making, process automation, and personalised services.

This digital transformation enhances the competitive edge of financial firms, ensures better risk management, and simultaneously facilitates compliance with regulatory standards.

Dataslab, in partnership with our reliable vendors, offers enhanced data optimisation, security measures, and compliance solutions tailored for players in the financial sector. Our solutions ensure robust data handling, stringent security protocols, and adherence to regulatory requirements, empowering financial institutions to operate efficiently and securely.

Industry Statistics and Facts
UK financial services market AI expenditures expected to reach £27.2-£35.6 billion by 2025 (CAGR of 12.6%) (GOV.UK, FDS Reports).
15% of UK financial services firms and 68% of large financial companies have adopted AI.
AI adoption in UK financial services projected to reach 34.8% by 2040, driving expenditure up to £83.5 billion (GOV.UK).
The use of AI in banking for credit scoring and loan underwriting has improved risk assessment accuracy by 25%, reducing default rates significantly (McKinsey).
83% of UK banks have integrated AI-driven customer service chatbots to enhance customer engagement and service efficiency (Capgemini).
60% of financial institutions anticipate significant cost savings.

AI integration in the UK financial services and fintech sectors is driving significant advancements, enhancing operational performance and customer satisfaction while ensuring compliance with regulatory frameworks. Investing in AI and machine learning technologies gives fintech companies a competitive edge, enabling them to innovate and grow in a rapidly evolving market.

Use cases

AI and machine learning (ML) provide advanced data analytics capabilities, allowing fintech companies to make more informed and accurate decisions. These tech applications can process enormous amounts of data in real time, uncovering insights that traditional methods might miss (GOV.UK).

AI-driven customer operations and customer service solutions (CSM) (chatbots or virtual assistants) enhance customer interactions by providing timely and personalised responses. A series of sophisticated application that leads to increased customer satisfaction and loyalty (OliverWyman).

Automation of routine tasks through AI and ML reduces operational costs and increases efficiency. For example, robotic process automation (RPA) can efficiently handle repetitive tasks, helping companies redirect their human resources towards more strategic activities (Deloitte United States).

AI algorithms excel at detecting fraudulent activities by identifying unusual patterns and behaviours. This capability is critical for fintech companies to build and maintain customer trust (FDS Reports).

Machine learning (ML) models can analyse customer data to offer personalised financial products and services. This personalisation helps fintech companies meet the specific needs of their customers, driving engagement and growth (FDS Reports).

AI can help fintech companies navigate the complex regulatory landscape by ensuring compliance with laws and regulations. AI systems can monitor transactions and flag potential compliance issues in real time, reducing the risk of regulatory fines.

Reasons for a Fintech Company to Invest in AI and Machine Learning
Case studies
Customer
Product for banking
Industry
Finance
Scale
Suitable
Result
Faster credit processing, improved data accuracy and seamless integration.

Challenge:

The AMCAA is an AI-driven solution customised for the financial sector to transform credit application processing. At its core is the Scoring Module, a precise tool dedicated to swiftly and accurately evaluating creditworthiness. Central to this module is a finely tuned machine-learning engine that accommodates emerging patterns in credit behaviour.

Solution:

AMCAA provides immediate insights for swift and informed credit decisions, offering a competitive edge. It adapts to institutions of any size, handling large data volumes efficiently without compromising speed. The highly precise Scoring Module analyses customer information to preemptively foresee and project potential risks. AMCAA is available for on-site deployment and as a Platform as a Service (PaaS), granting flexibility in deployment methods to align with your business model.

Result:

The AMCAA integrates smoothly into existing systems, connecting seamlessly with APIs to CRM and ERP infrastructures. This integration ensures uninterrupted workflows, enhances data accuracy, and reduces manual errors. Financial institutions benefit from faster credit application processing, improved customer satisfaction, and proactive risk management. A move that drives operational excellence and secures a competitive edge in the market.

Customer
International Bank
Industry
Financial Services
Scale
5000+
Results
  1. Flexible, scalable architecture based on open-source software
  2. Provided access to enterprise data and events for business applications and users

Challenge:

Set up a multifunctional hub for consolidating, processing, and displaying data alongside secure real-time enterprise data exchange. The architecture needed to be scalable for continuous real-time data exchange, operating 24/7, handling approximately 2-3 million events per day and up to 200 events per second.

Solution:

The solution featured real-time message exchange and trigger-driven push notifications, enhancing customer interactions and engagement. Instant communication provided extra services and updates from open databases and registries. The architecture enabled economical storage of archived data while processing event streams simultaneously, ensuring accessibility to diverse business applications. It addressed security and data integrity demands, guaranteeing compliant data access for end-users. EDH facilitated the gathering and analysis of data from various sources, which is crucial for comprehensive analysis. Using tools like Apache Hadoop, Apache Spark, Hive, Flink, and NiFi, Dataslab EDH offered robust functionalities for processing big data. This solution accommodated expanding enterprise requirements in data analysis, delivering scalable data processing and adaptable integration for historical data archives and real-time streaming data. Dataslab EDH provided extensive tools for establishing a subsystem to monitor key performance indicators and produce reports, assisting in data-driven decision-making.

Result:

The EDH integrated flawlessly into the bank's infrastructure, enabling real-time data processing and secure data exchange. Notably, this integration improved operational efficiency, data accuracy, and customer service.
As a result, the bank benefited from enhanced data analysis capabilities, allowing for more informed decision-making and strategic planning. The scalable architecture ensured the system could grow with the bank's needs, maintaining performance and reliability as data volumes increased. This state-of-the-art implementation improved compliance, security, and overall operational excellence.

Customer
International Bank
Industry
Financial Services
Scale
≥500 ATMs, ≥1000 employees
Results
  1. Reduction the amount of allocated funds up to 30%
  2. Cash-back reduction up to 40%
  3. Decreased ATM out-of-cash downtimes up to 0.2%

Challenge:

The organisation aimed to decrease the expenses linked with the provisioning cash machines.

Solution:

Our machine learning model utilised real-time daily data of ATM cash withdrawals for subsequent data analysis:

  • Data evaluation, setting requirements and success criteria, data loading, depersonalisation, and data enrichment; experiment procedure agreements.
  • Research object segmentation; training, testing, and evaluating the quality of the model.
  • Automated data loading or model deployment in the customer's environments; continuous quality monitoring.
  • Technical maintenance of the model and optimisation of new data inputs.

Result:

The implementation led to a highly accurate automated cash demand prediction, resulting in notable reductions in operational costs, such as:

  • Decreasing fund allocation by as much as 30%.
  • Cutting cashback by up to 40%.
  • Minimising out-of-cash downtime to as little as 0.2%.
Customer
Bank
Industry
Financial Services
Scale
5000+ employees
Results
  1. Cost-effective scaling of data storage capac-ities with ROI > 500%
  2. Costs reduction for data preparation and publication for up to 75%

Challenge:

The organisation faced data storage expenses and processing efficiency challenges.

Solution:

The proposed solution involved leveraging data virtualisation and migrating infrequently accessed data along with certain ETL processes to the Hadoop platform. The usage of such data resulted in the following:

  • Decreased ETL processing load.
  • Reduced data volumes within the Enterprise Data Warehouse (EDW).
  • Improved data accessibility for business intelligence (BI) and analytics purposes.

Result:

The ROI saw a remarkable surge of 200%, accompanied by a substantial cost reduction of up to 75% in data organisation and provisioning.

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