Cloud-Based Artificial Intelligence for Modern Financial Risk Management
DOI:
https://doi.org/10.22399/ijcesen.5191Keywords:
Cloud-native architecture, Financial risk management, Real-time fraud detection, Predictive credit analytics, regulatory compliance, AI governanceAbstract
Cloud computing and artificial intelligence are changing the way in which it works in financial risk management providing unprecedented powers of fraud detection, credit assessment and regulatory compliance. The financial institutions benefit from cloud-based AI architectures that can help them to improve operations, detect risk and manage costs, and process large amounts of data in real time. They may also be able to help researchers identify sophisticated fraud patterns with unprecedented accuracy, see possible credit default months earlier than most of the traditional tools and provide financial services to previously uninsured citizens with better insights from data. Containerization, micro services and orchestration provide scale with which cloud-native AI systems can be configured to accommodate complex analytical models that are far beyond what is possible. Strong governance structures present significant challenges to reducing regulation compliance, modeling explanations, and data protection concerns. The advancement of these technologies should eventually influence the way in which financial risk management is conducted, and it will bring more mature financial systems that are able to respond to new threats and more specifically and effective in providing services to other populations.
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