How AI will revolutionise the business finance sector
Last year, a study showed that business owners across the UK require, on average, an extra four hours per day to complete admin tasks, such as chasing invoices – a task critical for ensuring the smooth running and cash flow of the business.
But with continued introductions of automated technologies, it has the potential to revolutionise the way businesses can access capital solutions.
Matthew Shepherd, chief commercial officer at Skipton Business Finance believes such Artificial Intelligence could be the answer to faster funding and smarter finance decisions for both SMEs and large enterprises, as well as freeing up crucial time for business leaders.
Unleashing business efficiency and productivity through automation
Traditionally, the process of applying for and receiving business capital requires an in-depth, manual look at the finances, credit history and background of the business, but new advancements in technology, such as automation is speeding up this process.
Credit scoring
AI algorithms have the capability to quickly review a borrower’s background information, meaning a funding decision can be made in a matter of seconds.
Processing of documents
AI powered tools can quickly scan documents to ensure key components are included. For example, workflow processes and identity checks.
Data extraction
A key part of companies accessing funding often means the manual process of reviewing invoices and picking out key dates and financial elements that are included, while AI technologies could extract this data without the need to worry about potential mistakes made from manual data entry.
Enhanced risk management through AI- powered insights
AI could play a huge role in the risk management of finance decisions. This includes:
Fraud detection
Machine learning techniques quickly can identify fraudulent activity by using data patterns and algorithms that could flag up potential fraud.
Predictive analytics
Predictive analytics, a process that predicts future trends within data could help predict if, and when a vendor could potentially delay or default on a payment. This allows financers to make better informed decisions when it comes to individual risk assessment.
Personalised credit lines
Credit lines offer a more flexible funding solution for businesses and works by lending money as and when it is needed. AI technology could improve this type of funding, making it even more flexible by predicting when a lender may need funding based on real-time business performance monitoring.
To Summarise
Artificial Intelligence creates a huge opportunity for companies to achieve faster funding, and as a result, improved customer service.
AI should also be seen as a tool, and not a complete replacement for human ability and knowledge within the business finance sector.
For Skipton Business Finance, an ideal scenario would involve adopting AI to help tackle the heavy-lifting and time consuming tasks involved with funding, experienced staff use their skills to help make the best strategic funding decisions for the business.
