There is so much written about financial bots:
- They help to trade on stock exchanges, processing big data at high speeds
- Traders use their algorithms to minimize the risks of losses and maximize profits
- They help to track investments in blockchain and automatically place orders on crypto-currency stock exchanges.
Smart financial bots are already capable of performing these and many other functions, greatly facilitating the implementation of the tasks assigned to companies.
Functionality of bots
Consulting with the bot developer, the financial company must determine what exactly its new bot will perform, describing the desirable logic of its future behavior.
For example, the company must decide whether the bot will be developed on self-learning AI algorithms, or if it will strictly carry out the programmed set of actions needed by the customer, or something else. This means that the financial company needs to decide for itself what the program will perform.
And how to do this is already the task of the architect and other bot developers. There are many options:
- Display of exchange rates
- Data collection and monitoring for financial analytics
- Analysis of collected data
- Automation of financial tasks at the request of the client
- Performing certain tasks on stock exchanges
- Automation of banking operations
- Communication with customers, etc.
Financial bots can bring great benefits, expanding the capabilities of the financial institution, but you need to be aware of the risks.
The main risks of using bots are:
1. The most important risk is a bot with an incomplete or oversimplified architecture that could not or did not perform the task well, thereby resulting in significant losses for the financial company.
This situation can occur if the company bought or ordered the development of a bot with limited functionality, but imposed impossible tasks on it, which led to financial errors and a hit to their reputation.
2. This risk arises when the company hired cheap developers who hid that they do not have a team with the necessary qualifications to create a quality bot according to the customer’s wishes.
This case is more common because when deferring to inexperienced developers, there is a risk of obtaining a non-competitive product compared to those that are already on the market and have many positive reviews, a niche, a proven reputation, and quality support.
3. A company’s attempt to create its own bot using free platforms without having the appropriate specialists to perform this task adequately.
A bot created with security holes and other errors, especially for automation related to money transfers, can inadvertently send money to the attackers who hacked it.
Realizing these external and internal risks, the company should be very careful to choose developers who can write a quality bot program with the necessary functionality. The digital economy is no longer possible without the use of financial bots. Therefore, many companies, analyzing the pros and cons, choose to improve the quality of service, the result, and acceleration of their business processes, which is undoubtedly a capability of modern smart financial bots.
Author: ASD team