Artificial Intelligence in Financial Transactions


Believe it or not we all have made financial transactions in our lives and if you do not know what I’m talking about let me explain this concept before we go over artificial intelligence.

A financial transaction is an agreement between a buyer and a seller to exchange an asset for payment.

In mankind history, the first non-financial transactions have taken place since the very beginning. First, these transactions involved pure barter of goods, for example. Then cash or money was created to exchange goods, information or services. The first financial asset was created. Financial assets are and will be mainly cash, stocks, bonds, mutual funds, bank deposits and in the near future, cryptocurrencies like Bitcoin, once they get accepted by all central banks. 

Another way to understand financial transactions is by the change in the financial status of the buyer or seller. Buyers and sellers can be people or companies.

Financial transactions might involve one or more financial asset to exchange for goods or for other financial assets. Some examples of financial transactions are purchases, loans, mortgages, bank account, credit or debit cards. Exitus Capital grants credits and loans for small companies, for example – some propaganda here -.

Now let’s talk about artificial intelligence. You probably have seen some science fiction movies like AI by Steven Spielberg or Ex Machina by Alex Garland. But what does artificial intelligence imply? 

According to Professor Jane Binner who works at the Department of Finance at Birmingham Business School, artificial intelligence is a consortium of data-driven methodologies which includes artificial neural networks, genetic algorithms, fuzzy logic, probabilistic belief networks and machine learning as its components.

The impact of these methodologies can be seen in many areas such as the economic and financial fields. The future is now and we can witness that many financial transactions are controlled by robots or algorithms already. In the following graphs it is shown the increase of algorithmic activity in foreign exchange markets, for instance, and the electronification of these transactions. It seems that AI applications in finance services and in the economy in general are now a reality.

Source: “Monitoring of fast-paced electronic markets”. Imène Rahmouni-Rousseau
(Bank of France) and Rohan Churm (Bank of England). September 2008, page 6.


-“Applications of Artificial Intelligence in Finance and Economics” (Advances in Econometrics, Vol. 19), Binner, J., Kendall, G. and Chen, S. (Ed, Emerald Group Publishing Limited.), Bingley, pp. IX-XIII. 2004.

- “La criminalité financière en images”. Jean de Maillard, Un monde sans loi :, 1999, Éditions Stock, ISBN 2-234-04827-3, page 28.

-“Monitoring of fast-paced electronic markets”. Imène Rahmouni-Rousseau (Bank of France) and Rohan Churm (Bank of England). September 2008, page 6.


Written by M.B.A. Francisco Montalvo