NLP Natural Language Processing Use Cases in Finance

The working of NLP is quite similar to any other Artificial Intelligence model. Therefore, NLP requires a set of clean and pre-processed data organized in a way for an AI model to understand. This part of processing and analysis of data is known as Tokenization, and it includes dividing natural language inputs into tiny semantic units called tokens. For example, in the medical industry used for dictation, clinical documentation, clinical trial matching, etc. NLP assists the AI to become a better functioning computer that behaves more efficiently than a human but simultaneously like a human.

  • This matters when you are dealing with the product, service, or perception of the brand.
  • Manual text summarization is often very expensive and time-consuming and a tedious job.
  • First of all, smart solutions will process free unstructured data, find relevant information there.
  • Natural processing language applies techniques to extract patterns in textual data from large datasets.
  • To find valuable information hidden in reports or other pieces of content.

Thus, there is no hesitation in saying that natural language processing and machine learning have become the tools of choice for financial analysts, traders, and portfolio managers. NLP, for example, sifts through social media data and finds conversations that might help them improve their services. Major retail banks like HDFC Bank and ICICI Bank deploy powerful customer engagement tools like chatbots to understand client intention.

Comprehensive Guide to Top 30 NLP Use Cases & Applications

In this case, NLP is used for the initial scraping of CVs according to set criteria. During the interview, the CI determines whether the candidate is compliant with the position or not. All this and more can be extracted with NLP algorithms and subsequently be presented in a bigger context. Sentiment analysis can affect the decision-making process and help to react and adjust to the state of things. Sentiment analysis can augment with the study of product reviews and customer support feedback.

Much of this data is unstructured and composed of speech, videos, text, images, and more. Using Natural Language Processing, we use machines by making them understand how human language works. Basically, we use text data and make computers analyze and process large quantities of such data. There is high demand for such data in today’s world as such data contains a vast amount of information and insight into business operations and profitability. NLP can be applied successfully each time there is a document to read, understand, file, and with relevant information to extract.

NLP use cases

Additionally, the model is trained on an annotated data set in which the entities are manually identified. The most comprehensive publicly accessible database in the English language is the Groningen Meaning Bank . After successful training, the model can correctly determine previously unknown words from the context resulting from the sentence. Thus, the model recognizes that prepositions like “in, at, after…” are followed by a location, but more complex contexts are also used to determine the entity. Let’s say you are a call centre and have collected a large database of call transcripts in text form (i.e. unstructured data) recorded from customer complaints.

Sentiment analysis

All interactions of AI solutions with the clients are being recorded and stored. Specialists of financial institutions can analyze them for better decision-making. As there is so much textual information in the finance sector, financial entities resort to software based on natural language processing to better process it. Innovations and technology trends eventually find a way to improve healthcare and medical practices. The applications and potential of Artificial Intelligence might be a game-changer for the healthcare industry. AI and its branches can help the medical & healthcare industry, from researching diseases to executing treatments.

Natural Language Processing was implemented in order to analyze free text reports from the last 24 hours, and predict the patient’s risk of hospital readmission and mortality over the time period of 30 days. At the end of the successful experiment, the algorithm performed better than expected and the model’s overall positive predictive value stood at 97.45%. It can gather and evaluate thousands of reviews on healthcare each day on 3rd party listings. In addition, NLP finds out PHI or Protected Health Information, profanity or further data related to HIPPA compliance. It can even rapidly examine human sentiments along with the context of their usage. In many ways, the NLP is altering clinical trial matching; it even had the possible chances to help clinicians with the complicatedness of phenotyping patients for examination.

NLP use cases

For instance second hand car dealer Cars24, reduced its call center cost 75% by automating FAQs with a chatbot that deployed on WhatsApp and mobile app of the company. A single NLP model can deliver way more consistently than a team of human analysts, each of whom may decipher aspects of text slightly differently. Assess the tone of your content, spot patterns, and make data-driven decisions. In today’s age of digitization, companies are betting big on Natural Language Processing to up their finance game. Candidates may omit important information or downplay their qualifications in order to appear more qualified than they actually are. To give you an idea of the possibilities NLP opens up in the business context today, I will present five practical use cases and explain the solutions behind them in the following.

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Drug development is an integral part of the healthcare industry and is a time-consuming process. The healthcare industry can use NLP to analyze a variety of compounds and existing drugs to find insights for drug development. NLP can leverage all the unstructured text about the drugs from public sources, databases, and internal findings, providing actionable data for every stage of drug development. You might have heard this commonly “this call may be recorded for the training purposes” and wonder what that entails.

For example, when you search for “service disruption”, the system would then retrieve all calls with similar topics to “service disruption”. On the lower end, we have a smaller vocabulary , a less diverse grammar , and simpler concepts . This simpler end of language is populated by short, structured commands often specialized for a very particular use-case. For example, we might have natural dialogue filled with slang and jokes or technical government documents or elegant poetry.

Natural language processing and IBM Watson

In recent years, natural language processing algorithms have grown considerably more reliable, consistent, accurate, and scalable, providing financial decision-makers with a thorough grasp of the market. NLP is being used in the finance industry to significantly reduce mundane tasks, speed up deals, analyze risks, comprehend financial sentiment, and build portfolios while automating audits and accounting. Years of research and constant trial and error made natural language processing algorithms sophisticated enough to deliver the message across languages. Now you can easily present your company’s landing pages in several target languages without bending over backward. Customer support – the most basic use of conversational UI is also the most multi-faceted. Conversational customer support tells more about product use, emerging issues, and general sentiment.

The recorded calls are used for the NLP systems to learn from the database and provide improved and personalized services in the future. The automated systems direct customer calls to chatbots or service representatives who respond to customer requests using these NLP databases. This is a common NLP practice followed by every business that consists of digital telecommunications and customer service. Modern customers now expect smart assistants to understand contextual clues and make certain activities more manageable, such as ordering items, answering personal queries, and even responding humorously. All of this is possible with the NLP-based models backed up by AI that helps smart assistants to decode human speech. Down the line, Natural Language Processing and other ML tools will be the key to superior clinical decision support & patient health outcomes.

Natural Language Processing applications and techniques help analyze irregular data to identify sentiments, feedbacks, patterns, and other business-related insights. Digital enterprises use Natural Language Processing applications to ensure that modern technologies can interpret every single unstructured data released in their domain. Data development of natural language processing mining integration in health IT systems allows healthcare providers and hospitals to reduce subjectivity in decision-making and provide new useful medical knowledge. Healthcare centers can leverage NLP by improving patient interactions with the provider and the EHR. It will help increase awareness amongst patients and improve care quality.

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Language models

Digital and challenger banks rely more on NLP in cases where physical banks can utilize traditional means. For example, AI chatbots are the primary option for these banks, not human assistants. This means that developers can train and rather fast the army of NLP-based machines for a particular client or clients. For example, financial institutions can find all mentions of some policy, regulation, or event with their financial impact as a context. In this case, the system will generate all mentions of the query phrase and highlight the mentions with financial impact. The companies utilize voice processing in smart means of voice communication.

Conversational banking can also help credit scoring where conversational AI tools analyze answers of customers to specific questions regarding their risk attitudes. To document clinical procedures and results, physicians dictate the processes to a voice recorder or a medical stenographer to be transcribed later to texts and input to the EMR and EHR systems. NLP can be used to analyze the voice records and convert them to text, in order to be fed to EMRs and patients’ records. Chatbots have numerous applications in different industries as they facilitate conversations with customers and automate various rule-based tasks, such as answering FAQs or making hotel reservations. NLP algorithms forecast and detect customer pain points, allowing banks to design policies and services to address these issues.

For this purpose, parameters such as intents, entities, and actions are passed. As a research topic that had already occupied linguists and computer scientists in the 1950s, NLP had a barely visible existence on the application side in the 20th century. The statistical approach, on the other hand, processes the text based on observed rules. This is a “descriptive” way of looking at language and computationally encodes what language is observed to be. It requires expert knowledge to develop the rules, little training data, and works well for simple texts with little variation. This is typically how students are taught foreign languages in a classroom setting, with grammatical rules presented systematically over time.

The automation of customer services is the most notable application of NLP in retail today. NLP is combined with a set of technologies like artificial voice and AI chatbots to provide services that range from cold calling to virtual assistants. Automated translation services such as Google Translate or DeepL leverage the power of NLP to understand and produce an accurate translation of global languages in text, or even voice formats.

In this article, you will learn how NLP applications solve various business problems through five practical examples, which ensured an increase in efficiency and innovation in their field of application. With the NLP and data analytics tools, financial entities can perform continuous auditing of accounts and transactions. In this way, management can feel more secure that they comply with accounting regulations and vet financial statements in a proper way. Royal Bank of Canada offers its clients a mobile application for voice money transfer. It is based on NLP, activated by voice, and can transfer money, or pay the bills.

Using NLP for CAC eliminates the need for professional coders to perform the medical coding procedure. NLP can help healthcare professionals with documentation needs to minimize their time on documentation and focus more on their crucial responsibilities. For example, NLP can summarize documents, find the key information, or convert an image into text to easily record electronically. NLP in healthcare facilities makes the information more accessible and understandable. Such thorough and useful information with AI and Big Data makes decision-making faster and more efficient for professionals.

The primary NLP-based interpretation machine was introduced during the 1950s by Georgetown and IBM, which could consequently translate 60 Russian sentences to English. Today, translation applications influence NLP and AI to comprehend and precisely translate worldwide dialects in both text and voice designs. As more Business Intelligence vendors have started utilizing natural language interfaces to data visualization, the Natural Language Processing technology is integrated into data analysis workflow.

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