AI in FinTech: Managing the Finance of the Future

FinTech is adopting AI, thanks to the abundance of available data and the increased computing power that is affordable. Artificial intelligence offers a number of benefits in the financial sector, including improving productivity, increasing profits and improving product quality.

Most FinTechs deploy AI effectively across various financial streams such as cyber security and customer service. Moreover, AI is changing the way online banking works. Chatbot’s national language processing and emotional intelligence, for example, prove to be a cost-effective alternative. Additionally, as AI interprets more data, they rely less on human intervention.

• Successful banking-related chatbot interactions will grow between 2019 and 2023.
• More than 826 million hours will be saved by chatbot interactions by 2023.
• More than 70% of chatbot interactions will happen via mobile banking applications.

As the demand for online banking and payment services continues to increase, and the use of AI has become a key to sustainability and growth in FinTech. Here are some ways AI trends will manage finances in the future.

From loan application fraud to false insurance claims, deceptive financial activities have increased in recent years. Also, fraudulent transactions can cost businesses millions of dollars.

In addition to dealing with financial losses, most companies must be good at dealing with negative customer experiences that can damage the company’s reputation.

AI in business and finance venture solutions use machine learning solutions to target fraud and cyber security. With large financial operations, it is almost impossible to review every transaction for suspicious activity.

AI systems help monitor banking transactions in real time, while AI algorithms can help detect common patterns with greater accuracy.

AI has significantly increased data security services in the FinTech sector. Moreover, most FinTech and banks provide their support to customers via chatbots enabled by AI.

In addition, the AI ​​models offer various solutions that improve – such as password protection and gaining additional access to the system. In addition, AI is capable of improving financial security through voice, face and finger recognition.

The extra AI layer makes it difficult to bypass traditional passwords. In the future, AI-powered security solutions will completely change the future of passwords.

FinTechs are at risk as they handle millions of currencies, so AI will ensure that the system has the highest level of security.

AI has made significant changes in customer service for FinTechs and banks. Customers are getting used to receiving faster responses from the banks. Additionally, since financial solutions must be available at all times to ease major concerns, AI plays a major role here.

Various AI-powered chatbots and virtual interfaces help to minimize the workload by clarifying the most common user problems. Also, it freezes teams’ time to focus on more complicated user requests.

AI can help improve FinTech customer service with complex sentiment analysis that focuses more on the overall customer experience. In addition, communication between customers and FinTech becomes easier with an AI-based system.

FinTechs and banks have millions of customers. And if the bank keeps an eye on each customer for personal service, it can be a difficult task. Also, customization can make customers trust your business more.

When customers download the banking application on their mobile, the AI ​​algorithm collects all the customer data. Based on the collected data – the banks provide personalized recommendations and pre-approved products.

In addition, AI banking apps can help customers track individual financial goals. Some AI models also analyze speech and voice characteristics to distinguish real patterns and create meaningful insights.

By adopting AI-powered resources and apps, FinTechs can save labor costs and tons of dollars. AI automation takes over the manual process, thus saving time. AI chatbots handle all the minor enquiries, reducing the workload on the customer service team.

Also, with the money saved on the AI ​​chatbot systems, some banks can offer attractive deals to customers. In short, data-driven AI improves capital optimization.

AI – much like Machine Learning, helps execute stock trades using the pre-programmed instructions that analyze the data for trading. In addition, AI has transformed traditional data points by crunching millions of data points in real time.

It helps provide insights that the statistical model is unable to detect. Due to AI in FinTech, customers can trade stocks through mobile apps in real time.

Thanks to AI and ML automation, loans are approved faster. Specialized AI apps increase the cost of approving loan applications by performing real-time analytics that help you make informed decisions.

Different AI models go through verification checks and evaluate the creditworthiness of a person. Also, it helps optimize the automation of loan approval. But most importantly, AI uses various data points to create the exact financial position of customers.

AI optimizes processes across the board and performs repetitive tasks efficiently, performing complex tasks with valuable insights. As a result, it improves the customer experience, saves time and empowers businesses to make meaningful decisions.

The AI ​​revolution in finance is capable of reducing relevant business risks by ensuring complete transparency and trust.

Roberto Sato is Executive Vice President and Chief Information Officer at Global Electronic Technology, based in Torrance, California. He is passionate about helping people understand content through his easy-to-digest writing. Live simply, give generously!