ARTIFICIAL intelligence (AI) could be the future of financial technology (fintech) in the Philippines, said AI decision-making platform Provenir.
According to Robocash Group analysts, the Philippine fintech market assessment has seen the entire market grow by 224 percent, from $3.4 billion in 2016 to $11 billion in 2021. By 2024, the Philippine fintech industry could increase from P11 billion to P44 billion.
Furthermore, the global fintech market is expected to reach $332.5 billion by 2028, according to the forecast of Vantage Market Research.
With this forecast, it is expected that companies will offer financial services to customers to generate alternative revenue streams, customize the customer journey and improve the overall user experience.
This was also shared by participants in the forum entitled: “FinTech: A people’s revolution in the Philippines.”
“The pandemic and its restrictions caused a huge generational surge in the emergence of digital services and has required businesses to adapt at a very high speed,” said Bharath Vellore, Provenir’s managing director for Asia Pacific.
He also predicted that the future of fintech is the conversion of every business into the fintech sphere while using AI as a guide.
“AI in fintech is opening the doors for digitization of credit-rich verticals and diversifying products and opportunities. Agility and speed in personalization play crucial roles in providing personalized offers to customers, helping hyper-growth,” he said.
However, fintech is not limited to digital banks and neobanks, but also embedded and open financial services that are becoming more and more widespread.
“With so much innovation happening in the fintech space, the question arises as to how we can be more responsible and secure in our digital transactions for both businesses and consumers,” said World Fintech Festival PH co-founder Amor Maclang.
AI can also transform large amounts of data into valuable insights, such as consumer patterns, that help with fraud detection and business risk decisions. In addition, AI fraud detection is fast, efficient and effective.
“AI also helps organizations discover new patterns in data that enable them to serve a much wider base of people,” Vellore added. “Additionally, AI can reduce transaction costs, improve data management and increase employee productivity.”