Fintech is a buzzword in the modern world, which essentially means “financial technology”. According to the prediction of Autonomous Research, AI (Artificial Intelligence) technologies will allow financial institutions to reduce their operational costs by 22%, by 2030. And a study by research group Forrester found that around 50% of financial services and insurance companies already use AI globally. And the number is expected to grow with newer technology advancements. AI and Machine Learning are truly efficient tools in the financial sector. In this blog, we’ll get to the details on how they actually help fintech and the benefits they can bring
Bottom Line: AI & machine learning will improve Fintech in 2020 by increasing the accuracy and personalization of payment, lending, and insurance services while also helping to discover new client pools.
AI (artificial intelligence) and ML (Machine Learning) make use of modern technology to innovate traditional financial services and solutions. Both AI and ML are becoming the trends in Fintech, owing to their exceptional capability to allow efficient processes, better financial analysis and customer engagement.
How can AI and Machine Learning Help Fintech in 2021
Chatbot & Automated Customer Support
Instead of a traditional call center that sometimes gets bad ratings, why not make use of customer-facing systems such as AI interfaces and Chatbots?
Complete automation guarantees a better, safer experience, better customer service and customized solutions. AI can be a powerful tool that helps to automate the back office process and make it seamless for fintech companies.
Automation can greatly help Fintech companies to save time as well as money. Using AI and ML, the industry has ample opportunities for reducing human errors and improving customer support.
Smarter & Faster Decision-making
Many financial sectors involve a critical decision. Whether it’s about the most suitable personal loan, or insurance package, leveraging AI can help to calculate all involving factors and make a decision that is data-driven and as accurate as can be.
Imagine a website or an app where you can enter data and get a personalized financial package, check out our case studies Get Assured & Personifi - 2 innovative fintech startups to learn more about these solutions. It actually creates a unique way for services consultation and management.
Machine learning analyzes the input infos in a blink of an eye and brings spotless outcomes that help officials to save time, cut costs and reduce workload. Therefore, it empowers fintech companies to solve specific problems much faster and more effectively.
Fraud Detection & Prevention
One big problem that financial institutes such as banks & insurance companies have always had a tough time facing, is fraudulence. And with much internal training, fraud prevention materials, they still expect a huge sum of loss annually due to fraud cases.
Now, with AI in the picture, fraudulent transactions are to be finally totally defeated. Investing in AI and machine learning anti-fraud solutions is a smart move because AI is strong enough to react in real-time and can quickly analyse transaction data to detect questionable patterns or malice behaviours & processes. The fintech companies such as us - Golden Owl Consulting - can help build secured financial software and apps using these technologies. You can check out our blockchain wallet project with Mosendo for example. We work with them to build a secure cryptocurrency wallet.
Better Trading and Wealth Management
Owing to their potential benefits, automation and machine learning are increasingly used in the Fintech industry. In the case of smart wallets, they learn and monitor user’s behaviour and activities, so that appropriate information can be provided for their expenses.
Fintech firms are working with development and technology leaders to bring new concepts that are effective and personalized. Artificial intelligence, machine learning, and allied technologies are playing a vital role in financial organizations to improve skills, customer satisfaction, and reduce costs.
Check out innovative ideas like Find A Wealth Manager - a client who worked with us on technologies that finds the best Private banks and Investment Managers impartially, factually and in just 3 minutes.
Client Categorization - Risk profile
A person’s financial situation is transparent in their risk profile. And categorising clients based on this is a great way to assess their financial needs & offer the most suitable services & products.
Artificial intelligence tools show potential capability in it to automate the process of profiling clients, based on their risk profile. This profiling work helps experts give product recommendations to customers in an appropriate and automated way. Thus, replacing years of human searching work in dozens of document rooms. All of this marvelous process can be done in just under a millisecond.
Predictive Analytics
Predictive analytics is another competitive advantage of using AI tools in the financial sector. It is helpful to improve sales, optimize resource use, and enhance operational efficiency.
From the beginning, all customers' datas are digitized, stored and sorted so that upsell opportunities are well thought of in appropriate times and brings about significant economic impacts. For example, if you are selling a car-loan offer - getting information on recent high school graduates’ parents are going to be effective in boosting sales.
To conclude,
AI-based financial solutions are focused on the crucial needs of the modern financial sector such as better customer experience, cost-effectiveness, real-time data integration, and enhanced security. Adoption of AI and its applications enables the industry to create a better, engaging financial environment for fintech companies.
The use of AI and ML has facilitated financial and banking operations. With the help of such smart developments, fintech companies are delivering tailored products and services as per the needs of the evolving market.
With AI and ML, a huge amount of data can be analyzed and optimized for better applications. Hence fintech is the right industry where there is a great future of AI and machine learning innovations
