Top 5 Ways on How Artificial Intelligence Improves FinTech
Innovations boost the financial industry with the help of Artificial Intelligence and Machine Learning.
Markets and Markets research considers that the global AI in the FinTech market will grow to 7,305 million by 2025.
It’s common to use Artificial Intelligence in various FinTech operations these days. Developers create a lot of hardware and software solutions to improve the financial industry.
So, let's discuss the ways how AI changes FinTech and how the business can benefit from it.
Artificial Intelligence in FinTech: Top Five Use Cases
AI is used in various fields of the financial industry. Below we’ll discuss the top five reasons to integrate Artificial Intelligence into your financial business.
Use Case#1. Better Customer Services
People tend to communicate with customer support via phone or online chat. However, workers in customer support are real people that can get tired and make mistakes. Also, they can work 24/7 and give instant answers. Artificial Intelligence allows creating chatbots and robo-advisors. They offer customers improved feedback without delays. It’s high time to single out the details of each option.
Chatbots are available permanently, so that they can offer qualified customer support without delays. How can chatbots also improve FinTech?
- They can notify customers of any changes.
- Manage their account upon request.
- Consider users' complaints.
- Provide users with required data.
- Offer solutions for users’ problems.
- Chatbots tend to increase customer's trust.
Robo-advisors are quite similar to chatbots, but they focus on the FinTech industry. Robo-advisors can manage a bunch of different tasks. For example, they can assess investors’ tendency to risk, offering the best variants.
Additionally, robo-advisors help invest money wisely. Professional pieces of advice are quite expensive. But robo-advisors can assess all the pitfalls.
Use Case #2. Fraud Predication
Fraud prevention is significant for the financial industry. AI assists in solving a bunch of fraud issues.
Let’s single out the top three cases.
- The AI-based system can memorize possible fraud cases and identify a lot of hidden ways of fraud.
- The system works permanently, so that you can get instant results.
- Artificial Intelligence learns from users and their behavior. So, it’s easier to predict frauds when the users’ actions contradict standard behavior.
AI is quite useful for Fintech. This powerful technology provides opportunities to improve security issues, reducing fraud.
Moreover, these solutions allow building trustful relationships with your clients. People want to stay safe in the case of financial operations.
Use Case #3. Risk Assessment
Landing can be risky. Artificial Intelligence tends to change this situation. This technology analyses the customers’ personal information to find out the possible risks.
Let’s consider an example.
Machine learning can do visual identification and verification.
What does it mean?
Visual identification assists P2P lending in verifying users’ identities. The technology can confirm an ID card. It allows ensuring that this is the right person.
Additionally, a lot of cloud-based financial software tends to modify financial processes and make them safer.
Use Case #4. Better Insurance Recommendations
One more way to use AI in the financial industry is insurance. It’s possible to integrate AI into everyday tasks, saving time.
For example, Artificial Intelligence can analyze the damage level in the case of a car crash or other accident.
AI works faster in comparison to human workers. It can process a bunch of tasks at the same time. As a result, it brings a lot of benefits to the insurance sector.
This technology is also suitable for accident prevention. AI can analyze all the factors and notify about possible malfunctions or dangers.
Use Case #5. Better Analysis of Investments
Hedge funds mean private investment funds that cooperate with rich professional investors. AI can process an enormous amount of information and increase the quality of investment analysis.
Artificial Intelligence helps create hedge funds that manage all stock exchange operations without human intervention.
AI-based algorithms tend to predict market changes and analyze market prices.
To sum up, AI can be quite profitable for the FinTech industry.
This powerful technology brings a bunch of innovations, improving all the parts of the financial sector.
Vitaly Kuprenko is a technical writer at Cleveroad. It’s a fintech software development company in Ukraine. He enjoys telling about tech innovations and digital ways to boost businesses.
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