ARTIFICIAL INTELLIGENCE AND FINTECH-Artificial intelligence (AI) in fintech firms will bring in a new series of opportunities, like personalized wealth management, automated customer support, intelligent financial assistance, fraud detection, accurate decision-making, and so much more.
Most of us think fintech is a relatively new concept. Still remember the days when we had to go to financial advisors for gaining insights on the best investment plan? However, contrary to popular belief, the fintech sector has an old and lengthy history. The history dates back to the 1950s. Since then, the sector has seen unceasing evolution, development, and revolution, which most of us just fail to appreciate. So, here’s a quick recap. In the 1950s, the inception of credit cards relieved people’s stress of carrying currency with them anywhere they go. The next decade saw the birth of Automatic Teller Machines (ATMs). People were able to withdraw or deposit money without visiting or interacting with banks. Then in the 1980s, electronic stock trading was developed. Sellers and buyers who had to meet in person for negotiating stocks were at the positive side. With electronic stock trading, sellers and buyers were able to carry out their trading practices on a single platform. Later in the 1980s, sophisticated record-keeping platforms were developed, which changed the way people stored their data. Also, the concept of online banking was introduced in the very same decade. In the 1990s, the sector saw the rise of websites for internet banking. Thereafter, the millennials era was filled with back-to-back innovation like mobile payments, new-loan algorithms, investing services, and just so much more. And today, fintech has established its place in the digital space of fast-changing technological trends.
As the last 68 years paint a picture of persistent growth, the sector still sees breakthrough technological applications. One such transformation is because of AI. AI brings in incredible possibilities, ranging from customized services to automated customer support to high-level security to cyber threat mitigation and much more.
The role of AI in Fintech
AI in fintech will help firms to streamline customer service, automate manual jobs, detect frauds. All of this will in turn increase accuracy, boost productivity, and increase a company’s bottom line.
It’s true that technologies bring in high-level convenience, allowing us to make payments in just a few clicks. But unfortunately, this trend opens up a whole new host of security issues. Fraudsters get a fair chance to commit criminal activities. While such a situation will leave customers hugely disappointed, companies will also have to face financial losses. Did you know, as per the report from LexisNexis, “every dollar of fraud costs organizations nearly 2 ½ times more than the actual loss itself.”
Fortunately, AI can solve this issue. We live in a data-driven world. Each minute, each second, data is generated. Data, if interpreted correctly, can uncover potential insights on how fraudsters carry out illegal activities. Also, data can find whether a user is trying to abuse the network or not. Fintechs can collect relevant data, build AI tools, and develop robust security systems. More the data, more the accuracy of the result that the AI tool gives. The fintech firms can collect more relevant data to make the AI tool smarter and intelligent, and give better decisions on security issues.
With customer expectations going sky high, there is a need for a platform that offers highly customized, quick, and secure solutions. How about having a personal virtual assistant, that is just one message away from us to offering the required financial assistance? Chatbots can fulfill this demand!