Artificial intelligence is having a significant impact on nearly every industry. More and more companies are using AI to automate processes at an increasing rate. Whether it’s site suggestions on our search engine or voice assistants such as Alexa or Siri, AI is having a growing impact on our day to day lives.
PWC predicts that AI could contribute up to $15.7 trillion to the global economy as soon as 2030. One industry that is set to greatly benefit is FinTech. Through integrating AI into its processes and functions it can make processes more efficient, provide better financial analysis and potentially lower costs.
Below we’ll look at three of the ways AI can improve FinTech and the benefits AI technologies can bring to the industry.
Automating customer relationship management.
More FinTechs will continue to turn to chatbots and voice user interface to provide real-time, relevant responses to customers. Utilising artificial intelligence and machine learning will help to speed up inquiries and resolve potential disputes.
There has been a significant increase in consumer expectations for swift customer support in recent years. In fact, over 80% of customers expect a response within 24 hours. Automated customer relationship management systems will not only help provide a better and safer solution, but will help accelerate the speed in which it takes to resolve a customer’s enquiry.
These systems will also help FinTechs in reducing the cost of staffing and make back office processes more seamless.
Although the rise in technology has helped deliver more convenience and improved speed for users, it has also caused an increase in online fraud. As a result, more FinTech companies will seek to invest in analytical tools that employ AI to learn and follow user behaviour, in order to find patterns that can identify potential fraud attempts.
Due to the huge amount of data AI and ML can analyse, it can detect fraud more efficiently than humans. These fraud protection systems will be key to better protect consumers. This protection is why FinTech companies and financial institutions are heavily investing in this area.
Improving Trading and Investing
AI is continually taking on a larger role in investment decisions, and in many cases, it appears to be doing a better job than humans. Services such as Robo-Advisors and AI Trading are growing in popularity as they help make investing more accessible, and at a lower cost.
FinTech businesses are constantly seeking to develop and integrate AI technology. From executing trades to managing portfolios, AI can be used in a variety of ways. Utilising AI is a lot more efficient and saves a lot of time compared to manually trading and investing. It also helps to remove human error, which is hugely beneficial, as many investors can be prone to making mistakes that lose them money.
AI investing is still in its infancy, but looks sure to have a big impact on the finance industry.
AI will be crucial for FinTech
Artificial intelligence and machine learning will be crucial for the FinTech sector. The increasingly complex tasks it can handle will allow FinTechs to significantly improve the service they offer to customers. AI looks set to bode well for the industry, and as innovations continue to develop, it’s only exciting times ahead.