Businesses, users and investors are all looking forward to using AI in fintech industry. AI can be used effectively to eliminate unnecessary costs, earn more and make money more conveniently. Five ways in which AI is used by fintech companies is listed below.
Security and Fraud Detection
AI and ML provide many digital security and anti-money laundering solutions. Algorithms can detect suspicious activity, and even better, they can notify users. They can monitor 24/7 and this will take a huge burden off the security teams.
Fraud is one of the biggest headaches of fintech companies these days. Fraud’s effects impact customer experience and companies’ reputation in addition to financial losses. AI provides a solution, as it allows blocking a user’s request or even accessing their account if the system detects potentially fraudulent activity.
Asset Management
AI gives personalized financial advice based on spending patterns and financial conditions. So, companies can save a lot of money spent on workforce by utilizing AI facilities to the fullest. Users will also benefit from significantly reduced costs, processing time, and service charges. AI-driven smart wallets generate real-time visual statistics by analyzing the user behavior patterns.
Analyzing User Behavior
AI in fintech integrates various AI and ML techniques to predict users’ behavior. These AI APIs give detailed insights of their data to the users. For example, a user requests data on his expenses in the past one month. AI can predict the follow-up request and provide the information in the same response.
Improved Customer Experience
Chatbots powered by AI can tackle the most frequent and most tackled user issues, thereby reducing the workload on call centers. These chatbots use sentiment analysis to understand the customer’s experience with the service/application and tackle the shortfalls on its own. Chatbots may also help banking institutions in growing their customer networks.
Financial Forecasts
AI has the ability to identify, analyze and adjust changes in data patterns on its own. Moreover, even if data quality is far from perfect, artificial intelligence in fintech can still come up with valuable insights into the exchange rates, investments, short- or long-term trends predictions.
