Artificial Intelligence (AI) and Machine Learning (ML) appeared not so long ago, but have already become indispensable technologies in the modern world. They penetrate various spheres of life, change the economy and increase the efficiency of companies. The fintech industry is no exception, actively adopting the latest technologies to optimise its processes and improve the quality of services provided.
In Southeast Asia, where the fintech industry continues to grow rapidly, the adoption of AI and ML is especially strong. With the help of new technologies, companies can provide more convenient and affordable services, improve the speed of processing requests and increase their level of security. This not only makes fintech companies more competitive but also provides new opportunities for business development.
The most active phase of AI and ML adoption in Southeast Asia’s fintech has already passed, from 2016 to 2019. The current state most resembles a “small respite” or “reaching a plateau”. However, this does not mean that the development of AI and ML technologies in SEA fintech has completely ceased.
On the contrary, more and more companies are beginning to realise the potential of this tech and are starting to implement it in their business processes in parallel with the general development of financial technologies.
AI and ML benefit Southeast Asia’s fintech
A recent study by Robocash Group analysts claims that the penetration of AI and ML technologies in SEA fintech companies is steadily growing, reaching 3.1 per cent in 2022. In other words, 807 out of 26,105 fintech companies in Southeast Asia already feature AI and ML tools in their technology stack.
Process optimisation is one of the main purposes of applying AI and ML in fintech. Automation can greatly simplify routine operations such as document verification, data analysis, and more. It reduces the risk of errors and increases employee productivity.
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In addition, AI and ML are being used to bolster analytics and forecasting. Companies may rely on them to more accurately predict the behaviour of their customers, assess risks and make the most informed decisions. For example, banks and other financial services can use ML to analyse customer data and offer customised services and products that best suit their needs.
AI and ML are also widely used to improve payment processing and fight against fraud. Fintech companies use Machine Learning algorithms to quickly and accurately check transactions for fraud and improve data protection.
Finally, AI and ML are used to improve the user experience in general, including communication. For example, chatbots are used to automatically answer customer questions and provide real-time support. This allows fintech companies to better their customer service, reduce response time to inquiries and increase customer satisfaction.
Final thoughts
On the whole, AI and ML tech is an important tool for a company, allowing for more informed and balanced business decision-making. In the future, with the development of new technologies, it will become even more widespread and effective in fintech.
The fintech players in SEA are increasingly adopting AI and ML technologies in their business models and processes. However, it should be noted that these technologies are not a panacea and do not guarantee success itself. Companies must properly adapt them to their needs and models in order to get the maximum benefit from their use.
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