AI is the buzzword of the day. Recently, I became curious about how precisely AI affects the fast-paced fintech industry. From the perspective of the CEO of a leading tech company in Vietnam, this question sent me on a mission of discovery that has led me to uncover some amazing insights, which I can’t wait to share with you in this article.
In my opinion, the combination of fintech with AI is more than simply a fad; it’s a revolutionary development. It’s rewriting the rules, reinventing finance, and opening up new avenues for efficiency, creativity, and opportunity for consumers and corporations.
Overview of AI in the fintech market
These days, the top five technologies that reflect the most significant developments in fintech are AI, cloud computing, blockchain, big data, and the IoT. AI may have the most applications out of all of them because it’s crucial to process automation and data analysis.
One of AI’s benefits is its ability to integrate seamlessly with other digital technologies. Its capabilities have expanded significantly as a result of this form of collaboration. AI may now be used for many fintech applications, including security, customer service, auditing, and many more, thanks to this feature.
Highlighted AI’s roles in fintech
All types of businesses are searching for ways to improve their operations through the use of digital technologies. A vital part of the digital infrastructure employed in many financial processes is artificial intelligence. Naturally, increasing corporate profitability through a range of benefits and business opportunities is the ultimate goal of AI-powered solutions.
Also Read: Is voice the next revolution in fintech?
Here are a few AI in fintech highlights:
- Enhance the customer experience.
- Increase the effectiveness of operations.
- Reduce operating expenses for a business.
- Obtain a benefit over competitors.
- Reach precise forecasts and analyses.
- Identify fresh business prospects.
- Improve control over risks.
- Increase property and asset security.
Top five CEO’s recommendations to use AI in fintech
Robotic advisors and AI assistants
These customer-focused solutions are typically integrated into more sophisticated online banking software. However, they can also exist as standalone mobile or web applications. Typically, they use SMS, in-app conversations, or mobile alerts to interact with clients.
These fintech AI assistants make it possible to use tailored strategies to enhance the customer experience and address a wide range of important topics, including financial advising and account security.
Systems for automatic fraud detection
The vast majority of them would like to claim that fraud is being prevented by AI technologies. By doing this, fintech companies attract partners and customers while discouraging potential illicit activity. For example, PayPal and Mastercard use AI and ML-based data processing systems to identify potentially fraudulent activities and other dubious conduct in real-time.
AI-based tools for adherence to regulations
Many fintech organisations use similar technologies to comply with applicable laws, much like the prior type of AI solutions. Strict laws are enforced in many states about know-your-customer (KYC) procedures, data protection, anti-money-laundering (AML) measures, and other mandatory programs for the finance sector. Financial service providers utilise AI analytics in conjunction with machine learning and Big Data technology to adhere to such rules and norms.
Investment and trading
AI) algorithms are used in trading and investing for portfolio optimisation, high-frequency trading, and the creation of investment strategies.
These algorithms are capable of identifying market trends, analysing enormous volumes of financial data, and executing transactions very quickly. Their goals are to reduce risks and maximise rewards.
Credit scoring
AI-driven credit scoring evaluates a person’s creditworthiness using machine learning algorithms. To give a more precise and comprehensive credit evaluation, these models take into account a wider variety of data, including non-traditional data sources. Those with little credit history will especially benefit from this.
Recent AI in fintech for the APAC market
Although the use of artificial intelligence (AI) tools is anticipated to propel financial technology enterprises in the Asia Pacific area, this is only partially the case.
Also Read: 6 common questions about establishing a fintech company in Vietnam
According to ResearchAndMarkets.com’s most recent projection, the Asia Pacific fintech market for AI is projected to develop at a compound annual growth rate (CAGR) of 17.7 per cent between 2022 and 2028.
By analysing many financial accounts, AI is used in the banking industry to evaluate a person’s overall financial health, provide real-time updates, and provide individualised advice.
By effectively analysing enormous volumes of client data to comprehend their preferences and wants, banks and fintech companies can leverage AI and machine learning to improve customer relationships.
Clear predictions of AI transforming the fintech industry
Greater efficiency, higher work quality, and a better user experience are what AI already provides, and the fintech industry has very bright futures for it.
Fintech businesses, for instance, can leverage this technology to develop innovations like recommendation systems, robo-advisors, and decision-process automation that help customers with investment questions or financial challenges.
As a result, AI offers enormous promise for fintech companies and their customers, but it also requires precision, attention, and consistency. With these principles in mind, artificial intelligence (AI) can assist fintech companies in strengthening their relationships with clients, enhancing their competitive edge, and increasing revenue.
AI is headed, and so are you
Fintech businesses—which range from online banks to payment processors to stock trading applications—are progressively utilising artificial intelligence (AI) to streamline processes, enhance judgment, and boost operational effectiveness.
Since artificial intelligence is utilised daily to improve efficiency and facilitate decision-making, it is anticipated to become more and more common in the banking sector. It is the current time’s BIG THING.
By integrating AI into quality management, fintech organisations can maintain a competitive edge and ensure that their products and services meet the highest standards of quality.
—
Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic
Join our e27 Telegram group, FB community, or like the e27 Facebook page
Image credit: Canva
The post AI in fintech: Boosting your revenue by utilising top 5 CEO’s choices appeared first on e27.