Almost every field directly or indirectly related to technology has Artificial Intelligence involved with it, and FinTech is no different. FinTech or financial technology refers to the technology that aims to deliver financial services with traditional financial methods. The AI development company is indeed growing with the demands for it. Keep on scrolling to find out how FinTech is making the perfect use of artificial intelligence.
There are 7 different types of AI that are also used in financial technology markets. They are as follows:
Artificial intelligence has the tendency to respond with different types of stimuli or keyboards. They can reply on the basis of memory for the same action. However, they cannot learn on their own. They need data inputs to know how to respond or react.
Limited memory is that type of artificial intelligence which is capable of learning through the historical data and combining it to make decisions. It can be found in many of the artificial intelligence in business and is one of the leading custom AI solutions for applications.
This is a type of artificial intelligence that combines the previous two types. Researchers are currently working on this and adding more innovations to it. This type of artificial intelligence can work with needs, emotions, thought processes, cognition and beliefs.
This type of artificial intelligence is currently only in statements and hypotheses. Researchers are working on it. Its aim is to have all the components of the above three types, along with having the ability to create their own ideas and form their own desire. However, it is facing some criticism as many critics are rating it as an end of humanity.
This type of AI is a combination of all the existing ones and corresponds to all the limited and reactive memory. It is capable of deep learning and is said to be the biggest achievement of artificial intelligence to date. These machines can perform all the tasks they are assigned with human-like capabilities.
This type of artificial intelligence is capable of perceiving, understanding, learning and having somewhat human tendencies. They carry on multi-functional capability.
The last type of artificial intelligence is artificial super intelligence. Thus, it is one of the most capable ones. It has a combination of all the above existing artificial intelligence with better functioning. They have greater memory and can process data at the fastest speed, and the same goes for decision-making abilities and analyzing capabilities with accuracy.
Artificial intelligence or AI has made the work for human employees and the work process easier and faster in financial technology firms. Following are some major impacts that it has made in FinTech:
All the requests regarding balance, general account information, user transaction etcetera is managed and handled by robots. These robots also efficiently provide the results and create a digital transformation. The transaction search is also easy with the help of robots as it allows the users to do particular searches regarding financial transactions. The robots keep all the data in place, cutting off all the extra troubles. They are also very efficient in calculating credits and debits.
Financial intelligence is very helpful in providing financial advisory and other related services. Users can have easy access to such information. Moreover, they can also keep up with their savings, spendings and other financial plan details. They are basically digital assistance providing the details regarding financial transactions and also managing them without hassles. All the details and queries of the users can get suitable answers with these robots.
Artificial intelligence is very safe for customer's security as well as the bank's or financial institution's security. It gives the fastest response to customers without risking their information to a third party. All the personal information that a customer enters remains confidential.
Moreover, artificial intelligence ranks the customer profiles on the basis of the risk they involve. This helps the institutions to determine which client it is most suitable and which client involves risks. It helps in the decision-making process and offers better customization.
Artificial intelligence is also useful for making attrition predictions. Search predictions can help institutions have an insight into the future and take actions accordingly. AI consulting also informs about the changes that are possible to occur in the future with the business. Companies can know about the client's demand and the policies they prefer and the ones they don't. Therefore, this helps companies in making preventive maintenance and actions.
Artificial intelligence in the FinTech market provides accurate assumptions and predictions. This is because of the better analysis of data that AI is capable of doing. These analysis, predictions and assumptions help the financial agents to make better decisions and have a better insight into the future. They can come up with better strategies and policies with these predictive analytics.
Artificial intelligence is better in determining fraud and risk. They keep the whole history of a client's data and use many shreds of evidence to detect frauds. The process of doing this is also fast. It helps in both institution and the customer's experience. If artificial intelligence detects any possible risk, then it quickly informs and alerts the agents. It helps in saving the company from fraudsters and other kinds of risk to get involved with.
Artificial intelligence in the FinTech market provides better customer support. It answers all the questions and queries of customers quickly through voice systems and chat boxes. They detect keywords for this purpose and provide desirable answers. They are very good at answering the frequently asked questions. This also helps agents to save more time and reduce some hassle.
Artificial intelligence also provides better wealth management in financial technologies. They can access the client's actions and behaviour and monitor them in the right direction. Artificial intelligence can also provide needed information and details to clients regarding their wealth and accounts. It not only leads to better management, but it also helps in reducing costs, saving time and increasing the customer's experience.
Artificial intelligence helps in deriving crude information with the underwriting process that helps in the better formation of decisions for customers. It also allows the agents to check with their client's online and know about their insurance needs. The automatic underwriting that artificial intelligence provides fastens this whole process, along with reducing costs. This also helps in reducing the risk for the probability of any mishap or damage while making an insurance deal.
Another benefit of artificial intelligence is that it acts as digital financial assistance for the financial agents as well. They help in monitoring the financial AI trends 2020, events, bonds and stocks and present them with the client's financial goals. This helps in forming a personal portfolio that can further be used for the sale or purchase of bonds and stocks.
Radical changes and evolution are occurring in fintech in terms of artificial intelligence. The subject to these radical changes includes investment management, investment portfolios, automated wealth advisors and blockchain methods. These trends also help in reducing cost.
Big companies like Sentifi (Swiss Fintech), MDOTM, Raiffeisen Capital Management etcetera are all adapting to artificial intelligence for achieving greater goals. AI apps have also come in light with the development of artificial intelligence. Computer annunciation matrix, digital profile, fixed obligations to income ratio and its calculation and many other aspects have been brought together with the help of AI development.
The future for Artificial Intelligence looks bright. Its growth and expansion are continuously increasing. In terms of fintech, reports have been made that the market size will grow about $7,305.6 million by the year 2022. Its estimates and statistics from 2016 are $959.3 million.
The market is also expected to witness a compound annual growth rate (CAGR) of about 40.4%. Many big fintech companies have already joined hands with artificial intelligence, and many are looking forward to doing the same. Billions of dollar revenues have overall been created from Artificial Intelligence, and it is expected to grow massively by the end of 2022.
One can hire AI developers easily all over the world. You can either look for teams and companies coming from reputable backgrounds, or you can look for freelancers. In one way or another, make sure to collect references and look into the background details. Also asked for their past experiences and the works they have done along with the company names they have worked for.
These were all the critical points that you need to know regarding artificial intelligence. We can conclude that artificial intelligence is indeed a crucial point for financial technologies as well. The future for Artificial Intelligence in terms of fintech is also appealing according to the estimates and statistics made by experts.
Yes, artificial intelligence is completely safe to be used for financial technologies. All the information and data of the business and customers remain confidential with AI.
No, artificial intelligence and its adoption for financial technologies related companies are not expensive. In fact, it can help in reducing cost and increasing revenues. AI also helps in saving the time of the agents and improving the experience of the customers.
Artificial intelligence can monitor historical data and detect hidden patterns that even a skilled human cannot do. It further makes predictions and conclusions with these patterns that are highly accurate.
About the Author
Anvika Sharma is a Senior Software Engineer in Mobinius Technologies – a leading Digital Transformation Company. She is passionate about computers and technology and loves to write on various topics and express her thoughts in the form of write-ups.
Image courtesy of Global Fintech Series