Artificial Intelligence – A new wave for the Fintech industry
The impact of AI and big data are much talked about topics in the IT industry in recent times. AI is impactful in the analysis of data rich systems of big data. The application of AI is considered to assist the fintech sector with better customer support. AI makes customer experience more personal, by identifying individual preferences and delivering relevant advice to client queries. Now let us see how AI is expected to deliver high outcome for the fintech industry.
AI takes over the task of humans in identifying and extracting useful information from a massive data pool or database. The application of AI reduces time and effort required to fetch important data from documents. While traditional financial institutions may face the issue of maintaining unstructured database of legacy systems, the newer banks have the advantage to leverage the benefits of implementing AI from the beginning itself. The implementation of AI in structured data can yield accurate and quick information from a data repository. The fintech companies are using credit scoring, personal finance history, asset management, sentiment analysis, insurance quotes, debt collection, predictive analytics, fraud detection, and others through AI to help them in decision making in various aspects of businesses.
With technologies such as blockchain and cryptocurrency, the fintech industry is expected to invest largely on newer technologies and embrace AI for decision making. However, regulation and compliances are the roadblocks to the success of AI in the fintech sector. It looks like the government may take time to give the ‘go ahead’ to the implementation of AI or blockchain particularly in the US, but it is likely that AI solutions to get adopted by most of the financial sectors for improving customer experience and better decision making.
The success of AI depends on how the complex decision making and imbedding “common sense” in the software are validated and found useful. AI can help fintech players to identify historical data and predict customer behaviour. It can assist in early identification of security threats, visual identification and verification of documents. It can also enhance customer experience with chatbot interactions for an accurate and quick response system. The impact of AI is expected to be seen in all the industries and its implementation in the fintech industry is expected to impact management decisions related to investment patterns, progressive marketing strategies, and superior customer experience.
ICT Market Research Analyst