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The boom of developments in the sector of artificial intelligence (AI) has opened a variety of opportunities for FinTech companies worldwide. The latter include personalized wealth management, automated customer support, upgraded fraud detection mechanisms and financial assistance and many other tools that have a potential of greatly improving FinTechs’ operation.
Just think about the fact that back in the day you needed to hire a financial advisor in order to get valuable insights about the market and design an effective investment plan, while these days FinTechs are developing solutions that allow for the complete automatization of the process. They first appeared in the 1950s with credit cards and have gone through a major evolution and development, becoming what they are today – key figures in the financial ecosystem of the world. Throughout the years the industry has introduced various valuable tools to the audience, such as ATMs, which allowed people to withdraw and deposit funds without having to physically interact with banks’ employees. Further, in the 1980s, the FinTech industry introduced electronic stock trading. Sellers and buyers could now operate on a single platform, which greatly simplified the entire process. New ways of data storage and online banking became the next steps in the story. That gave a start to such innovative tools as mobile payments, new-loan algorithms, investing services, and the list goes on. Today, FinTechs all over the world are leading the technological revolution and continue to set new trends that increase industry’s competitiveness and growth. AI is in the core of all this, making possible things that once seemed unrealistic.
AI in FinTech
The main application of AI has been aimed at improved customer service and experience. Manual jobs have been automated in order to minimize the costs and the human error factor, which can sometimes decrease accuracy and drive down productivity dynamics.
Making payments in a couple of clicks came at the cost of compromising a certain level of security. However, all the issues can now be overcome with the help of AI, which gives customers greater convenience, while effectively protecting their data from fraud and other types of criminal activities. FinTechs use the data the they have access to in order to gain valuable insights and create efficient AI solutions that are aimed at maximizing security. The intelligence of the tools is constantly being subject to improvements through the updated analysis of data that FinTechs possess.
Customer expectations are constantly increasing and becoming more and more demanding. In order to effectively respond to the growing needs, companies must develop customizable and flexible solutions that can make operation faster, more intuitive and secure. One of the developments that was introduced in this regard were the chatbots – personal virtual assistants that can administer and manage customer issues in the world of finance.
Chatbots are basically a messaging platform that is developed to respond to customers 24/7, with no holidays and days off. Besides, chatbots have the capacity to complete requests e.g. execute a transaction. With the application of chatbots FinTechs increase customer satisfaction, cut off the unnecessary labor costs, but most importantly – leave no space for human error. While affording an advisor can sometimes be challenging, consulting with a chatbot investment expert is as convenient, yet much cheaper. These pieces of artificial intelligence analyze the customer’s financial profile and goals and design a very specific and customized product.
FinTechs are taking advantage of the newly appearing opportunities and pursue a cutting-edge technology approach in everything they do. For instance, they are now working on Intelligent Process Automation, which will allow for the high speed processing of structured, semi-structured, and unstructured data with minimal errors.
In order to effectively respond to the challenges that the intense competition puts out, FinTechs must follow the trends that are changing in the blink of an eye. In a nutshell, if a company manages to keep its customers satisfied using the latest technological advancements, it can be sure to reserve its stable position on the market.