The year 2020 brought many challenges to countries all over the world, as well as to various sectors. There was a significant shift in money-spending habits and a decline in human activity. For example, going to a bank’s ATM to withdraw cash. However, looking at the overall business landscape, there are some glimmers of hope in the finance sector. This article will discuss “How Artificial Intelligence Can Impact the Fintech Sector.”Discover the best info about AI automation.
Individuals who shrugged off the use of digital technology were forced to use online banking to complete their daily tasks during the lockdown. In this era, technologies like Artificial Intelligence and Machine Learning redefined how the finance industry worked.
Introduction
Human life has always included technology and tools. From the time our ancestors invented fire and the wheel to the sophisticated gadgets of today, technology has had a profound impact on our daily lives. And, yes, programs and applications that think and act better than humans are now a part of our daily lives. I hope you got the hin.? We’re discussing Artificial Intelligence and Machine Learning.
In the 1980s, machines with human intelligence were the subject of science fiction films like Terminator. However, the fantasy has become a reality after four decades. Regarding using AI by Fintech companies, it is encouraging to see finance industry titans collaborate with coders and software developers to create applications.
Is artificial intelligence reshaping the financial sector?
Yes, AI applications will be used in more ways than ever in 2021. Chatbots, for example, will answer more customer queries in banks and wealth institutions; AI will be used in fraud detection tools and KYC document verification. Technology can help wealth management firms evaluate an individual’s investment opportunities, create investment portfolios, and reduce the risks of adopting new technologies. In the following paragraphs, we will look in-depth at how Artificial Intelligence is assisting the Finance Sector:
A. Making Decisions
Before launching a new product or service, insurance companies and investment advisors can pose questions to AI platforms rather than customers. The platforms are laden with customer data and can analyze and provide recommendations for closing gaps and clarifying doubts.
This will assist insurance agents/advisers in gaining a clear understanding of customer expectations and decisions. They can then reframe the product or service to meet the customer’s needs.
B. AI Can Detect Online Frauds and Provide New Claims Management Insights
Banks’ analytical tools for detecting fraud include AI applications that monitor a customer’s spending patterns and alert attempts at fraud. Of course, a human can’t analyze extensive data and submit a report within the deadline. However, AI can detect errors and provide results within the specified time frame due to its automation process. In addition, some AI processes can change themselves to see new patterns in fraud detection cases. For example, insurance companies use AI and ML technologies to process claims. This is a classic example of how artificial intelligence influences the financial sector.
C. Virtual Financial Assistants that are Automated
Investment firms have always adapted their technology to the latest trends. They use automated virtual assistants to call new customers, have pleasant conversations with them, inform them about the new products, the pro,s, cons, and entice them to invest. However, these machines require information about a person’s financial portfolio to sell the best bonds and stocks. Have you heard of these Virtual Financial Assistants’ new moniker? It’s called “ROBO ADVISORS.” These new applications redefine how AI will be used in the financial sector.
D. Safety
Before two decades, no one could have predicted the success of the E-Commerce industry. Perhaps only a few. It is now a multibillion-dollar industry. With many E-commerce websites utilizing Augmented Reality and Virtual Reality to attract more customers, industry experts are concentrating their efforts on online security. Yes, AI applications have undoubtedly aided humanity. However, it is also true that hackers are using the same technology to break into e-commerce websites via chatbots.
In recent years, phishing has gained international attention. You get a call from a con man and are then duped out of your money. While this is a growing threat, banks have stepped up to provide a solution using the same technology. They have installed artificial intelligence (AI) applications to detect unfair spending activity on their servers. They can stop payments and send warning signals/messages to you and the banks if it is seen. As a result, customers’ hard-earned money has been saved by banks worldwide using this method.
E. Chatbots for CRM
The month is June 2021, and time has flown by, but many businesses have still asked their employees to work from home. The customer service industry faces numerous challenges, including internet issues and a lack of workforce. As a result, businesses saw a more promising way to incorporate AI chatbots into the CRM process. Recent CRM chatbots are highly developed and can adapt to provide answers to even the most complex queries. In addition, unlike traditional methods, where IVR was the primary option, chatbots can now directly answer customer calls, ensuring brand loyalty and quick solutions.
F. Complies with Compliance Requirements
Because of the rise of cybercrime, banks and financial institutions focus on factors such as KYC (Know Your Customer) documents. For example, a phishing attempt can result from a simple change of mobile number or the stalling of a mobile connection. Governments worldwide have implemented stringent procedures for investigating KYC documents to address this issue. However, verifying millions of offline KYC documents becomes difficult for an international bank or institution. An AI application, on the other hand, can scan a large number of documents, detect errors, and submit an accurate report on time. This enables banks to identify and correct errors in a customer’s profile.
G. AI Can Interact With Customers On Different Platforms
Bank introduced LUIS (Language Understanding Intelligent Service) in 2020 to answer nearly 10,000 Whatsapp queries. This service lets you check your account balance, apply for products, and request checkbooks.
In the future, banks may have an AI platform that works in tandem with virtual assistants like Alexa, Cortana, and Siri.
H. Artificial Intelligence and Search Engines
Are you surprised that this article’s topic is Search Engines? Yes? Please remember that millions of people use voice assistants on their mobile devices to open websites, perform tasks, and more. As a result, banks are finding it difficult to change the content on their websites to long-tail keywords or sentences used by customers worldwide. As a result, many banks have altered their web content to accommodate the terms customers use to access their websites via voice commands on mobile devices.
Artificial Intelligence’s Future in the Fintech Sector
Industry experts say AI-powered robots will be the following bank customer service executives. These robots can answer customer questions, guide them through various processes and bank forms, and reduce human labor force numbers by 20% by 2027.
The financial technology industry has always been at the forefront of incorporating new technologies and innovations into its operations. And when it comes to using AI to improve processes and services, the results are precise. The companies listed below are just a few examples of how AI assists the FinTech industry (companies and financial institutions) in providing the best service to customers.
Popular Artificial Intelligence Applications in the Financial Sector
1. WATSON PLATFORM BY IBMThis AI platform provides solutions for Risks, Compliance, and Customer Insight for investment firms. In addition, this platform assists in identifying customer behavior by utilizing cognitive capabilities.
2. MICROSOFT CORTANA INTELLIGENCE SUITE
This AI platform assists small-medium-large financial firms in gathering information about financial crime and analyzing data used to improve customer relationships.
3. EINSTEIN SALESFORCE
This company assists financial advisors in obtaining information about a client’s financial situation.
4. ZESTFINANCE (LOS ANGELES)
ZAML, or Zest Automated Machine Learning, is the platform that informs banks about borrowers’ credit history or information. It analyzes thousands of data points and produces accurate results. In short, the platform assists in identifying customers who may have difficulty repaying their loans. According to the company website, the platform has helped financial institutions reduce losses by 25%.
5. SCIENTIFIC SYSTEMS (NEW YORK CITY)
This underwriting platform, like ZestFinance, provides information on credit card applicants. They examine the customer’s spending habits and interactions and then offer transparent results.
6. ALPHASENSE is a sixth sense. (NYC)
Alphasense is an artificial intelligence (AI) search engine used by Fortune 500 companies and investment banks. It uses NLP, or natural language processing, to detect financial market changes and check keyword searches with news channels, research papers, filings, and online transactions.
7.. KASISTO (NYC)
This company’s AI platform, KAI, is well-known for improving customer experiences by providing options, solutions, and recommendations for financial markets.
Conclusion
I hope the above information has helped answer the question, “How can AI impact the fintech industry?” Please keep in mind that the fintech and AI industries are constantly evolving. So let us wait and see!!
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