All You Want to Know About Artificial Intelligence in FinTech

To improve the financial industry, a lot of enterprises use Artificial Intelligence. This technology allows bringing innovative solutions. Also, Markets and Markets research shows that the global AI in the FinTech market will grow to 7,305 million by 2022. 

There are a lot of hardware and software solutions that tend to improve financial operations using Artificial Intelligence.

In this article, we’ll cover how to use AI software in FinTech and the benefits this technology brings to the financial field.

Advantages of Using Artificial Intelligence in FinTech

First of all, let’s figure out several benefits of using AI for FinTech.

Advantage #1. Improved Customer Services

How do customers get support from financial organizations? There are two primary ways — by phone or online chat. Choosing either the first or second option, you should hire human workers. However, people tend to get tired and make mistakes. Also, in most cases, they can’t provide customers with instant feedback.

Artificial Intelligence helps solve this problem. It’s possible to build a chatbot and a robo-advisor.

Chatbots

The main advantage of chatbots is their ability to work 24/7 without breaks and delays. So, customers don’t need to wait for the answers.

There several use cases of AI-based chatbots in FinTech:

● Notify clients about any changes and new offers.

● Proceed users’ complaints.

● Provide customers with the required data.

● Answer the users’ questions.

Robo-Advisors

Robo-advisors have similar functions’ to chatbots'. However, robo-advisors were explicitly developed for the FinTech field.

It’s possible to fulfill a bunch of tasks with robo-advisors. For example, they can estimate risks of the investments, pick an investment strategy, and so on.

By the way, let’s speak about investments. To invest money wisely, people need professional advice. However, such consultation with a human professional tends to be expensive. Robo-advisors can help you pick the investment strategy and follow it. 

Advantage #2. Fraud Predication

AI-based solutions allow solving a lot of issues connected to financial fraud. To give you a hint, there are several use cases:

● The system tends to memorize thousands of potential fraud and can identify hidden ways of fraud. 

● The software solution works 24/7, so you can get fast results.

● AI-based solutions learn from customers and analyze their behavior. So, it’s possible to predict frauds when the actions contradict standard behavioral models.

Software solutions with Artificial Intelligence are useful for the FinTech industry. It allows preventing and solving a bunch of security problems. Also, it’s possible to use AI in the banking sector. As a result, customers feel protected, using the software.

Advantage #3. Risk Assessment

Lending brings a bunch of risks. There is a solution — AI-based software. Artificial Intelligence can analyze the customers’ personal data to figure out all the possible risks. It makes the banking system more protected.

For instance, you can integrate machine learning technology to analyze and predict the possible credit risks of a particular client.

Visual identification and verification

Visual identification allows P2P lending industries to verify the identity of the users that want to take a loan. It’s possible to confirm an ID card to ensure that this is the required person. 

Different AI-based solutions allow modifying all the financial processes, making them more secure. And security leads to customers’ trust and loyalty. 

Advantage #4. Better Insurance Recommendations

One more aspect that AI brings innovations to is the insurance sector. Many insurance companies like Ageas have already integrated AI and boost their everyday tasks. 

Artificial Intelligence can be used for proceeding large data volumes like real estate and motor transport. AI estimates the damage level after the car accident or monitors the house condition.

AI is quite useful for improving insurance services. Machine learning technology tends to replace human workers, doing the job faster and without mistakes.

Also, Artificial Intelligence assists consumers and insurers decrease the number of insurance claims. So, it’s possible to turn insurance into a preventive service.

Advantage #5. Improved Analysis of Investments

Hedge funds stand for private investment funds that cooperate with wealthy professional investors. AI allows processing a great amount of data and improves the quality of investment analysis.

Also, Artificial Intelligence helps create hedge funds that perform all stock exchange operations without human workers.

AI algorithms can predict market change, analyzing future prices, and other metrics. 

To conclude the post, Artificial Intelligence brings a lot of innovations and benefits to the financial field. Of course, the primary benefit is fraud prediction. Speaking about the financial industry, customers want to prevent security issues. So, it’s required to show your clients that all your financial operations are secure and profitable. Artificial Intelligence can change the way customers interact with the banking industry. It improves various aspects of FinTech services.

Author’s Bio:

Vitaly Kuprenko is a technical writer at Cleveroad. It's a web and mobile app development company in Ukraine. He enjoys telling about tech innovations and digital ways to boost businesses.