FinTech is adopting AI, thanks to the abundance of available data and the increased computing power affordability. Artificial Intelligence offers a range of financial sector benefits, including improving productivity, increasing profits, and enhancing product quality.
Most FinTech efficiently deploys AI across various finance streams like cybersecurity and customer service. Plus, AI is also changing the way online banking works. For example, Chatbots’ National Language Processing and Emotional intelligence are proving to be a cost-effective alternative. Additionally, as AI interprets more data, they rely less on human intervention.
- Successful banking-related chatbot interactions will grow between 2019 and 2023.
- More than 826 million hours will be saved by chatbot interactions by 2023.
- More than 70% of chatbot interactions will be through mobile banking applications.
As the demand for online banking and payment services continues to increase, adopting AI has become a key to sustainability and growth in FinTech. Here are some ways AI trends will manage finance in the future.
1. Fraud Detection
From loan application scams to false insurance claims, deceptive financial activities have increased over the last few years. Besides, counterfeit transactions can cost businesses millions of dollars.
In addition to handling financial losses, most companies must be adept at handling negative customer experiences that can damage the business’s reputation.
AI in business and finance venture solutions utilizes machine learning solutions to target fraud and cybersecurity. With large-scale financial operations, reviewing every transaction for suspicious activity is nearly impossible.
AI systems help to monitor banking transactions in real time, while AI algorithms can help detect usual patterns with greater accuracy.