How AI & ML Technologies are Reshaping the Fintech Industry

How AI & ML Technologies are Reshaping the Fintech Industry

The traditional view of the financial services industry has been revolutionized with the emergence of fintech.The pandemic has accelerated the development of the fintech industry. Cashless payments and banking digitalization have started running rampant. Fintech works as a viable alternative for banking and non-banking finance services. The fintech concept may be new but it has enormous potential to streamline, enhance and secure world economic life.

Fintech developments are affecting all sectors of the financial services industry  such as:

  • Banking
  • Insurance
  • Capital Markets
  • Electronic Payments
  • Wealth Management
  • Personal Finance
  • Venture Capital

Impact of AI and ML on Fintech

We are now in the era of fintech 3.5, where artificial intelligence and machine learning (AI/ML) plays a vital role in our lives.Artificial intelligence is not just a fast fashion in the fintech world. On the contrary, this technology is here to stay.

According to research conducted by the Cambridge Centre for Alternative Finance, 90 percent of fintech firms are already using AI in some form.Although AI may still be seen by many as a “future technology” fintech is implementing AI today. AI has already made a tremendous impact on financial services.

Artificial intelligence can analyze large volumes of data, and through machine learning, it can iteratively improve over time.Digital banks and loan-issuing apps use machine learning algorithms to use alternative data (e.g., smartphone data) to evaluate loan eligibility and provide personalized options.Many financial institutions are now using AI to better detect and stop fraud in digital banking channels.

Fintech apps continue to improve AI features such as more advanced chatbots for customer service, better fraud-prevention tools to verify document authenticity, and advanced features that improve the accuracy and personalization of financial services.According to a report by Forbes, “Artificial intelligence will save the banking industry more than $1 trillion by 2030”.

6 Ways AI and ML are finding uses in financial services:

  1. Chatbot & Automated Customer Support
  2. Smarter & Faster Decision-making
  3. Fraud Detection & Prevention
  4. Better Trading & Wealth Management
  5. Client Categorization - Risk profile
  6. Predictive Analytics

Final Thoughts

As one of the leading fintech solution providers, at CBNITS we believe that as financial enterprises are searching for an open banking opportunity that allows data networking across banks and fintech startups, financial institutions across the globe will cooperate more with fintech companies. Our high-end Banking and Fintech solutions take financial institutions to the next level, empowering customers digitally.Our team is behind award-winning fintech solutions, serving some of the finest global clients.