With the advancement in technology and companies implementing the latest tech inventions in their work environment, the financial sector has found a new companion capable of revolutionizing their industry ; Artificial Intelligence. The global AI in FinTech had an astonishing valuation of USD 7.91 billion by 2020. The growth is predicted to reach even higher of USD 26.67 billion by the year 2026. This growth in valuation is predicted to take the Compound Annual Growth Rate ( CAGR) to 23.17% during this period.
Although digital finance is not a new concept for FinTech, the sector got its boost post 2020, all thanks to the pandemic; COVID-19! The global pandemic encouraged the use of online banking which is still on a rise. This transition has gifted the FinTech companies with two most useful technologies ; Machine Learning(ML) and Artificial Intelligence(AI) which have proved to be the key reasons in bringing dynamic growth as well as sustainability in their companies.
Now let us have a glance at the most useful ways Artificial Intelligence and Machine Learning can be implemented in the best way possible in order to take the productivity and growth to a much greater level exponentially.
Customer service powered by AI
Chatbots have gained immense global recognition over the years. With the efficiency and accuracy offered by Chatbots, companies have automated the initial process of their customer interaction and replaced it with Chatbots. These programs offer human-like experience and aim to solve the basic and moderate queries of their customers. These AI- powered chatbots are capable of minimizing the workload of humans and saving a large amount of expense on hiring employees for the same job. These chatbots also help the employees in saving a huge amount of time and enable them to look after more crucial queries which need personal assistance. Chatbots have indeed expanded the customer networking of FinTech companies.
Fraud Detection by AI
Frauds can be very damaging to a company in almost all aspects. Financially, companies incur heavy losses due to fraudulent transactions. These transactions and losses also impact the company’s reputation and damage the FinTech company’s name in the global market. By implementing AI in the systems brings authenticity and added security in all the transactions. The AI can detect frauds and straight away reject the transactions or can highlight the transaction for suspected fraud so that the concerned team can ensure if the transaction is authentic or not.
Loan Approval by AI
Loan approvals is a tedious work for the employees which involves heavy time consumption and incurs considerable expense in salaries. This hectic process can now be automated with the assistance of AI powered applications. With AI’s high accuracy and efficiency, the applications are capable of performing real- time analysis. This enables the applications to speed the approval process for low- value loans and further assist the applicants with higher valuations and mortgage applications.
It is quite evident from the above mentioned facts that Artificial Intelligence brings a huge amount of benefits for the FinTech companies across the globe. It is needless to conclude that Artificial Intelligence is meant to successfully become the best companion of the FinTech world.
Author- Toshank Bhardwaj, AI and Telemedicine Content Creator
