5 Areas of Impact for AI and Machine Learning in FinTech

70% of FinTechs are using AI and MI today, and in the next five years it will have the biggest impact on the industry

AI and machine learning have changed financial services lately and are ready to completely alter the universe of payment soon. With the capacity to rapidly analyze huge amounts of data, organizations are using AI to create efficient and recognizable designs that can improve decision-making. According to a report by Forbes, "Artificial intelligence will save the banking industry more than $1 trillion by 2030".

The use of AI is redefining the number of things that are done inside the financial industry. Many financial activities are done through powerful applications, latest technologies are opening up many opportunities for individuals.

Here are 5 ways using AI and machine learning bring benefits to FinTech companies:

Power of Data Science

With the power of data science and data visualization tools, FinTech applications are developing new and fascinating ways with regards to which users can process data quickly. Applications can change complicated information into a simple to process insights that help users to utilize complex data to improve their financial decision-making.

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Helping the financial industry fight fraud

An increase in digital transformation means growth of financial cybercrimes but thanks to AI and ML, both organizations and users are now able to protect themselves and their account data. Algorithms are capable of identifying dubious movement, and surprisingly better, they can inform users. They can monitor everything that goes on behind their backs while being certain that their resources are protected.

Using Chatbots for customer support

Recently, FinTech firms are using massive numbers of chatbots as a major channel to solve issues and effectively interact with customers. Chatbots allow organizations to reduce expenses and boost consumer satisfaction. The most common machine learning solutions are robot advisors and automated customer support that help companies to maintain social distancing guidelines and improve customer experience along the way.

Reshaping Insurance policies

Artificial intelligence is being used to reshape insurance policies. Since this industry is vigorously determined by financial tools, FinTech applications are being utilized to decide the level of risk. With the help of technology, organizations can calculate someone's level of risk through their activity.

This has been utilized with progress by the automobile industry. With a blend of IoT advancements and FinTech applications, the industry can measure a person's risk level by assessing their driving skills through a mobile app.

Payments

Though AI has been growing, it is only just beginning to be used in payments. The use of AI in digital payments, to the point where there is an entirely frictionless, checkout-free experience at any retail store or other location where you would normally encounter a point-of-sale (POS) system.

The utilization of AI in digital payment is still new, even though it has grown a strong foothold in the broader financial services industry. Consider a couple of experiments of Amazon's cashier-less stores, just envision that experience extended all over the place, without being attached to a specific merchant or brand. By consolidating AI with different innovations like digital wallets, geofencing technology, digital cash, which empowers retailers to track when you enter and leave a store, you will ultimately have the alternative to save your payment card data on record with any retail store for a checkout-free shopping experience.

In conclusion, every day, AI is becoming more important for FinTech companies. As banks and other financial institutions endeavor to expand security, smooth out processes, and work on analytics, AI is turning into the technology of choice.