Did you know that the global AI fintech market was at $42.8 billion in 2023?
It turns out that the market could reach a staggering $50.8 billion figure by 2029, which some people assume is an understatement.
Artificial intelligence (AI) is changing industries around the world. From education and healthcare to financial services and banking, everything is changing due to new AI applications emerging rapidly.
In the fintech industry alone, businesses have found ways to improve banking and security: fraud detection, personalized services, risk management, and automation are the most popular aspects. Let’s take a more comprehensive look.
- AI in Fraud Detection
PayPal published a report in January 2024 where it stated that payment fraud went down from 3.6% to 2.9% in 2023. This was due to “data analytics,” as the report indicates, which is a key component of modern AI applications in banking and online security.
AI systems work the same way as humans, but faster and more efficiently. A fraud detection system with AI capabilities can process huge data sets within minutes if not seconds.
It can recognize unusual patterns: for instance, the same user logging in from different locations within a few minutes when the actual distance between those locations is thousands of miles.
Most AI systems use machine learning models to flag suspicious activity like that. They learn from continuously expanding datasets to identify typical behavior from non-typical behavior. As a result, early fraud detection prevents losses and ensures legitimate transactions.
- Personalized Banking: New Approach to the Client
Even a smart website design by an experienced AI developer can significantly improve customer experiences. Take the example of AI recommendations, where existing customers get suggestions based on their financial data. If there’s a young professional saving for a home, the website or app might recommend mortgage options and investment plans that match their income and saving patterns.
To improve service personalization, you can also include virtual assistants — like chatbots and voice assistants. They can perform routine tasks like balancing checks, funding transfers, and answering customer queries. Additionally, they free up human agents so that they can focus on complex issues and key decisions.
You can include AI in customer applications and internal operations for its predictive abilities. Since AI can analyze past financial data quickly, it can use the information to forecast trends and changes. For example, a small business might adjust lending operations for unexpected spikes in credit requests during holiday seasons.
- AI in Lending and Risk Management
There are AI tools and applications that can use different data sources to gauge an applicant’s creditworthiness. You can use social media activity, previous transactions, and utility payments through a single AI tool to assess someone’s borrowing ability. For startups, this is a great strategy because it streamlines lending operations where underserved populations are catered to while minimizing risks.
In addition to lending assistance, AI can identify risks better than traditional methods. It goes through extensive customer behavior datasets and factors in macroeconomic aspects with market trends. In turn, this helps you make informed decisions.
- Automation and Efficiency of Operations
Automation is perhaps the most understated aspect of integrating operations with AI. From instant data entries to compliance checks, your AI system can reduce human error. Furthermore, it can accelerate your workflow.
Take document processing systems, for example. If you power these systems with AI-assisted natural language processing (NLP), they can automatically extract and validate information from thousands of documents in minutes.
You can cut costs, whether through AI assistants and chatbots or AI-driven MVP development. What is MVP? It is minimum viable product development where you create, for instance, an AI application with minimum basic features to test it early and get feedback. As a result, you can decide whether to go through with an application program or invest elsewhere more viable.
How AI Is Shaping New Standards in the Fintech Industry
In 2024, it is clear that without automation and streamlined AI-assisted fintech operations, many businesses could face serious challenges. This is particularly important for those aiming for growth and expansion.
Today, AI adoption is critical to survival for nearly every modern business. From startups to C-suite executives, everyone must stay competitive. And, knowing that competitors are increasingly investing in AI applications, they must as well.
Recent Posts
- New York City Health Department Releases 2023 HIV Data For World AIDS Day 2024
- The Top 10 Benefits Of Living In A Retirement Village
- New Heritage Theatre Group Celebrates 60 Years With Gala And Future Endowment Launch
- Impact Of AI On Financial Technology: 4 Innovations In Banking And Security
- Various Ways To Exercise Your Forearms In Harlem And Beyond
- UFT Joins No Times Square Casino Coalition
- Join Us At The CCCADI Firehouse On For A Special Holiday Edition Of Sou Sou!
- Mayor Adams Proposes Elimination Of NYC Income Taxes For Working-Class Families
- NYCEDC And NYC Health + Hospitals Mark Completion Of Metropolitan Flood Wall
Become a Harlem Insider!
By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact
