Artificial intelligence, also known as AI, has taken the tech world by storm, allowing companies to cut costs, automate a variety of their processes, as well as boost their bottom line. AI-powered chatbots, specifically, are being used by companies big and small as virtual assistants, customer care representatives, marketing executives, and salespeople.
Consumer banking, advisory services, retail financial planning, investment advice and wealth management, all of these services can be delivered using a conversational user interface with artificial intelligence software behind. The combination of technologies can empower firms to supply services to customers where they were unable to supply human service profitably (i.e. lower net worth sections of personal financial, investment and retirement advisory), but can now function using codified knowledge and AI-powered software.
Ways in which AI is playing a major part in changing Fintech:
One of the key reasons various finance firms are implementing AI into their processes is to increase security. Normal security systems like anti-viruses are no longer keeping up and companies are looking for the next best thing: artificial intelligence. AI uses machine learning, which allows companies to fine-tune their systems to improve security.
Data-driven management decisions at lower cost lead to a different style of management, where insurance leaders and future banking agents will ask the right questions to machines, rather than to human experts. Machines will then analyze the data and will come up with the recommended results, which can help leaders and their subordinates take better decision.
Reducing Processing Times
In addition to keeping sensitive information safer, AI cuts processing times in half. As you well know, processing receipts and other financial documentation is extremely time-consuming; it requires the patience and perseverance of multiple resources and is one of those necessary tasks that’s often prone to human error.
Automated Virtual Financial Assistants
Automated financial assistants and planners assist users in making financial decisions. These include monitoring events, stock and bond price trends according to the user’s financial goals and personal portfolio, which can help in making recommendations regarding bonds and stocks to buy or sell. These systems often called “Robo-Advisors” and are increasingly being offered both by established Financial companies and Fintech Startups.
Increasing Levels of Automation
One of the most common benefits and effects AI is its automation opportunities. In addition to AI reducing the manual expense management problem, it can automatically generate expenditure and expense reports quickly, efficiently, and without errors. AI understands approval workflows and allows companies to restructure and automate the expense tracking process. It also helps to automatically prevent reimbursement fraud and guides organizations with their budgeting efforts, thanks to automated reports.
Offering Game Changing Insights
One of the most valuable benefits AI brings to organizations of all kinds is data. The future of Fintech is largely reliant on gathering data and staying ahead of the competition, and AI can make that happen. With AI, you can process a huge volume of data which will, in turn, offer you some game-changing insights. These insights can be used to create reports that not only increase productivity and revenue, but also help with complex decision-making processes.
While much of the investment in artificial intelligence has been into multi-purpose platforms which are figuring out their specific, high-value usecases, the chance in Fintech is somewhat different. Fintech has a base of technological prowess in the technologies supporting AI and several immediate high value uses.