We hear about AI everywhere now… Not just at work, but it’s even become a topic of conversation at home. AI has grown increasingly important to the way in which we operate as humans. With this in mind, the fintech industry has also been focusing on harnessing the power of AI as it has the potential to revolutionize the way financial institutions operate. According to a recent IBM research study, 84% of financial organizations expect to maintain or increase their level of focus on AI. The study also found that almost a third of these companies increased their AI investments since the pandemic hit in 2022.
Building AI into their processes can help fintech companies with improved efficiency, enhanced accuracy and more personalization, among other benefits. Here are the top 10 ways in which fintech companies are using AI to better their applications and experiences.
- Fraud Detection: AI Algorithms can help in detecting fraud and other criminal activity by better understanding patterns in transaction data.
- Risk Assessment: AI can monitor credit risk and make trustworthy recommendations about lenders’ likelihoods of default.
- Innovation: AI is opening a new world of possibilities to create fintech solutions that previously might have been impossible or impractical.
- Cybersecurity: Cybersecurity is absolutely critical in the fintech vertical. AI can be used to identify and address cybersecurity threats instantly.
- Trading: AI has a full understanding of the market and can therefore be used for automated trading.
- Customer Service: By using AI-powered chatbots, financial institutions can provide more meaningful, real-time feedback and service to their customers.
- Insurance Underwriting: Along the same lines of risk assessment, understanding these factors can help banks and financial institutions determine insurance premiums and offer more personalized insurance coverage.
- Accuracy: Through AI algorithms, it is simple to accurately identify data patterns and find inconsistencies that could easily be missed by humans.
- Compliance: Having AI monitor compliance regulations can help fintech companies identify any potential issues.
- Recommendations: AI can analyze customer level data and create a more personalized approach of recommendations for individuals.
Of course there are plenty of more reasons why financial institutions have started adopting AI into their business processes. We also know there is much more potential to improve efficiency and enhance the overall customer experience by harnessing the power of AI.
Interested in learning more about how Distillery has worked with Fintech clients? Take a look at our case studies to learn more.