Today, AI is into every nook and cranny of the digital businesses whether it being automating various processes or boosting their bottom line by cost-cutting; and FinTech is a no exception. In fact AI is aiding FinTech companies’ towards better customer service by enabling them to carry out tasks more accurately and less time-consuming. Moreover, machine learning allows companies to predict trends and patterns using data and thus aids them to serve people better and relevant products.
Basically, AI improves the end results for the company and the customers by applying tools and techniques derived from aspects of human intelligence at a beyond human scale. According to Jason Raznick, founder of Benzinga, a financial media outlet, “We're into the first phase of AI and machine learning adoption in financial services. In last Benzinga FinTech Summit, a panel of investors openly discussed sought-after projects and AI-powered FinTechs were the top of their list”.
Enterprises benefited after using Artificial Intelligence.
AlphaSense, launched in 2010, is a revolutionary search engine that helps knowledge professionals quickly find the information that matters. They let experts get insights that are significantly more customized and accurate than a simple Google search. No wonder it was listed in the AI 100, Forbes FinTech 50 and Won Awards for Best Sell-Side Analytics Product and Best FinTech Solution. AI in AlphaSense helps in applying intelligent search and language algorithms based on past trends and thus unearthing most relevant data efficiently and fast.
2.NumerAI: NumerAI is the world’s first artificial intelligence hedge fund and was established by mathematician Richard Craib in 2015 in order to make stock market predictions. Thousands of anonymous data scientists drive Numerai’s trades are determined by an AI.
3.WealthFront: WealthFront a ‘Robo-adviser’ investment company was founded by Andy Rachleff and Dan Carroll in 2008. Recently, the company revealed that the latest version of ‘Robo-adviser’ is based on a better integration of AI and modern APIs. For instance, the new algorithm would help users know if they have enough cash for emergencies or whether they are too heavy allocated to a certain stock; all by tracking records like how account holders are spending and so on.
3.AppZen: Appzen, founded in 2012, is the first artificial intelligence (AI) solution for back-office automation. The company aims to automate expense report creation, compliance, and audit using AI and thus saves its clients’ hours of lost productivity
How can AI companies help FinTech enterprises?
FinTech enterprises have been using AI for quite long. With AI, companies make better financial decisions with lesser fraudulent risks. Here is the list of what all AI has in its bucket to serve for the betterment of FinTech companies
● Monitoring data: FinTech is a combination of finance and technology. Hence when said data handling and monitoring, it does not only includes business metrics like daily revenue, number of accounts etc but also includes technical metrics like page load time, number of simultaneous connections etc. AI enables FinTech enterprises to handle all the matrices at once while reducing duplicate records and human errors at the same time. It basically boosts the benefits of financial software and provides more personalized financial services, investment advice, financial planning, and so on.
● Analysis: AI typically enables companies to predict patterns and trends on the basis of massive data available with the companies. These predictive analytics serves a game changer as it enhances business operations and surpassing competitors by having a better understanding of what customer might buy next or what product might suit him/her best as per their current investment plans.
● Reducing processing time: Documentations and processing receipts, especially in FinTech, require patience and perseverance and are time and energy consuming tasks. This makes it prone to human error. Well, AI not only processes the information more accurately but also cuts processing time in half. This is because machine learning recognizes patterns and advances with every task it undertakes and thus, processing becomes quicker over time.
● Empowering smaller companies: Big companies heavily rely on AI and because this technology is increasingly accessible and affordable in form of tools, the start-ups are using it to compete with larger players in their industry.
● Fraud Prevention: With the improved speed and convenience there has been an increase in online finance activities and thus an equal increase in frauds. As per a source, online frauds rose by 33% in 2016, and 74 percent of businesses were victims of payment fraud. With the massive increase in financial frauds, many finance companies turned to AI for rescue. As a result, 30% of large financial institutions and 46 percent of the largest FinTech companies are investing in AI, says a PwC report. Machine learning enables an enterprise to learn, predict and act before the fraud actually happen and this prediction becomes stronger over time with more data and trend analysis. AI, thus, helps to keep a strict check on fraudulent behaviour, suspicious transactions and Potential future attacks.
Towards the Future:
Many FinTech companies have understood that traditional banking and investment avenues will quickly phase out. A report by Blumberg Capital reveals that a 57% of Americans believe that financial institutions will no longer exist in their present form within the next couple of decades
AI, in spite of being gigantic and powerful, is still in its early stages and has hurdles to overcome. And so is the future of FinTech companies; a lot to implement, a lot to offer and a lot more exciting. Ai surely brought days of smarter trading and personalized experience but a lot is still hidden and will be uncovered with days to come.