High Value Uses of AI in Fintech
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The drive to eliminate human fallibility has made artificial intelligence driven to the forefront of research and development. Its applications range from sorting what gets shown on your social media newsfeed to self-driving cars. It’s also expected to have a major impact in Fintech due to potential of game changing insights that can be derived from the sheer volume of data that humanity is generating. Enterprising ventures are banking on it to expose the gap in the market that has become increasingly small due to competition.
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High Value Uses of AI in Fintech
- 1. wwww.digitalerra.com High Value Uses of AI in Fintech Dear readers, the 3rd part of Fintech series focuses on the role of Artificial Intelligence (AI) in the space of Fintech Services.When it comes to fintech, the idea is to create smarter AI that helps finance work better for financial sector workers, investors and anyone who simply wants to figure out the best way to pay their mortgage. Needof AI The drive to eliminate human fallibility has made artificial intelligence driven to the forefront of research and development. Its applications range from sorting what gets shown on your social media newsfeed to self-driving cars. It’s also expected to have a major impact in Fintech due to potential of game changing insights that can be derived from the sheer volume of data that humanity is generating. Enterprising ventures are banking on it to expose the gap in the market that has become increasingly small due to competition. Wide Range of Fintech Applications AI has a wide variety of consumer-level applications for smarter and more error-free user experiences. Personal finance applications are now using AI to balance people’s budgets based specifically to a user’s behavior. AI now also serves as robo-advisors to casual traders to guide them in managing their stock portfolios.
- 2. wwww.digitalerra.com For enterprises, AI is expected to continue serving functions such as business intelligence and predictive analytics. Merchant services such as payments and fraud detection are also relying on AI to seek out patterns in customer behavior in order to weed out bad transactions. By using smart agents that can examine and crunch data about individual behavior and compare to broader datasets, small and big businesses could have the ability to deliver personalized financial services as a scope and scale never possible before. 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. AI can also power technologies that overlay humans to supply worker’s activities with a tracking and oversight mechanism, helping with compliance, security, and the observation of employee actions. AI in Fintech Market
- 3. wwww.digitalerra.com Companies on the market map fall into 9 main categories: 1. Credit Scoring / Direct Lending: Companies in this category use AI for robust credit scoring and lending applications. Notable companies include Affirm and ZestFinance. 2. Assistants / Personal Finance: Companies in this category rely on an AI chat bot and mobile app assistant applications to monitor personal finances. Notable companies include Digit and Kasisto. 3. Quantitative & Asset Management: Companies in this category employ AI algorithmic trading and investment strategies or tools. Notable companies include Sentient Technologies and Numerai. 4. Insurance: Companies in this category use AI to quote and insure. Notable companies include Lemonade and Cape Analytics. 5. Market Research / Sentiment Analysis: Companies in this category use AI to efficiently research and measure sentiment. Notable companies include Dataminr and Alphasense. 6. Debt Collection: Companies in this category use AI to improve creditor collection of outstanding debt through personalized and automated communication. TrueAccord and CollectAI are included in this list. 7. Business Finance & Expense Reporting: Companies in this category use AI to improve basic business accounting, including expense reporting. Notable companies include AppZen and Zeitgold.
- 4. wwww.digitalerra.com 8. General Purpose / Predictive Analytics: Companies in this category use AI for general purpose semantic and natural language applications as well as broadly applied predictive analytics. Notable companies include Opera Solutions and Kensho Technologies. 9. Regulatory, Compliance, & Fraud Detection: Companies in this category use AI to detect fraudulent and abnormal financial behavior, and/or use AI to improve general regulatory compliance matters and workflows. Notable companies include Trifacta and Digital Reasoning Systems. The future of AI in FinTech Fintech has a base of technological prowess in the technologies supporting AI and several immediate high value uses. Initially, AI was used more in backend technology settings to power large scale decisions in financial analysis, trading and lending, but now it is becoming a technology that expands how everybody interacts with financial services companies. Possibly, it’s an artificially intelligent agent that will help deliver cheaper, private services that are better and faster.