The presence of Artificial Intelligence (AI) in all areas of our lives is increasing, and the finance industry is no exception to this rule. The researchers predict that artificial intelligence in the financial technology market will register a CAGR of 25.3% from 2022 to 2027. The impressive growth is justified by the fact that AI helps to overcome many challenges that conventional software or hardware cannot handle.
So explore this article to learn how AI impacts FinTech and how you can use it to reach your business goals.
AI-based Solutions for FinTech
So let’s start with discovering how AI is improving the FinTech sector.
A prominent place in financial institutions is occupied by communication with customers. So, it can be carried out using a call or chat with an operator, but today this is not entirely effective. There are often not enough operators, they can make mistakes, or their fatigue can adversely affect the service. Also, the maintenance of large staff is quite expensive. Artificial intelligence offers two solutions to this problem:
- Chatbots. They significantly increase customer loyalty, allowing customers to quickly receive the requested information, notify them of changes, and help solve fundamental problems.
- Robo advisors. They are a subspecies of chatbots explicitly used for FinTech. Virtual assistants replace human staff and provide clients with full support on any issues.
Artificial intelligence is an excellent assistant in the struggle against financial fraud. It can monitor all transactions 24/7 and remember thousands of possible fraud options and patterned behavior of an ordinary client. Therefore, in case of the slightest violation, AI will immediately detect it. In this way, you can ensure the safety of yourself and your customers. Also, having confidence in fraud protection, customers will trust you more.
Credit risk assessment
A similar AI algorithm is also used to reduce risks when issuing loans. Thus, technologies can analyze information, calculate risks, and make optimal decisions that guarantee security for the banking system and the client.
Artificial intelligence is also successfully expanding into the insurance industry. AI can efficiently process large amounts of information, conduct a complete analysis, and produce the desired result. Together with Big Data technologies and the Internet of Things (IoT), artificial intelligence allows insurance companies to provide customers with first-class service.
Investment funds are also incorporating artificial intelligence into their software. AI algorithms allow you to conduct a daily complete market analysis, making the correct decisions regarding actions in the investment market on a particular day. Thus, the risks are significantly reduced, and the benefits are increased.
We can conclude that artificial intelligence in FinTech plays a considerable role. That is why many interesting startups using this technology have already been created.
FinTech Startups to Consider
Today we will explore some popular startups, so you have a better idea of their functionality.
The startup was created in 2014, and its primary goal is to determine the solvency of customers with a poor credit history or no credit history. Based on the survey, artificial intelligence concludes the applicant’s reliability and makes a decision. It also uses API Credit to provide access to other loan originators.
Based in Atlanta, USA, this company is one of the largest AI FinTech companies. Their clients are individuals and small companies. Artificial intelligence, using Big Data and Machine Learning (ML), analyzes information about the borrower and provides a quick loan through the website in case of a positive response.
This startup is a chatbot that supports voice queries. AI knows the answers to more than a thousand questions and quickly provides them to users. Thus, this solution helps to significantly improve the interaction of Internet banking with customers, increasing the satisfaction of the latter from working with the banking system.
It is a special kind of hedge fund. This startup cooperates with anonymous developers and makes transactions with the help of ML. Every week, the service provides forecasts, and if the forecast is successful, its creator receives a reward in the form of Numeraire tokens, which can later be exchanged for bitcoin. The startup uses Ethereum smart contract technology.
This is not the whole list of modern AI startups in FinTech. You can create a startup that will improve your business and conquer the market. If you already have an idea, you can contact a software provider to help bring it to life. If you don’t know where to find app developers for your AI startup, try to get acquainted with various sites that provide information about software companies, reviews, and ratings of their customers. This will help you make your choice.
Potential of AI for Your Financial Services
Let’s add a few more words about why AI is now great for FinTech projects. Since this area is always in demand, it is imperative to provide customers with the best service to stay ahead of competitors. Artificial intelligence:
- Offers a higher speed of interaction with the client
- Helps to avoid human errors
- Saves time and costs
To create your own AI solution, you can start by developing a Minimum Viable Product (MVP). This way, you can reduce the initial investment. An experienced technical advisor will tell you how to build an MVP app using artificial intelligence and how to develop this project in the future to achieve maximum success.
If you want to improve your FinTech company or have been thinking about your startup in this industry for a long time, AI will help your project to be a market leader. Share your idea with a software provider with extensive experience in technologies like artificial intelligence and impressive expertise in FinTech to get an outstanding AI software solution.