Today you can use artificial intelligence every day even if you don’t
notice it. Virtual mobile assistants, chatbots, and others – all these
technologies are already integrated into a large number of mobile devices. But
apart from the fulfillment of common tasks, AI can help you deal with financial
issues as well, and you can do it successfully. How can AI be applied in
FinTech? Our goal is to find out it.
Capabilities of AI in the financial sector
There are a few main ways how AI is used today in the financial world.
We list all of them.
1) Advanced customer service
The process of communication between employees of financial service and
an ordinary customer is rather easy – it can be done with the help of online
chat or phone. As a rule, such specialists can really help you solve main
issues, but we cannot exclude human factor – people can make mistakes,
and also it can be difficult sometimes for them to give you a right piece of
advice. That is where AI can come to the rescue. Today in customer-support
interaction two technological solutions can be offered.
We are sure you heard about chatbots. They are used in many fields, and
financial field is not the exception to this rule. What’s a special about
chatbots in FinTech? First, chatbots work 24/7, they can notify users of any
changes concerning their financial account or transaction. Also, users can
speak with chatbot when employees are not available, and it can reply to main
questions. Users can ask chatbot help them manage the account, and it can work
with claims if they arise.
Simply put, chatbots’ goal is to provide users with all required
information they need. Users don’t spend a lot of time waiting for employees to
contact them, they can get solutions of the problem regardless of time and
date. Properly developed chatbot can attract more users and increase the trust
to a certain product.
These virtual assistants are applied mainly in the financial field and
they play a major role for today’s investors. Using robo-advisors, investors
can check how high is the risk if they invest money in that or another deal.
Also, robo-advisors can help you choose a right strategy for investments.
Thus, if you are the person who is engaged in stock exchange,
robo-advisors are the ones you need without any doubts. The cost of
robo-advisors is much lower than the cost of human specialists. If you have a
financial service that requires the availability of robo-advisors, you should
use them as it will make your business more attractive.
2) Fraud detection
This subject is very topical since we all want to keep our funds safe,
right? And artificial intelligence can be the first technology that will help
us do it. The matter is that AI-based fraud prediction system can learn
millions of possible fraud attacks, memorize them and analyze.
Moreover, this system can work round the clock, any fraud attack will be
blocked quickly. Apart from this, the system learns the way how customer acts,
and if it detects any deviations from a habitual manner.
If you integrate AI into your financial service to protect it, you will
protect your customer from any unwanted attacks, and it will be an additional
bonus to your service.
3) Lowering the risk in P2P lending
P2P lending organizations can also benefit from AI since they can
analyze the behavior of customer and detect all potential risks in cooperation
with a certain customer.
When a customer plans to borrow money, nobody knows how reliable he or
she is. So AI-based system will help to verify it. In addition, neural networks
will scan all documents of the borrower to avoid any possible fraud cases.
Thus, the process of documents verification can be automated completely,
and it will lower the number of possible errors and failures.
4) Improved insurance support
Many insurance companies already start using AI in their working
process. AI can help assess the level of damage if something happened to the
car insured or house. It means that AI makes it possible to increase the level
of customer service in the insurance field and prevent new incidents.
AI-based chatbots can also be used in this field to give good
recommendations to customers. AI enhances your insurance service significantly.
5) Enhanced investment analysis
Here AI can become a very useful addition for hedge funds. Such funds
are created for rich investors that are looking for good sources to invest
their money. AI can help automate this process and make it more secure and
In the nearest future, AI will be used as a tool to work with stock exchange
operations since it will automate the whole process in future. In this way, AI
can make its predictions regarding prices for tomorrow and perform analysis of
the market. Investors can find more opportunities in hedge funds that will work
with AI – it will bring more profit for them.
AI-based startups for FinTech
Let’s take a look at a few successful startups in the financial sector
that already use AI to the fullest.
This startup was launched by London-based entrepreneurs a couple of
years ago. How does it work? Its main goal is to assess credit scoring of
people that don’t have a credit history or their history is already
deteriorated. Artificial intelligence helps admins understand borrowers, how
reliable they are and whether P2P lenders can lend money to them or not.
This company is a P2P lender that actively uses AI in their service.
Their company is situated in the USA. They created AI algorithms that can assess
all risks of lending money to a certain customer, and it allows managers of the
company to give loans very fast.
Kasisto startup will be good for everybody who wants to ask any
questions regarding banking issues. It has integrated chatbot that can answer
voice questions and written ones very accurately. Its database numbers about
few millions of ready answers to all questions regarding banking. All banks and
similar financial regulation should use this chatbot to make their business
Why do you need AI in FinTech?
As you can see, AI has a great potential to be used in your financial
services. Technologies are developing, and artificial intelligence becomes
something common for us. The financial area can really benefit from AI and
smart chatbots and robo-advisors will tell you how you should spend your money
wisely, and how you can make money with bots.
Actually, AI will simplify our life and make all financial processes
more secure and faster. So keep it in mind if you still have any doubts!
Click here for the original article from Payments Journal.