5 Ways Artificial Intelligence Will Transform Financial Tech
The convergence between Financial Technology (FinTech) and Artificial Intelligence (AI) is massive. Enhanced cognition and social simulation have guaranteed that AI has shifted from the fringes to the center of the discussion. Here is 5 ways AI will transform FinTech:
1. Client Risk Profiling
For financial services like insurance firms and banks, client profiling is related to their risk score, which is crucial. AI techs like Artificial Neural Networks (ANN), the classification models can be trained with previous data to rate the profile from low to high.
2. Improving Human Operators via Automation
FinTech can be drastically enhanced with techs that come under AI, such as Neural Networks, Machine Learning (ML), Data Analytics, etc. AI is a vital feature in financial services; it's driving novel efficiencies and providing value in all FinTech areas.
3. Algorithm Trading
Algorithm Trading leverages a pre-programmed instruction set to analyze data and aid in decision-making swifter than humans. This is done through one of the most flexible technologies - ML. AI holds great potential in this industry, helping in various ways to enhance efficiency, minimize expenses and automate processes.
4. Robust Security
Over the years, AI technology has proved its success in financial technology as it delivers a considerable uplift to security. Today, AI in cyber security generally comes in chatbots that convert FAQs to simulated conversations. Moreover, they can reset forgotten passwords or allow additional access where needed.
5. Enhanced Customer Service
One of the prominent areas of Finance Technology is customer service, which has undergone a drastic improvement by AI. The rising sophistication of AI has resulted in chatbots, virtual assistants, and AI interfaces that reliably interact with customers. In addition, the potential to answer basic queries provides the tremendous ability to minimize front office and helpline expenses.