bankingciooutlook

Embracing AI in the FinTech Industry

By Banking CIO Outlook | Thursday, November 22, 2018

Financial technology has grown at an exponential speed and is dominating the financial services landscape globally currently. This sector involves companies that utilize different technologies in financial systems. Fintech includes all possible trends in investments, retail banking, financial literacy, and even bitcoin, leading to a digital revolution. FinTech offering SME finance in Australia is expected to add about $1 billion to the economy by 2020, stated a report by Frost & Sullivan. Financial services companies have been leveraging artificial intelligence for many years now. With the proliferation of big data, the industry has seen radical transformation through analytics. Aggregation of AI with big data brings more innovative and smart solutions.

According to the prediction by IDC (International Data Corporation), the world will create 163 zettabytes of data per year by 2025. Efficiently providing un-organized data leads to short-term thinking in making practical decisions. As the data is digitized and increasingly available, AI can gather intelligence at the corporate and government sectors and leverage AI in decision-making processes at the highest level. U .S. fintech companies are exploring the possibility of building intelligence systems. This drives the decision making tactical, financial, and strategic in both the fintech and government sectors. In the near future, AI will be used as a tool to work with stock exchange and automate the entire process. AI will be able to make accurate predictions and perform a thorough analysis of the financial marketplace.

At present, companies like Watson, Alexa, Siri, DeepMind, and Cortana are leading the AI world. Due to high costs and difficulty in data utilization, the developers struggle to create innovative solutions. The future of fintech lies in unlocking the total potential of AI. Artificial intelligence innovations are creating chances for faster and more agile systems. It is a known fact that digitization is rapidly influencing traditional banking sectors and increasing the cybersecurity threats and vulnerabilities. With the help of emerging technologies like blockchain and analytics, enterprises can create an active defense mechanism against cybercrimes. 

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