bankingciooutlook

Top 3 AI Contributions to Fintech

By Banking CIO Outlook | Friday, July 19, 2019

AI in FintechThe finance industry is an early adopter of AI and has started developing novel and unique AI strategies to drive more positive transformations.

FREMONT, CA: The finance industry is the early adopter of relational databases, mainframe computer, and has been awaiting the next level of computational power. Inorganic Intelligence supports fintech companies in solving human problems by enhancing efficiency. The financial sector follows technological advancement with intense curiosity. Big banks have been embracing disruptive technologies like Blockchain. AI is a paradigm-shifting technology that is effortlessly changing the way how the world moves, lives, interacts, and shops. Finance is no exemption, and the industry is just starting to peak at the tip of the iceberg.   

• Digital Financial Advisor

Transactional bots are one of the most prevalent use cases in AI, probably because the range of applications is so widespread across all industries. In finance, transactional bots can be utilized to offer users finance advising services. It helps users navigate their financial plan, spending, and savings. Such service improves user engagement and enhances the overall experience of the user with the financial product.

• Transaction Search & Visualization

Managers are deploying bots to handle user transactional data and its practices, and NLP to detect the meaning of the request sent by the user. Claims could be related to balance inquiries, general account information, spending habits, and more. The bot then concocts the requests and displays the outcomes. The bot offers user-friendly transaction search, facilitating users to search their historical data for a particular transaction with a specific merchant.

• Client Risk Profile                                       

A critical role of banks and insurance businesses’ job is the profiling of clients established on their risk score. AI is an invaluable tool for this purpose as it can automate the categorization of customers depending on their risk profile. Building on the categorization work, advisors can choose to associate financial products for each risk profile and offer them to clients in an automated way.

The technology advances every day, and this list is set to increase. Finance businesses which adopt AI will enhance their operations, sales, marketing, customer experience, revenues, and quality of deals overall. AI gave nativity to a fresh wave of applications and services in the financial business. AI can handle unstructured information well, and there are already AI-based solutions able to detect fraud to improve risk management.

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