The world of technology and finance is constantly growing and changing.
With data on overload and limited processing power, the Fintech industry is finally ready to meet with AI and we’re excited.
Turns out we’re not the only ones.
In a recent Accenture poll, 79% of bankers believe that AI will revolutionize customer service and banking. 76% believe that AI interfaces will be the main contact point between customers and banks within the next three years, and 71% have faith in AI being the face of their brand[i].
The beginnings of these relationships are already starting to show their prevalence. In the Indian city of Chennai, a robot called Lakshmi tells customers of the City Union Bank about their account balances and interest rates. In the U.S., HSBC members can question the bank’s virtual assistant Olivia about security and other subjects[ii]
Three different technologies are encompassed with AI: Language Processing allows computers to “talk” with humans, Machine Learning allows computers to compare information seeking out patterns, similarities and differences, and expert Software Sytems. Each of these technologies, learn from experience and interaction with humans and behave in ways that simulate the human brain.
So, how can AI and Financial Institution work together in the next level of Fintech? We outline some of the ways here:
Fraud Detection Forecast to become a $3B market by 2020, AI uses algorithms and strong data power to mine and analysis massive amounts of data tracking anomalies, patterns and more. AI can also help ensure compliance and that other regulatory practices are followed.
Risk Management & Prediction The ability of AI to mimic the human brain will prove invaluable when it comes to insurance and lending risk assessment such as loans, credit scoring and scenario analysis.
Investment Strategy AI uses algorithmic trading and investment tools to accurately forecast and predict market trends and predictions.
Market Research Accurately mimicking human traits in certain scenarios, AI can log and analyze current market data and follow-throughs.
Security AI technologies offer stronger authentication systems, such as Voice Recognition and Natural Language Processing. Tokenization (i.e. cryptocurrencies) allows for anonymity, where if a person stole the token, they wouldn’t be able to identify the person who the information belongs to.
Automation AI technologies will help reduce error and mitigate risk while improving forecasting results and efficiencies. Optimization and Cost Reduction through customer service and AI.
Customer Service Chatbots and Mobile App assistant help monitor finance and provide instant quotes and information (such as Capital One’s help from Amazon Alexa who helps people check their accounts and pay credit card bills).
These are some of the top ways that we see AI and Finance coming together in the next wave of the FINTECH industry, however we’re sure there are many more we haven’t thought of. How do you think AI and Finance can work together? Let us know if the comments below!