AI in Fintech

How is AI affecting the financial industry?

At its' core, FinTech is the digital innovation in the financial industry.
Just a few years ago it was just about revolutionizing and facilitating payments and transactions.
But with the revolutionary changes in the Internet and computing technology in the past years, the field of FinTech has witnessed exponential growth.

Now Digital is the new normal for customers and the next big thing is the integration of AI
which may allow fintech to reach a completely different level.

Artificial Intelligence
At its' core, Artificial Intelligence is building smart machines capable of solving problems that typically require human intelligence. In recent years it has become a trend, a wide variety of sectors have started implementing automation, machine learning, robotics, analytics and other AI.

AI in Fintech
Just like many other industries, AI has revolutionized the financial industry. Not only does it improve the speed and precision in the industry, but it also has impressive scalability capabilities compared to human intelligence.

Main features of AI in Fintech:

  • It detects changes in data patterns and tunes the model by itself, therefore no data scientist is needed to keep the model running.

  • If the quality of the extracted data is bad it can still create useful insights that may affect business decisions.

  • When new data is coming in there is no necessity to store, process and transform it before analytics can be created, data can simply go through the neural network and the AI engine can pick the necessary characteristics of the pattern.

  • AI can handle unstructured data which is essential in technologies like face and voice recognition.

  • Some AI Applications:

  • It can help create real-time target marketing as it plays a very important role in predicting the company's product propensity based on the customer's behavior data in real-time.

  • It's the key to natural language processing which is used to help computers communicate with humans in their own language.
    It's used in Chatbots, Speech-to-text and text-to-speech conversions, Machine translation and more.

  • KYC using Image recognition. AI can automatically match a customer's selfie against a photo of their identity document to prove their identity.

  • It is just the beginning for AI as a variety of companies invest in its' development while it is getting smarter every single day and its' necessity increases.

    Author: Mike from Infinittex
    Date: June 9, 2020