Artificial Intelligence is the science which aims to make intelligent machines work and behave like humans – not completely but it emphasizes on using machines to understand human intelligence. It is an ever-evolving technology that is providing support to the other technologies to make human life easier and better than ever.
The term ‘Fintech’ is a hot buzzword nowadays which is derived from the words ‘Financial’ and ‘Technology’. It is a broad term which refers to the innovative use of technology in the field finance. In other words, to make the most of technology in the financial services or financial aspects of the business, point towards Fintech.
Basically Fintech tends to change the way in which companies interact with their customers. It is changing the lives of both consumers and organizations in many ways. Whether it is cashless payments or helping in growth by providing analytics Fintech is proving to be a potential game-changer in today’s World.
Fintech and AI
The Financial industry is resistant to even a small change. Probably traditional financial institutes like banks are too big to adopt any change or they are afraid of even a small risk that can prove to be dangerous. The rise that Fintech has achieved is mainly due to AI. It is the key, that through AI, Fintech is now competing with its competitors in the Finance World. Following are the Impacts that this technology trend is trying to make on Fintech to make it better.
In the field of finance security is always a major concern. The finance firms never compromise on security. AI provides a foolproof security to the companies by keeping an eye on frauds and suspicious transactions. Through machine learning, AI analyses security data and improve its predictions, making sure that all the processes remain secure.
Automation is the most common benefit that AI has in almost every domain. AI tools are smart enough to understand the workflows and to generate automated reports. The manual work is reduced and processing and calculation are automated efficiently and error-free.
Processing, verifying receipts and other documentation, is time-consuming. AI reduces the human effort and saves time by processing the information quickly and with accuracy. The capability of AI to remember patterns reduces the processing time.
Reducing Human Error
Processing data and documentation requires patience and full concentration. Often there are chances that it may lead to human errors. AI is not yet a replacement for human, but it has the ability to validate and verify information and data with high accuracy, resulting in the reduction of human errors.
In today’s World the competition between the organizations is tough. To stay ahead in the competition every single move should be smart. AI plays an important role for the organizations to prepare for such moves. A large volume of data is processed through which AI provides data insights. These insights help in making strategies to increase the productivity and revenue. Other than that they help the organizations to be on the top of charts.
Helping Small Scaled Companies
AI plays a crucial part in the success of a company. Companies take calculated steps in order to achieve more and save time and resources. This technology is now affordable and accessible for the small and young companies. Thanks to AI they are able to compete with the big players of the game.
AI tools are also being used nowadays to balance the budgets according to the investments, costs and available resources. Hence organizations are able to know the areas where they need to cut down costs and increase the revenue. Not only this predictive advices by AI makes them aware of where they should spend money. They also get to know of probable consequences of all cases.
Another reason to thank AI is the offering of chatbots that can intelligently engage with customers to answer their queries, taking orders, sending notifications and providing support. This reduces the load and saves time for the customer service providers.
In addition to the above pros investors across the World are highly interested to invest in Fintech companies because of their belief in their potential. Fintechs are getting more popular than the traditional financial institutions, all because of AI.
In a Nut Shell
All in all adopting AI in Fintech has allowed the companies to boost their productivity, save time and efforts and processing data with efficiency and with errors. In fact, whether it is Fintech or any other domain, we are witnessing companies taking steps that can make them give tough time to their competitors. The popularity of AI is increasing day by day and companies do not hesitate to adopt this pre-eminent technology after realizing how it adds value to the business. Also, its affordability has allowed the small scaled companies and individuals to enjoy its benefits too.