Artificial Intelligence is a promising technology for the FinTech Industry driving innovation, personalized, fast and secure services with higher customer satisfaction rate. The AI can track and analyze how a client interacts with their transactions and figure out what they usually do and what they could do in future and can help fintech organizations increase productivity, cut costs, and automate processes.
AI can aid in fraud detection and prevention
67% of organizations believe it would have the greatest impact in the next decade.
The major driving factors for AI adoption is that it increases productivity and reduces the workload of your employees.
Using AI-powered chatbots and NLP, FinTech companies may streamline their communication with clients.
Let’s look at the top 6 ways where AI transforms the FinTech way of execution.
1. Client Risk Assessment:
Client profiling based on risk score is crucial for the finance sector, especially for banks and insurance firms. AI can help in categorizing clients based on the risk attached to the profile. The classification models can be trained with historical or pre-labeled data using AI technologies like Artificial Neural Network (ANN) and add a rating to the client profile from low to high.
2. AI Chatbot:
Chatbots have benefited all players in the banking industry, from CXOs and CFOs to the end client as it gives contextual information and operates as a human agent, addressing the correct person at the right time and through the preferred channel.
3. Automated Claim Settlement:
Claim processing is one of the most important and time-consuming responsibilities of insurance firms. The entire process starting from customer problems (illness, accident, etc.,), reviewing case validity, initiating the claim process till claim settlement is lengthy and difficult. AI-enabled chatbots might help insurance firms resolve claims more quickly. An AI-powered claims bot can analyze the claim, check policy information, and run it through a fraud detection algorithm facilitating faster claim settlement.
4. Advanced Underwriting:
Insurers may save a lot of time and resources by automating the underwriting process. Insurance bots can look into a customer’s overall economy and social profile to figure out their living habits, lifestyle, risk factors, and financial stability. AI is proven better at scrutinizing obtained data, it can forecast the level of risk involved, safeguard businesses from fraud, and provide clients with appropriate insurance amounts.
5. Algorithmic Trading:
AI in fintech helps in the detection of data patterns faster than human traders. Investment firms are utilizing algorithmic trading to provide portfolio recommendations tailored to each investor’s needs.
6. Fraud & Data Protection:
With new technologies like Whatsapp being incorporated in transactions, fraud and unauthorized transactions are predicted to proliferate in the fintech market. AI can analyze large amounts of data to find fraud patterns, which can then be used to detect fraud in real-time. When fraud is suspected, AI models can be used to flag transactions for additional investigation, as well as add a score to the likelihood of fraud.
AI can make a huge difference in how the financial industry manages processes and operations. To know more about AI application development and use cases, please reach out to us.