When Fintech startups started some years ago, their customer representatives had to stay active on all their social media pages to instantly respond to customers’ inquiries. After realizing that this mode resulted in slow responses and ultimately lost potential customers, they embraced AI. With the advent of chatbots, new Fintech businesses don’t have to battle these problems.
In this article, you will find the answer to the question: “How is AI used in fintech?” If you’re starting up your Fintech, learning how to build a Fintech app should be at the top of your list. With AI, daily activities like payment processing have become easy. Now, let’s explore how AI will help Fintech companies and its application in Fintech-focused companies!
How is AI Used in Fintech: 4 Good Examples
The banking industry has always taken its relationship with customers very seriously. As the world turned digital, a gap was created between the banker and the customer. However, with the combination of AI and Fintech, the long-lost relationship has been restored.
Bulk information about customers can quickly be processed using artificial intelligence in Fintech. The data analyzed using the AI for Fintech will help create services and products tailored specifically for the customer. Below are some ways AI is helping many fintech-based companies:
1. Chatbots
So, “how is AI used in Fintech?” One of the answers is chatbots. By using chatbots, you can drastically reduce the workload on your customer service representative. The questions posed by customers are often very similar and can cause your customer representatives to repeatedly answer questions they’ve responded to. But, that isn’t the same with chatbots.
How do chatbots work? They use complex sentimental analysis to determine the answer to a customer’s question. Chatbots achieve this through AI in the Fintech industry. The basis of the sentimental analysis is for the Chatbot to understand the customer experience with the company’s services. The shortfalls of the Fintech application are determined through the sentimental analysis and are adequately addressed.
Over the years, chatbots have become an excellent example of AI applications in fintech. It helps make communication between customers and bankers straightforward. Chatbots use automated scripts to respond to frequently asked questions of customers.
One of the best features of chatbots is the ability to work round the clock. So, even on days when your Fintech is closed, Chatbots will answer all your customers’ questions. It is undeniable that AI and Fintech are taking center stage as the world advances. Click here to learn how to build your Fintech app!
2. Improved Security
When you deploy artificial intelligence for fintech, you improve your company’s security. There are banking apps you can easily access through facial recognition or fingerprints. What makes this possible? Artificial intelligence in Fintech. In the Fintech security space, biodata and speech recognition will add more protection to the bank app.
AI also offers better security by monitoring the behavioral patterns of the customers. If a customer withdraws a specific amount every time but suddenly goes over their average withdrawal amount, the AI will flag the account.
3. Fraud Detection
Many banks and Fintechs have been subject to fraud and hacks. Fraud results in loss of money and reputation for the Fintech business. This has caused many Fintechs to employ various AI-based methods to stop fraud. So when a fraudulent transaction is noticed on a customer’s Fintech banking app, AI can easily block or restrict the account.
4. Making Decisions
Management of a Fintech company will be much easier if decisions are made using data-driven facts at lower costs. Insurance experts and agents can easily ask machines the same questions they would have ordinarily asked humans. AI machines will analyze the questions asked and return results. The result returned by the machines will aid industry leaders in making better decisions. The ability of AI to help management make better decisions is an essential answer to the question: “How is AI used in fintech?”
Final Thoughts
With this clear insight into how AI is used in Fintech, there is no doubt that Artificial intelligence has taken a firm place in the Fintech industry! Artificial intelligence is used to satisfy customers, check credit risks, and detect fraud. AI-based Fintech companies use AI to solve customer queries at neck-break speeds. Even though AI still has a long way to go, it has come to stay!