Artificial Intelligence’s Future with FinancialTech
The digital transformation in banking and other parts of the economy is increasing at an incredible rate, and with the fintech industry valuing important inventions, artificial intelligence is the key to continuing its expansion. AI is responsible for strategic decision making and a multitude of other features that place fintech at an advantage over traditional industries, and its innovation continues to revolutionize finance as we know it.
Artificial intelligence: All the collective knowledge our species has collaborated on for the past years since our birth is simply uploaded to a piece of metal and electricity in such a manner of artificial intelligence technology; In less than 10 seconds, that same piece of metal has comprehended every fact it took us 6 million years to comprehend ourselves.
The fintech industry is attacked from all corners on many issues; the intricacy of cyberattacks and security breaches, as well as opaque transparency and low trust, are major threats to continuing the streak of popularity that fintech has already gained over the past decade, thanks to Bitcoin and other cryptocurrencies. For these reasons, it seems fitting that the tech-dependency adds to a newfound interest of incorporating AI into every aspect of their products.
“We’re one to two years away from a machine that can debate with you on your investment hypothesis,” said Pavel Abdur-Rahman, Canadian Head of AI and Blockchain at International Business Machines Corporation.
Artificial intelligence can do a lot in terms of increased security. AI and chatbot technologies give quick perceptions as opposed to the regular alarm of volatility amongst the stock market. The diagnostic potential of AI is incredible in both analyzing huge information uploads and interpreting anomalies in different CS systems.
Javelin recorded a total of 56 billion dollars lost by users and businesses in 2020, all because of fraud. AI stands to prevent that too - because of its capabilities with discovering fraudulent behavior and detecting peculiar oddities, AI offers an enhanced process for sensitive financial documentation, enough to decrease security risk.
AI is also powerful in its ability to improve customer service, which happens to be another weak standpoint that’s often attacked in fintech services. Chatbots, for example, are a great resource when it comes to reducing automated calls made by call centers. Transaction processing, charge warnings, and general advice are convenient tools for reminding customers of their financial health status. Erica, the Bank of America chatbot, has amazing ratings and positive feedback from multiple users.
Artificial Neural Networks(ANNs) are computing systems developed by an interconnected set of nodes. They basically mimic the neurons that constitute “eureka” and “a-ha!” moments within our brain, and they can train code based on a user's data and history and use it to classify their profiles on a certain level of risk.
AI has a prodigious grip on investors, enough to the point where debates stretch between them about the advantages of using AI to calculate risk and improve customer experience and satisfaction.
One thing’s for sure: artificial intelligence is only continuing to get better - we see lifelike robots come into all sorts of industries and showcase their benefits and capabilities for people to marvel about. The new phenomenon has not reached a slump and isn’t likely to do so within the next coming years, so fintech’s ability to incorporate it more will be a large asset to it gaining more popularity.
What Does This Mean for the Future:
While the philosophical debate on AI continues to prove to be a bit of a setback due to “ethical” boundaries being reached, AI’s influence on the fintech world is mostly positive, and its usage will only trend upwards in the years to come.