Today you can use artificial intelligence every day even if you don’t notice it. Virtual mobile assistants, chatbots, and others – all these technologies are already integrated into a large number of mobile devices. But apart from the fulfillment of common tasks, AI can help you deal with financial issues as well, and you can do it successfully. How can AI be applied in FinTech? Our goal is to find out it.
Capabilities of AI in the financial sector
There are a few main ways how AI is used today in the financial world. We list all of them.
1) Advanced customer service
The process of communication between employees of financial service and an ordinary customer is rather easy – it can be done with the help of online chat or phone. As a rule, such specialists can really help you solve main issues, but we cannot exclude human factor – people can make mistakes, and also it can be difficult sometimes for them to give you a right piece of advice. That is where AI can come to the rescue. Today in customer-support interaction two technological solutions can be offered.
We are sure you heard about chatbots. They are used in many fields, and financial field is not the exception to this rule. What’s a special about chatbots in FinTech? First, chatbots work 24/7, they can notify users of any changes concerning their financial account or transaction. Also, users can speak with chatbot when employees are not available, and it can reply to main questions. Users can ask chatbot help them manage the account, and it can work with claims if they arise.
Simply put, chatbots’ goal is to provide users with all required information they need. Users don’t spend a lot of time waiting for employees to contact them, they can get solutions of the problem regardless of time and date. Properly developed chatbot can attract more users and increase the trust to a certain product.
These virtual assistants are applied mainly in the financial field and they play a major role for today’s investors. Using robo-advisors, investors can check how high is the risk if they invest money in that or another deal. Also, robo-advisors can help you choose a right strategy for investments.
Thus, if you are the person who is engaged in stock exchange, robo-advisors are the ones you need without any doubts. The cost of robo-advisors is much lower than the cost of human specialists. If you have a financial service that requires the availability of robo-advisors, you should use them as it will make your business more attractive.
2) Fraud detection
This subject is very topical since we all want to keep our funds safe, right? And artificial intelligence can be the first technology that will help us do it. The matter is that AI-based fraud prediction system can learn millions of possible fraud attacks, memorize them and analyze.
Moreover, this system can work round the clock, any fraud attack will be blocked quickly. Apart from this, the system learns the way how customer acts, and if it detects any deviations from a habitual manner.
If you integrate AI into your financial service to protect it, you will protect your customer from any unwanted attacks, and it will be an additional bonus to your service.
3) Lowering the risk in P2P lending
P2P lending organizations can also benefit from AI since they can analyze the behavior of customer and detect all potential risks in cooperation with a certain customer.
When a customer plans to borrow money, nobody knows how reliable he or she is. So AI-based system will help to verify it. In addition, neural networks will scan all documents of the borrower to avoid any possible fraud cases.
Thus, the process of documents verification can be automated completely, and it will lower the number of possible errors and failures.
4) Improved insurance support
Many insurance companies already start using AI in their working process. AI can help assess the level of damage if something happened to the car insured or house. It means that AI makes it possible to increase the level of customer service in the insurance field and prevent new incidents.
AI-based chatbots can also be used in this field to give good recommendations to customers. AI enhances your insurance service significantly.
5) Enhanced investment analysis
Here AI can become a very useful addition for hedge funds. Such funds are created for rich investors that are looking for good sources to invest their money. AI can help automate this process and make it more secure and precise.
In the nearest future, AI will be used as a tool to work with stock exchange operations since it will automate the whole process in future. In this way, AI can make its predictions regarding prices for tomorrow and perform analysis of the market. Investors can find more opportunities in hedge funds that will work with AI – it will bring more profit for them.
AI-based startups for FinTech
Let’s take a look at a few successful startups in the financial sector that already use AI to the fullest.
This startup was launched by London-based entrepreneurs a couple of years ago. How does it work? Its main goal is to assess credit scoring of people that don’t have a credit history or their history is already deteriorated. Artificial intelligence helps admins understand borrowers, how reliable they are and whether P2P lenders can lend money to them or not.
This company is a P2P lender that actively uses AI in their service. Their company is situated in the USA. They created AI algorithms that can assess all risks of lending money to a certain customer, and it allows managers of the company to give loans very fast.
Kasisto startup will be good for everybody who wants to ask any questions regarding banking issues. It has integrated chatbot that can answer voice questions and written ones very accurately. Its database numbers about few millions of ready answers to all questions regarding banking. All banks and similar financial regulation should use this chatbot to make their business better.
Why do you need AI in FinTech?
As you can see, AI has a great potential to be used in your financial services. Technologies are developing, and artificial intelligence becomes something common for us. The financial area can really benefit from AI and smart chatbots and robo-advisors will tell you how you should spend your money wisely, and how you can make money with bots.
Actually, AI will simplify our life and make all financial processes more secure and faster. So keep it in mind if you still have any doubts!
About the Author:
Nataliia Kharchenko is a Technical Writer at Cleveroad. It is web and mobile app development company in Ukraine. We are focused on helping startups, small, and medium businesses create competitive and winning software. I enjoy bringing a digital world closer to people and writing about technology, mobile apps, innovations, and progressive management models.