The fintech industry cannot stand aside from the development of AI technologies.
Many large banks and financial institutions already have their own AI strategies and specialized departments.
According to research, in about ten years, banks will be able to reduce their costs by about 25% thanks to AI, which is the equivalent of $ 1 trillion. At the same time, the lack of qualified specialists and developers in the field of AI undoubtedly hinders the process of developing technologies in the financial sector.
When did fintech start to arise?
The very first wave of financial technology development such as client applications, cloud storage services, various computing platforms, etc. was the use of smartphones. It was around this time that the term fintech began to be used.
With the advent of artificial intelligence, the second wave of financial services development was launched.
AI is able to simultaneously process a huge amount of data, detect threats, respond to cyberattacks, assess risks, identify video, graphic and audio content, and determine geolocation.
Banks use AI to increase customer engagement and improve service. Thanks to chatbots, the client can get real-time support. Some big companies have even developed AI assistants, similar to Siri or Alexa, that can solve a wide range of issues.
AI and banks
Here are some examples of the use of AI that have already been implemented by the largest banks (JP Morgan, Citibank, Wells Fargo):
- full automation of the analysis of financial agreements. Previously, this analysis required hundreds of thousands of hours of human work.
- assistance in choosing a financial product and financial management.
- Creation of a virtual AI assistant, which is implemented in the ATM network and all online services of the bank.
- fight against fraud in online banking, automation of applications and appeals.
All this gave rise to the development of a huge number of startups in the financial technology sector. Using artificial intelligence, their goal is to create new services in order to improve and facilitate banking processes. The activities of startups in this segment can be divided into several main areas:
- data protection;
- consulting services, service;
- management of financial assets;
- analysis, control and execution of transactions.
At the moment, AI is the most effective tool for protecting against fraudsters, as AI algorithms are constantly updated and trained, accumulating data with which they work.
And the benefits of AI in personal finance management can now be appreciated even by a user who is far from digital and fintech. In addition to the Wallet in the smartphone, almost every banking application, based on the collected data, provides an analysis of expenses, dividing them into categories, helps in financial planning and can suggest what you can save on in the next month.
Here are some successful startups using AI technology:
AlphaSence is the largest search engine in finance and banking. AI helps you find financial information, company data, breaking news and research at lightning speed.
DataVisor - Uses AI to detect fraudulent activity. Helps protect against financial attacks, identify fake transactions and accounts.
Alpaca - analyzes the financial market and helps to make forecasts, price changes, based on typical scenarios.
What other examples of the use of artificial intelligence do you know? I would be happy to answer any questions or submit your project to my team at Astorts Group for evaluation.
Alessandro Rocco Pietrocola is an entrepreneur and investor based in London and operating mainly in Europe, Asia and Oceania with main focus on UK, Baltic Countries, Russia, China, Hong Kong, Malaysia, Singapore, Middle East and New Zealand as area of interest! At the moment is the CEO of Astorts Group. He is an UK FCA (Financial Conduct Authority) Approved Person and is has great experience as director of regulated companies. He uses to dedicate part of his life to inspire others and help them achieve the most out of their life. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.