Fintech has gradually replaced the physicality of financial services and banking, allowing users to conduct business from the palm of their hand. Despite the significant ease and instant gratification behind fintech, replacing customer service with technology is a growing concern. However, the integration of artificial intelligence into fintech has nuanced this technology to algorithmically provide more customized, accurate, and protected financial services in several different sectors. Here are specific examples of how AI and fintech in conjunction have concocted powerful tools in banking and investing.
The Banking Industry
The banking industry’s first revolutionization through fintech allowed financial services such as payments, transfers, balance checks, and more to be done completely digitally. Combined with AI, we now have capabilities in personalized customer service, fraud detection, and financial data modeling. For example, advanced customer service technologies allow quicker problem resolution instead of having to speak to a representative on the phone. AI’s ability to “learn” through patterns has been a game changer for fraud detection to warn users of unusually large transactions or other suspicious activity based on deviation from usual habits. Finally, since AI is extremely useful for handling large amounts of data to automate tasks, features such as instantaneous credit score calculations and predictions are provided to users.
Investing
In addition to managing your money, AI and fintech advancements can be utilized to grow your money in the stock market, without the glass ceiling that is human psychology and bias. Recently, I was researching algorithm trading APIs which have given the speed and strategizing of placing trades an infinite upper bound. AI’s ability to identify and analyze patterns by referring to hundreds of market data sources gives it an upper hand over the human brain due to its accuracy and efficiency. AI can replicate the most human tendency of decision making to make trading decisions. Additionally, AI takes advantage of minute changes in stock prices that happen in the span of milliseconds to place trades.