It is believed that the financial firms were the early adopters of the mainframe computers, the regional database, and yes the next level of computational power. Artificial intelligence today helps the financial organisations in solving the major problems and thereby increasing the efficiency of their workforce. It also helps in improving the results by applying the right methods that are derived from the human intelligence beyond the scale.
The computational race from the last two decades have revolutionised fintech companies. The technologies like Artificial intelligence, Big Data Analytics, Neutral Networks, Machine learning and evolutionary algorithms have allowed them to crunch, diverse and deep the data sets than ever before.
During the early ages of banking, the bankers believed to have a personal connection with all their customers, helping them assisting well in their future decisions. But now
when it comes to the digital world the personal connection that they had is lost. And then comes a question can technology help in bringing back this personal connection.
Artificial intelligence to this can be leveraged in bringing back the personal connection.
It helps in processing a huge amount of information to their customers. The data and information gathered are then compared to the suitable products and services that the
customers want. This essentially means that you are helping your customer’s find what is right for them, and hence can achieve customer satisfaction at a higher level.
How Are Fintech Companies Making Potential Use of Artificial Intelligence
Accurate Decision Making
The data-driven management decisions taken at a lower cost generally lead to a different style of management, where the insurance leaders and the future banking agents will have the right to question the machines rather than the human experts. Machines will then help them to analyse the data coming up with recommended results helping the leaders and their subordinates to take better decisions.
Fraud Detection And Claims Management
The analytics tool help in collecting the evidences and analyse the data that is necessary for the conviction. Artificial intelligence tools to this then learn to monitor the users’ behavioural pattern, identifying rarity and warning signs in terms of fraud attempts and incidences. Claims management can then be built using the different techniques claim management through machine learning.
By leveraging artificial intelligence and handling a huge data within a smaller period of time, the insurers can then automate handling the entire process of mechanism. This
will even help in reducing the claims, the overall processing time, and handle cost while enhancing customer experiences.
Chatbots In Financial Services
It is important to note that artificial intelligence does not only have behind the scene roles in the business world but is also allowing them to take a variety of internal and external communications. However, the artificial intelligence Chatbots are not just being used for communication purpose, but are now being implemented by all the financial institutions as self-service customer-facing tools. For example, HDFC bank has created their own AI Chatbots in order to help customers with a variety of tasks and enquiries.
Increasing The Automation Level
One of the most common benefits the fintech companies get to see through AI is automation opportunities. And when it comes to AI reducing the manual expenses, it automatically generates the expenditure and expense report quickly and easily without any errors. Artificial intelligence understands the work-flow of all the business organisations, allowing them to restructure and automate the expense tracking process.
Balancing The Budget Of The Consumers Based On Spending Pattern
As mentioned above, AI plays a very important role in empowering the fintech companies. The technology is now used as financial applications that allow individuals to come forward and balance their budgets, based on their income and spending pattern. In short, AI has been implemented for a variety of processes and has been acting as a robo-advisor for individuals who could cut costs while boosting their bottom line.
To conclude, with a stiff competition in the financial industries today, it is of no surprise that companies are looking and adopting new technologies in order to stay ahead of their competitors. Choosing AI in the fintech world will help in eliminating the human error boosting up the productivity.