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Artificial intelligence (AI) is reshaping the Fintech industry like never before. It has become more prominent recently due to the availability of a vast range of data and more affordable computing power. It helps fintech companies and banks to stand out of the box and achieve desired business growth. AI applications are aimed at meeting the critical needs of today's financial sector, such as improved client experience, cost-effectiveness, real-time data connectivity, and increased security. This article will discuss the top 10 AI applications in the Fintech industry.
This AI model is developed by the company Temenos AI. Temenos is the first to bring transparency and explainability of AI-automated decision-making to the banking industry. The credit scoring model reduces credit risk with the ability to increase pass rates while maintaining or reducing current default risk.
Decision-making by customers on both large and small investments is essential for financial institutions. Henceforth, financial sector organizations are suggesting customers with sources where they can get more revenue. This is possible with machine learning performing analysis on structured and unstructured data.
Credit card companies use machine learning technology to diagnose high-risk customers. The application includes a predictive, binary classification model to find out the customers at risk. Machine learning predicts user behavior and designs offers based on demographic data and transaction activity.
Robo-advisors are not only low-cost alternatives to traditional financial advisors, but they can also facilitate financial counseling for a large group of people, helping them to make more informed financial decisions. Besides, data-driven AI-powered Robo-advisors can also recommend investors scaling their portfolio, retirement, estate planning, etc., which in turn can make the account opening process an interactive experience.
In the finance industry, AI can be used to examine cash accounts, credit accounts, and investment accounts to look at a person's overall financial health, keep up with real-time changes, and then create customized advice based on new incoming data.
Artificial intelligence allows finance companies to completely replace manual work by automating repetitive tasks through intelligent process automation. This enables a better customer experience and reduces costs. Furthermore, AI accesses data, interprets behavior, and recognizes patterns which will better the functions of the customer support system.
Loans made possible by AI and ML technologies greatly decrease operational downtime and the probability of mistakes. Furthermore, the candidate assessments and, by extension, the ultimate judgment will be devoid of human prejudice through this medium.
AI also helps banks to process huge volumes of data so as to predict the latest market trends, currencies, and stocks. Advanced ML techniques evaluate the market sentiments suggesting investment varieties. AI is not limited to it, but investors can also know the best time to invest in stocks and make them aware of any potential risk.
Underwriting services are provided by insurance companies, primarily for loans and investments. An AI-powered model can provide a real-time evaluation of a client's credit risk, allowing advisors to construct the best possible deal.
Contract analysis is a repetitive internal task in the finance industry. Managers and advisors can delegate this routine task to a machine-learning model. Optical Character Recognition (OCR) can be used to digitize hard-copy documents. An NLP model with layered business logic can then interpret, record, and correct contracts at high speed.
