AI, ML and FinTech Shaping the Future of Financial Services
It was an intense ride for the financial sector in the past decade, where the IT revolution and an alarming increase in consumer wants have pushed the car into first gear. The introduction of capabilities like AI, ML, and FinTech has caused a paradigm shift in the ideas and limits of thinkers. These superpowers are stirring the future of financial services with innovation where automation will replace intensive manual processes.
AI powering the financial game
Artificial Intelligence is constantly unlocking revenue and growth opportunities on the digital financial front. Considered as the new engine of transformation in the modern age, it helps financial firms in manifold ways from improving security to transparency to minimization of expenses related to operating a device and mechanizing manual exertion through skillful techniques.
Contributing as a meaningful evolution for banks, digital banks are witnessing a breakthrough with multiple benefits. Reduced operational costs, enhanced process efficiency, improved customer relationship, consumer lending to credit scoring, coupled with enriched banking experience are some of the factors that have led the banking sector to implement AI at scale. For example, Bank of America with its launch of the chat-bot feature allowed consumers to make informed decisions on saving money, investment options, and regular updates. However, the con attached to this is that the cost of purchasing such complex machines and maintaining them is an additional burden competitive businesses have to shoulder.
A Catalyst for Digital Operations
Through Machine Learning, the future of financial services rests in PCOs that aim at shredding away manual operations and maximizing AI-generated digital responses. With Robo- Advisers, Automated Churn Prediction, and an iron security system, ML is constantly introducing new levels of communication in the fast-paced world of cutting-edge technologies.
Leading financial institutions are already using ML technology for fraud detection. A leading investment company in Asia, Darktrace implemented AI and ML to ensure round-the-clock protection from cyber attacks, frauds and cyber-crimes.
FinTech as a Candle-holder of the Unbanked Populace
With AI and ML already driving the financial services, the ongoing pandemic has also turned FinTech into a ride-or-die platform for transactions, supplemented by the recent upshot of e-commerce. FinTech allows for easy, secure, online transactions through extensive cloud computing and Big Data configuration.
By securing a global transaction market, FinTech has been successful in opening the door to a reformed platform. It connects people through digital wallets, provides secure merchant processors, enables secured contactless payments, and is constantly unleashing the power of inclusive financial growth across borders. Some of the names that can expect thriving in the future are Chime (Digital bank), Brex (digital credit cards), Braintree (payment gateway by PayPal), Verifi (payment security) among others.
Learn how financial institutions will drive the future of finance for their customers. Investment in new technologies and result-driven strategies is certain to gain more market share and heightened customer satisfaction.