Fintech attracts innovation into the financial sector as a whole. Hard to imagine it being the other way around, as Fintech means financial technologies. And AI for Fintech is no exception. The rise of financial technologies has visibly grown over the last couple of years. Traditional banking will eventually find its way into history, as Fintech companies’ revenue will increase. 

AI in Fintech can predict user behavior by integrating a combination of AI tools for Fintech and Machine Learning algorithms, which allows users to get detailed insights into their data. Such tools are also commonly known by the name of AI APIs and are used by Fintech companies.  

The Benefits of AI in Fintech

There is a great line of similarities taking place between AI and Fintech. AI in the fintech market is bringing back the personal approach to banking, previously lost due to the prevalence of transnational banks. Here are a couple of ways how AI for Fintech can improve your business.

1. Credit Risk Inspection

Credit scoring evaluates the customer’s success and ability in paying off debts. AI Fintech companies use AI-powered credit scoring to make the calculations more accurate. Ranking one’s ability to pay debts requires lots of data to be processed, including total income, credit history, transaction analysis, and work experience. Artificial Intelligence can not only provide data-based, individual and reliable scores, but it can also analyze real-time metrics to give more customers access to additional finances if they need it. 

2. Banking Fraud Elimination

AI in the Fintech market can detect specific behavior patterns and actions which differ from normal, and monitor them in real time. This allows acting on fraud attempts quicker and more efficiently, saving the staff time.

3. Increasing Safety

Artificial intelligence in the financial world is the driving force behind many solutions to improve security. Face and fingerprint recognition are only two of many examples of how AI in Fintech can protect the company and user data.

The Value of AI in Fintech

As the digital world is flooded by more and more users every year, the only reasonable decision for a bank would be to join them. Alongside the value of real-time monitoring and enhanced data sensitivity, AI for Fintech solutions can improve customer support and decrease the workload. The worldwide AI in Fintech market was valued at e.g. $8.23 billion in 2021.

AI-powered analytics provide AI Fintech companies with more revenue sources and savings on operations time. In an industry where data is essential for predicting customers’ next steps and optimizing the workflow, AI tools are the key. Speaking about numbers, more than 67% of the zest Fintech market believes that AI will overtake the industry in the near future. 

Statistics show that more users come to banks for personalized finance solutions, yet, only 45% of customers around the world have access to a personal assistant in banking. AI solves this issue by giving the user sensitive and reliable analytics of their finances and future income in real-time, not only expediting the process but also reducing the need for additional staff. 

AI algorithms do not tolerate mistakes. Fintech AI companies are benefiting from it by reducing security leaks, fraud, and errors with Artificial Intelligence Fintech detection tools