Fintech uses technology to enable financial services that would previously be infeasible. AI can help companies in the financial sector to analyse and manage data from multiple sources to provide valuable insights. Innovation in this space helps financial institutions with improved day-to-day services such as payment processing or loan management as well as uncovering new opportunities in the market.
Some key use-cases include:
Understand Customer Behaviour
- AI and predictive analytics can be used to anticipate customer needs based on historic actions and provide information to clients pre-emptively.
- As an example, a customer requests a transaction history statement over a certain period. An AI system may then interpret this request and anticipate the next request to be made by this customer. This may lead to the system automatically sending, or suggesting sending, the customer’s transaction history statement over the next period or the customer’s summary account statement over that initial period.
- The above exemplifies how AI can be used to minimize the number of requests and loans on a banking institution’s system. Additionally, increased customer satisfaction and time saving is achieved through these methods.
- AI systems are able to be trained on billions of transaction patterns to identify patterns of fraudulent activity by consumers. The system can then create automated alerts to warn companies of potentially fraudulent activities.
- Furthermore, a system may block a particular user’s request or prevent a user from accessing their account if it detects potentially fraudulent activity.
Improved Customer Service
- Banks or insurers may make use of AI systems to customize the menus and offeringsof their user applications to cater for the differing needs of users of different demographics.
- Additionally, these banks and insurers may use AI-powered chatbots which minimizeworkload places on call centres. Through the use of automated scripts, chatbotshandle the most typical and frequent user problems, reducing the number of calls made or emails sent into call centres.