How FinTech is reaping the benefits of Artificial Intelligence as Financial Technology

Fintech or Financial Technology is the application of new technological advancements to products and services being used in the financial industry. It describes the new technology that seeks to improve and automate the financial delivery and use of financial services. Fintech is utilized to help companies, business owners, and consumers to manage their financial operations processes by using specialized software and algorithms.?

?Fintech includes different sectors and industries such as:

• Education
• Retail banking
• Investment management?
• Development and use of cryptocurrencies such as?bitcoin.?

So, FinTech is a technology-enabled innovation in the financial sector, ranging from financial transaction management to fraud busting.?

?Let's discuss the convergence between Artificial Intelligence and FinTech and five ways how artificial intelligence will change FinTech:

1.?????Stronger Security

In the financial technology sector, AI provides a massive boost to security. AI in cyber security can be understood by taking the example of chatbots which convert the frequently asked questions into simulated conversations.?

2.?????Enhancing human workers through automation

Financial technology can be improved significantly with the use of technologies that fall under the AI umbrella (Machine learning, Data analytics, Neural network). In fact, we can say that AI is now critical in financial services, as it is driving new efficiencies and delivering value in all areas of FinTech.

?3.?????Improved customer service

Customer service is one of the most prominent areas of FinTech, which has been improved by artificial intelligence. It uses chatbots, virtual helpers to interact with customers.?

?4.?????Client risk profiling

Finance services such as banks and insurance companies work on client profiling and are based on their risk score, which is very critical. AI technologies which include Artificial Neural Network, the classification models, can be trained with the previous data to rate the client profile from low to high.

?5.?????Algorithmic Trading

Algorithmic trading uses a pre-programmed set of instructions to analyze data to make a decision faster than humans, using AI technology machine learning.

Artificial intelligence holds great potential in the fintech industry as it improves efficiency, reduces costs, and automates processes.?

What Does Fintech Hold for the Future?

Nowadays, Businesses and banking customers are increasingly relying on technology to help them navigate their financial livelihoods.

?One can say that Fintech is officially a major player in the global economy, business landscape, and fabric of modern society at large. The field is widespread, rapidly growing, and, it appears, here to stay.

?So, we can say that Fintech can apply to any innovation in how people transact business, from the invention of digital money to double-entry bookkeeping. Due to the internet revolution and the mobile internet/smartphone revolution, financial technology has grown explosively, and fintech, referred to as computer technology applied to the back office of banks or trading firms, currently describes a wide variety of technological interventions into personal and commercial finance.

?Fintech now describes financial activities, such as:

• Money transfers
• Depositing a check with your smartphone
• Bypassing a bank branch to apply for credit
• Raising money for a business startup
• Managing your investments

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