Business is constantly shifting and adapting to the needs of human society. Even in times of global pandemic, the business world has marched on, quickly pivoting to serve customers in contact-free ways. Much of the adjustments come from implementing new technologies. Artificial intelligence (machines that can learn) is shaping services across global industries. Nowhere is this more obvious than in the banking sector, which has had to make large adjustments due to COVID-19. The banking industry is experiencing a growth of new services using technology to expedite these services in a contact-free manner that also empowers consumers and reduces operating expenses. This combination of banking and technology is often referred to as Fintech.
It is a time of change for financial establishments as consumers, entrepreneurs, and institutions alike are empowered with more personal access and control over their finances through technology.
Fintech for All
Fintech is disrupting traditional financial services structures. It refers to a wide variety of technologies within financial services such as mobile banking, mobile wallets, blockchain, cryptocurrencies, and more. What these various services share is that they’re all financial services provided using software and new technologies instead of traditional banking services and methods.
Artificial intelligence is an ideal partner to make the technology and the software that motors fintech possible. With AI, human error is no longer an issue, financial institutions will have a better understanding of what their customers want and how they want to do their banking. Additionally, entrepreneurs will have opportunities to serve customers and access to the technology to create new ways to interface with financial information. AI Technology will continue to both shape and respond to the needs of the Fintech industry into the future.
Increasing Customer Service
One way the Fintech industry is offering better efficiency to its customers is through services such as chatbots or virtual assistants. These assistants are programmed using Natural Language Processing (NLP) to understand human language and meaning. They’re able to respond intelligently and complete tasks that a user requests. With a programmed virtual assistant, clients can stay in better touch with their finances and access information about their accounts and the markets more quickly. These assistants are not limited to simply checking one’s balance, they can also give reminders, updates, and alerts when things change or come to maturation. Imagine a personalized service that could remind a user when his/her CD (Certificate of Deposit) was about to mature or if the user was approaching his/her credit card limit. Such services come in handy whether managing a larger financial portfolio, or a personal bank account.
With the arrival of COVID-19, mobile wallets are an increasingly popular and efficient way to manage credit cards and make payments. The touch-free options of stored credit and gift cards allow users to quickly touch their phone to a scanner to transmit credit card information. Transferring money between accounts is also made easy with mobile wallets and online banking applications.
Underwriting for bank and automobile loans is generally a slow process, but with AI, immediate assistance is possible to assess credit risk. AI can rapidly cross-check thousands of data sets to help lenders assess risk when providing loans. The short turnaround time helps not only lenders but also borrowers to be able to make decisions quickly and with confidence. Furthermore, tech-savvy financial institutions may link financial products (credit cards, loans, etc.) to segmented risk profiles. These products can be recommended to clients based on their data matching appropriate products to each risk level.
Financial services that use Fintech can be offered at a reduced cost. According to Autonomous Research, AI technologies will allow financial institutions to reduce their operational costs by 22%, by 2030.
What would have taken far more time for a human to complete can now be done quickly with assistants created using artificial intelligence. More customers are served at a quicker rate, benefitting the Fintech industry and its clients. Transaction fees are generally lower with Fintech tools and cryptocurrencies, saving users money. Humans and machines work together to offer solutions to clients but with a drastically reduced workforce by comparison to traditional financial institutions.
Fintech opens up banking and financial business to entrepreneurs and redistributes the monopoly that banks have long held. Fintech connects financial business and consumers with more personalized services, giving users more tools to manage their financial independence at a lower overhead cost to the business.
Considering getting involved in Fintech? The technology to do so is accessible! At Avantica, our nearshore teams can develop software using AI to build Fintech applications and systems, helping entrepreneurs or existing financial institutions to stay ahead of the curve. Avantica’s engineers and teams have the knowledge and experience to design and perfect Fintech products to help change the way banking and business are conducted. If you’re interested in taking advantage of these technologies and exploring what artificial intelligence technologies can do for your business, ask for a consultation. Avantica’s consultants can help you create your Fintech app or business. We have over 25 years of experience in creating banking products and financial experiences across the US and Latin America.