Artificial intelligence is no more a new word to any folk; neither any sector is untouched from this technology. In present time most of the companies are taking benefit of such technologies then how banking and finance sectors would be left behind. In this era everything is really fast paced and satisfying consumer’s requirement is crucial aspect to attain success. Artificial intelligence has boosted finance technology and has brought precision to the highest level along with a fast speed. Another important phase of fintech sector which is revolutionized with the help of artificial intelligence is enhanced customer experience and engagement level.
A number of changes brought by the artificial intelligence to the world of Finance industry are listed below:
- Customer centric approach
- Cost optimization
- Enhanced security
- Real-time data integration
- Easy to use
- Targeted audience approach
Benefits of artificial intelligence in banking sector:
If compared to olden days, present era is much more technical and it has powered with various types of products. It has assisted banking sectors to serve their customers at lower prices. Artificial intelligences had over powered the strict policies of banking sector which was dissatisfying the customers and now has given a customer friendly platform.
Benefits of incorporating artificial intelligence with finance sector are unlimited. It has made marketing and customer reach easier and swift. AI combines with big data and allows the technology to conduct predictive analysis for the better results. With the help of this technology, reach and scope of finance sector has been increased exponentially worldwide.
Thinking about a finance related task, most of the folks step back due to the long paper work procedures. Emergence of latest finance technology has briefed paper work to a great extent and has made finance work easier and swift for the customers.
Other benefits of artificial intelligence in finance sector are credit risk evaluation, profile of customers, digital financial advisor, and many more.
Who all can be leveraged by fintech industry?
Finance is one of the major sections of each and every sector regardless of their business domains. It’s been a part of each business since traditional age when accounts were only done on the papers, but now the time has grown to a technological level where everything is automated then why not finance sector. With the flying time and growing using of technology, finance sector has undergone great changes and now it is used to automate a number of financial activities and make it easier for business and common folks too. Finance technology, more commonly known as fintech is a very commonly known name but hardly few are well aware of each and every benefit it offers. Fintech is a vast sector with a number of operations sorting capital management in various ways.
There are a number of fintech users but they are totally different from one another in terms of objective, type of use and many more. This states that fintech industry is serving a number of distinct requirements with appropriate solutions.
Types of fintech users:
Business to business (B2B):
Finance management is very crucial aspect for a business to operate smoothly and generate revenue. In case of huge firms with a huge capital investment and management, manual works get tedious and also has an increased probability of errors. As a solution, fintech sector serve with an automated solution with which a number of financial tasks can be automated and get done precisely.
Business to consumer (B2C):
Carrying cash for each transaction is tough and if you have to transact money at a distance then standing in bank queues is time consuming too. For this fast paced world a fast paced technology is required that allow them to transfer money within no time. Fintech industry has given a number of apps to the foolks with which they can immediately send or receive money directly from their bank using their smartphones.
Robo-Advisor and its key benefits in Fintech
Financial planning is the backbone for every type of business to operate efficiently with achieve targeted objective. A single mistake in the financial records or planning can drag the growth of an organization to zero. As a solution, Robo-Advisors serve a digital platform with automated functions backed up with algorithm-driven financial planning services. This digital platform allow to automate the procedure with least or can be said no human supervision. A question might be nudging your mind, “How a digital platform can be able to plan financial operations?” It is a worth question that must be answered before using such a high tech platform.
The mechanism of Robo-Advisor is very simple which involves information gathering from client about their financial state and then conducting a thorough study over the market based on the future objective of the client. Output of all such study and surveys are used as input by this platform to take financial decisions and investing client’s assets automatically.
Benefits of Robo-Advisors in fintech:
Investing is a boon for an organization or an individual, but hardly people have any idea about investment. So, when they plan to invest their money for a better ROI, the very first solution hit their mind is wealth advisory team. But it makes their work more tedious by adding an interaction with a team and spending team for it.
Robo-Advisor has brought a revolution in the finance sector with a new approach of automation. It is a digital assistant that work on various algorithms to manage financial portfolio of clients. It gives an enhanced and secure experience. This is possible with the help of machine learning and artificial intelligence. These tools are no longer confined till chat-bots; rather it has grown in the field of fintech too with a number of finance management aspects, such as automating loan process, data management, wealth management, voice assistance, customized finance advisory, and many more.
Technologies that contributes in fintech sector
Finance sector has grown to a large extent and the word fintech itself states a great combination of finance and technology. Business operations need to be speed paced to match the current requirements and fintech allows the business operations to enhance the operations and financial services. Fintech has improved the way finance was dealing with the common life, now it has supported professional and personal lives with easy mobile payments, cryptocurrency, automated investment apps, crowd funding platforms and many more. There are multiple technologies which are responsible for the boosting of fintech sector. To know more about the technologies involved in embracing this sector, continue reading.
Technologies contributing in Fintech development are listed below:
- Artificial intelligence and machine learning:
Artificial intelligence and machine learning are most important technologies which play a major role in finance industry to make it potent enough to serve in much better manner. Fintech applications that include artificial intelligence are fraud detection, credit scoring, wealth management, regulatory compliance, and many more.
- Robotic Process Automation
Most of the financial operation includes repetitive tasks. Robotic process automation assists to enhance the procedure and make it swift by automating such procedures. Most used applications of RPA in fintech sector are listed below:
- Communication and marketing through e-mails and chatbots
- Regulatory compliance management
- Statistics and data collection
- Transaction management
- Big Data and Data Analytics
To enhance the business level in finance sector, predictive analysis is very crucial. Consumers are the backbone for any business and big data analysis allows you to understand your consumers well by studying the consumer preferences, their investment behaviors, spending habits and many more. Predictive analysis allows studying the consumer’s behavior using their history of financial activities. This also assists businesses to formulate their marketing strategies and generate fraud detection strategies too.