Financial institutions are under immense pressure to transform their traditional business models and make them nimble, efficient, and seamless for their customers. Right from moving away from traditional enterprise systems to adopting modern custom-designed solutions - enhancing efficiency and productivity of employees while increasing customer satisfaction has become a top priority. And one of the best ways for them to achieve these goals is by adopting AI.
According to reports, AI in Fintech is expected to reach $22.6 billion by 2025, growing at a CAGR of 23.37% between 2020 and 2025.
In fact, the future of Fintech is AI; here’s why!
With data as the new fuel, AI allows financial organizations to improve business decision-making by crunching huge, varied, and complex data sets. What humans needed weeks or even months to achieve, AI allows for results to be delivered in a matter of a few minutes or even seconds. Using evolutionary machine learning algorithms, neural networks, and deep learning techniques, AI helps in analyzing the growing volumes of customer, market, and regulatory data quickly and efficiently – allowing companies to make accurate, evidence-based, data-driven decisions.
As modern customers (and hackers) become increasingly sophisticated in how they commit fraud – especially with financial institutions – AI tools can help prevent duplicate & suspect transactions, loan application fraud, money laundering attempts, account thefts, and more. By constantly monitoring user behavior, they can identify anomalies and deliver warning signs of fraud attempts and incidences – no matter how subtle they are. They can help process large datasets with many variables and find hidden correlations between user behavior and fraudulent actions – while improving risk analysis, claims management, and creditability assessments.
In contrast to the early days of banking, where every customer was serviced in the same way, modern customers expect personalized banking experiences that are tailored to their unique demographics, geography, needs, and wants. AI allows financial organizations to have personal connections with customers and customize the experiences that best fit their needs. By constantly monitoring the interactions customers have, AI helps in gauging what customers need – even before they realize themselves – and proactively delivering products and services.
Another critical avenue where AI delivers unmatched value is daily operations. Through automation of the underwriting process, AI models can utilize information and relevant parameters to make better decisions. AI can help control risks and improve human decision-making in day-to-day tasks such as customer onboarding, data entry, claims management, credibility assessment, and more, – both in terms of speed and accuracy. Such automation can lower costs and enhance efficiency by reducing error rates, improving resource utilization and boosting revenues by uncovering previously unrealized opportunities.
AI can also allow banks and other financial institutions to use models to predict future events. Sophisticated programs that rely on data mining and machine learning can analyze enormous amounts of information to determine what is likely to happen next - based on current conditions – helping improve customer experience in several novel ways. Right from predicting creditworthiness to improving budgeting efficiency, detecting identity theft to identifying incongruities in loan applications, predicting churn to building valuation models, and more. Such analyses can help enhance business operations as well as improve internal processes for better results.
Banking customers often require timely and top-notch service, which AI makes possible. Trained AI chatbots can interact in real-time with customers, gather all information about queries and concerns via text chats or voice systems, and deliver human-like advice quickly and cost-effectively – without requiring the support or assistance of expert customer service executives. These executives, can then, focus on aspects of the businesses that are more critical while delivering the highest level of customer satisfaction.
For financial companies, use of AI can help in identifying and implementing new and interesting ways to boost customer satisfaction and thereby enhance their business. By processing large sets of information about customers, markets, compliance, and competition, AI paves the way for better automation, enhanced predictive analysis, accurate fraud detection, and improved customer service. Thanks to the power of AI tools, organizations can unearth insight from complex information and improve financial decision-making.
If you are looking to leverage the power of AI in real-world scenarios, catalyzing enterprise productivity and customer engagement, we can help! Contact us today and allow us to transform the way your business operates, expedite your processes, enhance employee productivity, and improve customer engagement through tailor-made AI solutions and implementations.