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Artificial Intelligence has been a key component in the Fintech revolution. With companies continuously seeking solutions to improve customer service or simply making the work easier, the banking industry now needs artificial intelligence more than ever. Artificial Intelligence is enabling financial institutions to grow rapidly as well as boosting performance and efficiency. AI has opened opportunities and allowed advancements that were only a dream a few years ago.
Lowering Heightened Barriers
One major breakthrough of AI is its ability to break down barriers to entry. The technology is also enabling high levels of growth for many start-ups that would have be unable to compete with large traditional banks before the introduction of AI.
Traditionally, banks accumulated customers over a long period of time, which allowed them to face little to no competition from new entrants, while new entrants were unable to gain the customers needed to compete and therefore did not succeed.
However, the landscape has undergone a complete revolution thanks to technological advancements. Digital banks now leverage digital onboarding, enabling rapid customer acquisition within short timeframes.
Jumio, a fintech start-up, has effectively utilized digital onboarding, resulting in a staggering 400% increase in sales. Moreover, they have successfully completed 50 million global identity verification transactions, showcasing the immense potential of this technology.
Although artificial intelligence is currently focused on various functions such as customer profiling, streamlining services and Chatbots, there is still much more potential for this technology that will be the focus of development in the near future.
AI and Safe Banking
Security is a major area that will be greatly imroved by AI developments. It has already been proven that AI is able to combat security issues as well as monitoring operations of Fintech solutions. It is able to provide the in-depth analysis that humans cannot achieve.
An example of this is the use of AI to detect the Bitcoin manipulation on the 27th of July 2018. The AI solution, RoninAI, was able to analyze social sentiment data and pinpoint the cause of the 5% price drop. Morgan Stanley already uses AI within their fraud detection team, and HSBC has recently announced that they will begin to use AI to detect money laundering, fraud and terrorist funding. These current uses demonstrate just a fragment of what AI can achieve in enhancing security functions.
Unlimited Possibilities
It is expected that many technology experts will work in the future to further innovate banking as AI becomes increasingly popular. Some examples of current innovations include the robots used to execute trades for JP Morgan and Amazon’s digital assistant Alexa which is used for customer duty. It is estimated that 47.8% of bankers have a digital strategy that has been properly invested in and implemented, however, 90% of banking executives agree that organizations need to innovate further in order to remain competitive.
These statistics demonstrate the need for further development in AI, unlocking opportunities for technology companies to create new AI solutions that will solve banking problems and further innovate and develop the industry.
It is estimated that 47.8% of bankers have a digital strategy that has been properly invested and implemented
Tagged:
- AI, digital finance, global
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Omar Mansur
Tech enthusiast and disruptive strategy expert with a strong passion for exploring innovation and making a difference.
