There are a number of disruptions to be caused in several traditional areas of Fintech, as a result of advances in Artificial Intelligence. The collaboration of financial services and major technology companies is already quite important.
The interaction capabilities of robots and the cognition continues to improve at a rapid rate, which opens up doors to a number of complex tasks that can now be performed without the need of a human. While ATMs may also be considered as simple robots, experts predict that it won’t take long for Robotic Process Automation(RPA) to create a number of inroads in the Fintech digital operations.
It is also predicted that due to the rapid advances, the Artificial Intelligence capabilities and robots may substitute a number of roles that humans play in the Fintech industry. This may spur re-shoring as an increasing number of tasks could be performed at a competitive cost. Functions such as fraud prevention, underwriting, and product design may also see a significant level of Artificial Intelligence interference.
It is true that AI technology is already used in a number of ways to provide Fintech solutions. However, very soon, we can expect it to become a core component of the entire process of fund designing.
Similarly, it can be predicted that by the end of the year 2020, Artificial Intelligence may cause automation in a wide number of underwriting functionalities especially in markets where the data can easily be obtained. This applies very well to the emerging markets.
Banking is the one sector in the financial world that is expected to receive the greatest amount of benefit by making use of Artificial Intelligence systems, over the next few years. This may save the banking industry about $1 trillion plus by the end of 2030.
Chatbots And Personalized Customer Service
Since there is an increase in the automation, many people fear loyalty will be reduced because there would be no personal contact between customers and the company’s representatives. Nevertheless, the use of Artificial Intelligence does not suggest that personal contact will necessarily be reduced. Rather, Artificial Intelligence will be used by banks in order to improve efficiency, client satisfaction, and customer loyalty.
For instance, the chatbot named Erica, developed by the Bank of America is a tool that makes use of Artificial Intelligence and guides by answering financial queries via text messages and voice.
Compliance, Fraud Detection, And Anti-Money-Laundering
There are a number of fully developed Artificial Intelligence tools that are capable of conducting and compressing a huge amount of data within a few minutes. This can help in solving many cases of anti-money-laundering and can easily detect frauds. This task would otherwise require a huge amount of labor and would be rather complex.
Automation in the financial institutions is primarily driven by RPA. Atop that, the cognitive capabilities of Artificial Intelligence systems are also increasing, allowing them to perform complex automation tasks. Consider COiN, for instance. It is a technology that extracts and reviews documents at a blazing fast speed. Within seconds, it could review around 12000 documents, which would take humans around 360000. Indeed, the implications of AI as a Fintech solution are huge.