Do you want to detect threats, automate tasks, and improve customer service? Then, you need to implement artificial intelligence tools. In this article, we will talk about its applications and best practices for successful implementation.
How Fintech Companies Use AI
Artificial intelligence brings many opportunities for fintech companies. Let’s find out how to leverage them.
Digital Assistants and Chatbots
A customer support specialist can’t work 24/7, but digital assistants and chatbots can. They tirelessly help users get answers to questions, remind them about future payments, or guide financial behavior through expert advice. Thus, you free up employees for more serious requests and improve service.
Do you want to improve the financial literacy of customers? AI algorithms analyze their spending patterns, behavior, and goals to develop investment recommendations. At the same time, you promote your products and services. As a result, everyone wins.
Credit Risk Assessment
Before loan approval, assessing the client’s ability to pay is essential. AI tools allow you to quickly and accurately determine a credit rating. For this, the program analyzes total income, transaction history, marital status, credit history, etc.
Artificial intelligence is great for analyzing unstructured data. You can predict a particular customer’s propensity for a product, forecast market trends, and identify new opportunities. For example, NLP helps monitor news and social media, revealing valuable insights. Implement AI to make decisions based on accurate, real-time data.
Today, you can access advanced authentication technologies such as behavioral analysis or biometrics — fingerprints, facial recognition, or retinal scans. As a result, users do not need to remember long and complex passwords. Also, these methods are much more effective for security as such data is quite difficult to fake.
In the financial sphere, the lion’s share of efforts are directed at detecting suspicious activity. With AI, you can analyze customer behavior, track their location, or identify purchasing habits to prevent fraudulent activity. Another problem is false positives on fraud and transaction blocking. AI can decrease their number, minimizing customer dissatisfaction and financial losses.
Best Practices for Implementing AI in Fintech
To get all the benefits we have talked about above, you need to follow certain practices:
- Make sure you can comply with data protection laws and financial regulations.
- Ensure your training datasets are well-balanced and don’t make your AI system biased.
- Implement encryption, biometric authentication, and other security measures.
- Ensure an AI-powered program is understandable to both your employees and customers. Provide training and create manuals.
- Retain scalability, keeping your system pertinent as your business grows.
- Keep your data clean and relevant.
- Conduct thorough testing.
If you are looking for a reliable partner to develop an AI-powered fintech solution, get in touch with S-PRO.