Fintech Industry Employs Extensive AI Implementation
With the rigid measures in security and compliance, the financial industry tends to be quite cynical in accepting newer technologies compared to other, less regulated industries verticals. However, Artificial Intelligence (AI) is starting to change this landscape into a whole new frontier, and Fintechs are leaving no stone unturned trying to utilize the same. According to industry insiders, more than 36 percent of the financial institutions worldwide have leveraged AI-focused technologies, and around 70 percent plan to implement it in the near future. Moreover, Deloitte’s white paper titled ‘AI and You—Perceptions of Artificial Intelligence from the EMEA Financial Services Industry,’ states how AI can be leverage against three application domains for the Fintech industry—cognitive automation, cognitive engagement, and cognitive insight.
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While AI has been around for quite some time now, it is gradually making its way into the everyday aspect of how consumers do banking, investments, or any other financial services. Forbes reported that in the last two years, more than $4 billion had been invested in newly funded ventures, primarily on the financial services AI applications offered by newly emerging Fintechs. This AI adoption is said to increase as more clean technologies arrive on the market with over 30 percent of financial services companies already leveraging AI to quite some extent. In March, Accenture released a report that stated that 76 percent of banking and financial services executives propose to install, integrate, and deploy AI within the next three years.
Financial institutions and Fintechs have started mitigating risks by implementing AI, by exploring various areas of their business where such a technology can be applied—reducing costs, increasing revenue, eliminating fraud, and providing value for customer experience.