How is AI changing the financial services industry?
What is FinTech?
Financial technology ("FinTech") generally refers to digital innovation in the financial sector. At its inception, the understanding of FinTech was limited to innovative ways of facilitating payments and transactions. Underpinned by revolutionary shifts in Internet and mobile technology in recent years, the realm of FinTech has witnessed explosive growth. Nowadays, it refers to a wide variety of technological interventions within the financial services arena, such as crowdfunding, online customer acquisition, mobile wallets, P2P lending, MPOS, MSME services, personal financial management, private financial planning, Blockchain and crypto currencies.
Given the opportunities that FinTech affords, many technology companies have been actively trying to tap into the financial market. As such, FinTech is also used to describe businesses that aim at providing financial services by making use of software and modern technology.
The word FinTech is synonymous with comfort, innovation, and high access to the financial world. The Artificial Intelligence majority of FinTechs aims at financial inclusion which allows the audience to benefit from the overall financial system.
According to the latest study, AI in fintech market is expected to reach USD 9125.4 million by 2027 witnessing market growth at a rate of 65.7 % in the forecast period of 2020 to 2027. The market has witness significant growth in the years to come due to change in the technology which is developing of the business processes of financial service providers.
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North America is dominating the AI in fintech market is one of the largest and most advanced markets for AI in the world. The region has also registered the maximum adoption of AI in fintech solutions due to factors such as the strong economy, robust presence of prominent AI software and system suppliers, combined investment by government and private organizations for the development and growth of research & development activities.
Fintech is one of the fastest growing industries within the globe owing with the penetration of the internet users. Users are briskly moving to mobile devices to perform related actions and transaction, growing internet user base. As this will rise bar for cyber-attacks from fraud owing to which the incorporation of artificial intelligence will gain growth over the forecast period. Increase use of AI-enabled technologies solutions in the capital market is an opportunity for the AI in fintech market.
FinTech and Artificial intelligence
The benefits of using artificial intelligence in financial services and FinTech corporate operations are frequent and extensive. In addition to this, from marketing your products and services to customer research, Artificial Intelligence, combined with big data and predictive analytics, is very effective in increasing the reach and scope of financial institutions worldwide.
Now, the entire loan process takes only a few hours, and if one applies for a loan in the morning, the loan funds are paid off on the same date. In addition to this, with the entry of Amnesty International in the multifaceted financial sector, both accuracy and speed increased.
Adaptation to the latest technology is a daily necessity, but the key to a successful business is to deliver services or products as per the market needs. As a result, FinTech firms are tailoring themselves to the needs of evolving markets. In addition to this, they work hard to create a more customer-friendly financial environment by eliminating any complexity in the documentation and delivering products.
Major Competitors operating in the AI In Fintech are
IBM,
Intel Corporation,
IPsoft Inc,
Comply Advantage,
Samsung,
Narrative Science,
Microsoft,
Amazon Web Services,
Nuance Communications,
Google,
Inbenta Technologies