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AI in FinTech: How Artificial Intelligence Benefits Financial Organizations

Artificial intelligence (AI) is one of the most powerful technologies that benefits many industries. When it comes to fintech, it has proven to be a highly valuable tool. AI has revolutionized the industry, enabling thousands of financial organizations and fintech companies to automate labor-intensive operations, streamline processes, and make well-informed decisions. As a company that specializes in fintech development services, AnyforSoft would like to elaborate on the role of AI in fintech. In the following paragraphs, we discuss how artificial intelligence helps companies in the fintech sector better cope with their daily routines while minimizing expenses. Who knows, maybe this article will encourage you to implement AI in your own company’s operations. AI in FinTech Industry: Market Size Before describing the use cases, let’s first learn how widespread AI technology is in the financial industry. According to Allied Market Research, the global market size of artificial intelligence in fintech was valued at $8.23 billion in 2021 and is expected to reach $61.30 billion by 2031, growing at 22.5% each year. Thus, AI-powered solutions are firmly embedded in the financial sector, and this tendency will only increase. That means if you want to compete properly, you will have to implement AI technologies at some point. While it may seem expensive, the implementation of artificial intelligence will benefit your organization in multiple ways. AI in FinTech: Top 5 Reasons to Leverage Artificial Intelligence Why embrace fintech AI? Well, there are many reasons. AI applications in fintech help companies improve while minimizing their expenses. In order not to be unfounded, let us show 5 real use cases of the technology in the fintech industry. #1 Better customer service with AI-powered chatbots The more clients you have, the harder it is to provide quality customer support and service. At some point, your team will be insufficient to resolve your clients’ issues in a timely manner. As a result, they will have to wait hours to have their questions answered. That is unacceptable for any customer-oriented company. Luckily, there is a fast way to tackle this issue—AI chatbots. An AI chatbot can communicate with thousands of users simultaneously while being available 24/7. It will help you reduce the workload of your customer service team and minimize expenses. What you could do is have a chatbot to answer simple and repetitive customer questions while your human team will be dealing with more complex inquiries. By introducing an AI-powered chatbot to your company, you can: Reduce customer service costs. Instead of hiring more employees to provide customer support via chat, it is more prudent to invest in an AI-powered system that will do the same work for free. Improve customer experience. With a chatbot, your client can get an answer to their question in less than five seconds (no customer support team replies that fast). Remove interpersonal communication barriers. Shy individuals are often afraid to bother a “real” customer support manager. With virtual assistants, the fear is completely gone. As you can see, AI in fintech is a great instrument for improving customer service. #2 Improved Fraud Detection and Prevention Another use case of AI for fintech is fraud detection and prevention. Big fintech companies process thousands of transactions every day. Obviously, analyzing each transaction for suspicious activities manually is virtually impossible. Thanks to artificial intelligence and machine learning, however, financial institutions are able to identify fraudulent activity in real time, reducing the teams’ workload and automating labor-intensive tasks. What’s more, AI algorithms are more accurate—they can analyze significant amounts of data and identify fraudulent activity patterns way better than humans. In addition to that, they can work non-stop and automatically flag suspicious financial transactions for further investigation. This allows financial institutions to respond quickly to potential fraud and take action to prevent it from occurring.