Time, finance, and intelligence – all the reasons why AI and accessible data are the future of the FinTech industry. According to the International Data Corporation (IDC), research claims that the world will create approximately 163 zettabytes of data by 2025.
To better understand the future of FinTech, you will have to look at the beginning of where it all began: Artificial Intelligence (AI). Today, AI is used on multiple platforms, such as Virtual mobile assistance, chatbots, accessible data, and more.
These technologies are already integrated into smartphone mobile devices that can fulfill common tasks as well as solve financial issues. So, can AI be applied to the future of FinTech?
Advanced Customer Service
The communication process between financial service employees and customers can be easy with the help of online chat and phone. According to a study conducted by Zendeck, 42% of B2C customers showed more interest in making a purchase after receiving good customer service. However, the same study also revealed that 52% of them stopped purchasing from the company due to a single disappointed experience in customer service. While we cannot exclude the chances of human error, specialists can help customers solve main issues of the products or services while AI provides the technological solution to customer-support interaction.
In the future, AI will be used as a tool to work with stock exchange and automate the entire process. This way, AI can make accurate predictions for tomorrow’s prices and perform a thorough analysis of the financial market. As a result, investors will find more opportunities to invest in financial products that work with AI – and ultimately bring in more profit.
Early Fraud Detection
As the FinTech industry continues to embrace big data, there are two main drivers behind this: accessible data and increased computational power.
Reports from the IDC FutureScape suggest, “Cognitive computing, machine learning, and artificial intelligence will become the fastest growing segments in new enterprise apps.” As for organizations faced with the rise in product liability and fraud losses, AI is progressively positioned as a key tech to help robotize instant fraud detection and maximize performance in the near future.
In addition, overlooked factors that influence the effectiveness of access data will include:
- Geographical variances in data
- Varied risk across products, apps, and channels
- Accuracy of fraud classification
- Relatively occurrence of fraud compared to transactions
This will ensure that data meets the minimum benchmarks, especially with continuous digitalization, which will subject banks to new data assets. In return, these factors can help enhance fraud detection capabilities with increased data protection and privacy regulations.
With the advancements of AI and Accessible Data, we can add in precious metals, international currencies, peer-to-peer lending, identity protection, e-Wallet security, cloud computing access and more into the global payment experience. By expanding more products and services to the market, companies can move towards their goal of an interface that allows every customer to tailor their banking needs and experience while expecting only positive results. In the end, customers will benefit from multi-account APIs and ultimately lead to a “trusted partner” in FinTech.