How Can Artificial Intelligence Help Fintech Companies?
Financial technology or fintech companies are on the cutting edge of developments in the financial industry. This technology encompasses a wide range of artificial intelligence. AI is helping push the envelope even further by offering to open even more doors than previously expected.
With AI, companies around the world are starting to do incredible things. Leaps in medicine, security and even advertising or customer service are thanks to the AI we have working for us. Machine learning algorithms and other AI techniques are becoming prominent in every industry, and they can help push forward our finances, too.
Client Risk Assessments
A significant factor for banks and companies is making sure the client is good for their money. In modern society, a credit check is one common way to do this, but many corporations generally avoid a credit check either to pull in more customers or appease their current clients. Thankfully, there is more than one way to see if your clients have a risk attached to them.
AI can build a database that categorizes clients based on potential risks. Classification models like XGBoost or Artificial Neural Network are great for labeling data as soon as new information comes in. Having a risk profile about current and new clients can help the business make informed, wise decisions. These decisions can lead to a cascading effect throughout the company to help in the future, even if the different paths seemed small at the start.
Part of why AI can build categories of risk profiles is because of pattern seeking. AI is much better at finding odd patterns or correlations than a human brain can process. That explains how AI can judge risky clients, but also how machine learning can catch mistakes or even find fraud. All sorts of industries are using this technology to be more efficient than their competitors, and the results thus far speak for themselves.
The fintech industry, if for no other reason, can benefit from AI’s pattern-seeking software alone. Human error happens often enough, but there are some small or even extremely rare oversights humans may be completely unable to catch. In fintech, small changes can mean massive problems down the road, and AI can get on top of the situation fast.
Risk assessments aren’t the only thing AI can hoist flags for. AI categorizes and tags for everything, so information people wouldn’t have thought to make categories for are now being neatly put away somewhere. Thanks to this method, generating reports or bringing up product information is easy with hardly any effort to put it together from the human angle.
This organizational concept is the foundation of software like Yseop Compose. The backbone of these programs is natural language generation, or NLG. NLG can generate text from data that flows as if it were natural spoken language, and can present it in a machine-readable form that allows constant communication and swift organization on all levels.
Pushing Industry Higher
Fintech gets its name for being ahead in the financial industry with cutting-edge technology and only the newest practices. AI incorporation is just the next step forward. However, AI is not unique to this industry. Fintech companies around the world are already seeing the benefits AI can offer them, saving time and making profits without anyone else having to watch over the results.
There’s not even the matter of cutting out human error, but doing the same work with more efficiency in mind. That is why businesses worldwide are adopting AI, and why fintech companies should consider jumping on the bandwagon.