The use of artificial intelligence in fintech is qualitatively changing the industry. AI-based technologies allow financial market participants to make real technological breakthroughs in terms of security, personalization of services, business modeling, and many other areas of activity.
IDC Worldwide Artificial Intelligence Spending Guide estimates that spending on artificial intelligence solutions will continue to show an average annual growth rate of 18.5% through 2024. The AI market is expected to cross the $500 million mark in 2023 to reach $555.1 million by 2024.
Trends and Solutions
If we roughly divide banking processes into three blocks, then the first block will include the following management processes: strategic management, management of banking products and marketing, public relations, branch network development, troubled assets, risk, finance, quality and personnel.
AI has been used quite extensively in such systems and services as customer scoring, business forecasting, customer segmentation, automatic robo-calls, ATM cash forecasts and encashment planning, and analysis of the location of offline outlets.
The second block is basic banking processes. It includes retail and corporate customer service, work with financial institutions, as well as activities in the stock, financial and derivatives markets. The list of basic AI solutions for these processes includes chat-bots, voice assistants, as well as personalized electronic services and personal financial assistants.
The third block of banking brings together supporting processes. These are administration and maintenance, legal and IT support, document management and accounting, security and internal control, anti-money laundering and counter-terrorist financing measures.
In this block, artificial intelligence is actively used in biometric identification technologies, document recognition, fraud-monitoring and detection of atypical financial activity.
The use of AI in fintech
To understand why the use of AI is becoming a reliable global trend in the digitalization of the financial industry, just look at a few typical examples of the use of AI in fintech.
AI-enabled customer scoring can reduce application approval time from days to minutes. The cost of scoring goes down and the quality of scoring goes up, thereby affecting the amount of delinquency.
AI in voice assistants is, first, intelligent call routing within the call center. And second, it’s communicating with the customer through the voice assistant within the apps. Today, it independently takes up to 80% of calls in intelligent mode, and 10% are automatically handled without reference to a person. Service time per customer has been reduced by an average of 40 seconds. If the voice assistant is implemented correctly, the person waits much less in the voice queue, and if they do, they are routed to the right employee with the right point request.
Another example is smart chat bots. These are omnichannel communication tools that mimic the activity of a real person. Today 60% of customer requests are fully or partially closed by bots in automatic mode. The average time to solve problems with customer requests has decreased by four.
Biometrics and antifraud are also among the brightest examples demonstrating the benefits of using AI in fintech. The former makes it possible to open bank accounts and conduct financial transactions remotely, reducing the time required to manage them, while the accuracy of customer identification increases many times over. And, the use of AI to detect atypical activities allows to stop about 7 billion fraud attempts every year, thereby saving money for both banks and customers.
AI Measures Customer Satisfaction
The quality of customer service is one of the sensitive components of financial organizations’ business. Not surprisingly, this area was one of the first to try to automate both customer communications and customer satisfaction assessments. If you would like to know more, you could read up on this AI blog and get to understand the impetus artificial intelligence has had in the last few years and continues to grow in leaps and bounds with time!
According to Bain and Co, a 5% increase in the number of customers yields more than a 25% increase in profits. In its studies, Microsoft shows that 61% of customers change brands because of poor customer service, and this trend is still going on.
When fully integrated, AI can greatly enhance customer engagement by helping customers with their financial transactions in a variety of online and offline contexts with intelligent, highly personalized solutions delivered through an intuitive, simple and fast interface.
“Customer satisfaction is a measurement that shows how well a company’s product or service meets customer expectations. This is important because satisfied and loyal customers are the main growth lever for the company.” – Jeannie Walters Walters, a customer experience expert.
The integration of AI into the financial sector is fully justified as a robust solution and dictated by the competitive environment. The price of the technology implementation may be quite acceptable, actually we suggest you ask for a free quote from a financial software developer like Elinext. What’s important for a fintech player is the continuous improvement of business processes by updating technology to further improve their operations.
