It is not enough to just import technologies like AI, Block-chain or smartphones into existing financial services, says futurist and Fin-tech entrepreneur
--Brett King.
The two biggest issues facing the majority of Bank customers today are service delays and poor quality of personalization. Now that we have chat-bots that have become more and more intelligent every year with conversational interface design, personal banking is significantly improved. AI is bringing upon a digital revolution to banking. Fin-tech is an industry aiming to disrupt financial services using Artificial Intelligence. By reducing waiting time, the bank can get-rid-of long ques and help customers get personalized services quicker. AI has the potential to eliminate human error in banking procedures, allowing banks to better understand customer demands, make credit cards extinct, and influence the attraction of the unbanked to financial services.
Fintech is evolving into a fourth platform, providing subscription based 'embedded financial services'. The need to improve payment, lending and insurance combined with customers’ mercurial preferences for how they use financial services are challenges that AI and machine learning (ML) are solving today. Many recurring costs in developing, validating and deploying credit risk models can be reduced using ML. Financial institutions that have ML in production can produce the required 'model risk governance documents' in minutes. AI and ML will help providing insights into which approach is the best for a given customer.
Fintech is evolving into a fourth platform, providing subscription based 'embedded financial services'. The need to improve payment, lending and insurance combined with customers’ mercurial preferences for how they use financial services are challenges that AI and machine learning (ML) are solving today. Many recurring costs in developing, validating and deploying credit risk models can be reduced using ML. Financial institutions that have ML in production can produce the required 'model risk governance documents' in minutes. AI and ML will help providing insights into which approach is the best for a given customer.
Customers facing systems such as Chat-bots can deliver human-like advice, at a low cost. Analytic tools collect evidence and analyze data necessary for conviction. AI tools then learn and monitor user’s behavioral patterns. Claims management can be built-up using Machine Learning. With their self-learning abilities, AI systems can then adapt to new undiscovered cases and further enhance the detection algorithm with less error rate and enhanced accuracy.
The change in Business, Social and Economic behavior on the
adoption of new technology is Digitization. Digitization is aimed more towards creating new business
models, where all markets & consumers could participate. Thus, organizations focus more on capitalizing emerging
technologies that help them in positioning and transforming the teams into high
performers.
The primary aim of digital transformation in the financial
sector is to be more customer-centric. The cognitive computing also ensures the creation of
conversation interfaces for placing customer queries and responding to them.
Chat-bots are the best example of AI-powered digital assistants, developed to
respond to customer queries thereby improving consumer services and CRM.
Automated financial assistants are making financial decisions. These include monitoring events, stock and bond price-trends according to financial goals and personal portfolio, which can help in making recommendations to buy or sell. These systems often called “Robo-Advisors” and are increasingly being used by Financial institutions.
Neobanks (Chime, Simple and Varo) are essentially banks without any physical branch locations, serving customers with checking, savings, payment services and loans on completely mobile and digital infrastructure.
Fintech is creating Natural language (NLP) based Chatbots and innovating Conversational AI to reform the financial industry. These Chat-bots are responding to customer queries and providing answers, thereby elevating customer ecstasy. The rise of Robo-advisors in stock trading, Block-chain in anti-money laundering, the implementation of alternative credit reporting and the decentralization of global payments are few of the Fin-tech trends.
As per recently published ESG
Research report 82% of firms agree that
if they do not add voice interaction capabilities to their software products,
they will lose market share to competitors that do. And 87% of firms using voice assistant and
Chat-bot technology will realize significant business value within 1 year of
deployment. TechCrunch also reports
that Voice assistants in use, to triple to 8 billion by 2023.
The whole reason money has worked is that there is trust, but the concept of money is changing.
- Carlos Menendez, President of Enterprise Relationships,MasterCard
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