Three Ways AI Will Change Fintech in 2020

The tech world is moving fast. That pot of gold at the end of the rainbow is now more likely to be Bitcoin. 71% of the Irish population have already adopted Fintech, it was only a matter of time before the leprechauns followed suit.

New fintech companies are disrupting the financial services industry, and AI is right alongside them, helping them lead the charge.

We’ve already seen companies like Cerebreon using AI change the way we operate. Cerebreon, and companies like it, are incorporating AI to handle tedious processes. AI is already making data collection and analysis a breeze. It’s also useful to prevent human transcription errors.

All of that, though, is old hat. What we’re more interested in for now is the direction in which the fintech industry is headed. We’re excited to see how AI is going to change things up in the future.

That’s why, in this post, we’re looking at how AI will revolutionize the fintech industry.

How AI Will Revolutionize the Fintech Industry

Buckle up, 2020, is going to see some interesting developments in this area.

The Lending Industry

AI could help lenders tap into previously untapped markets and find new borrowing tools. In the past, it’s been something of a risk to lend to consumers with no credit history. Younger borrowers who’ve just left school, for example, battle to access credit. There’s simply no information on how they’d handle debt.

AI could change that by analysing a wide range of data sources. It’s capable of assessing more than just a few basic lending criteria. This will allow lenders to build up a more complete profile of their clients. As a result, the lending risk is more accurately assessed, leading to an improvement in approval rates and a more personalized interest rate.

More Personalized Service for Consumers

Many people have raised concerns about the impact of AI on job markets and the personalization of services.

In 2020, we’ll see AI changing the way we work. Finance companies will free up resources by using AI to handle tedious tasks.

Employees will have more time to focus on providing personalized services. We’ll see this manifested in better query resolution and better customization of products. Instead of every client falling into one specific category or another, we’ll be better able to customize products to the needs of the customer.

Better Fraud Protection

AI can make for a safer transacting environment. AI is able to assess patterns in transactional data. This makes it highly effective at fraud detection. Going forward, we’ll see more fintech related to fraud identification.

While this doesn’t prevent fraud from occurring, it does allow it to be detected earlier on. This, in turn, limits the amount of damage done. It could also assist in the recovery of stolen funds because of the faster detection of the fraud.

Wrapping Things Up

Overall, AI and fintech make a powerful team that’s difficult to beat. What’s most exciting, though, is that we’ve barely scratched the surface of this collaboration. It’ll be extremely interesting to see what the results will be as the two industries mature.

By Mila Bera, who is a Blogger and Contributor at Dataprot.net. Toronto born, puppy-lover and passionate blogger. Traveling the world and proving people wrong is my specialty and hobby. Love reading up on the newest trends and have a passion for anything creative and trending.

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