The mix of technology and financial inclusion gave FinTech its most important boost. Now, the growing industry is thinking of reinventing itself by adding artificial intelligence (AI) to improve its processes and be even more inclusive by adding new technologies. Jason Simon, an expert in FinTech and consumer activity, explains these latest additions.
One of the elements driven through AI are chatbots. These virtual assistants programmed to answer frequently asked questions are one of the elements of which FinTechs are more sustained to start the process of approaching the user, surely more than once you have interacted with them. Also, there are other technologies that, over the years and the advancement of technologies, will be applied to FinTechs. They are stronger, with the purpose of providing quality service even though it is automated, which in turn translates into lower costs and better returns for startups.
Voice biometrics is an AI-based tool that is responsible for identifying and analyzing the voice of a person to validate their identity at the time of making a transaction remotely. This offers a greater amount of platform security and protection for both the FinTech and the consumer.
Voicebots are virtual voice assistants with the ability to manage conversations in real-time, with their help, the FinTech user will be able to solve doubts without the help of a human and will even be able to receive financial suggestions backed by data and machine learning.
Credit Scoring technology is key to the placement of loans in the financial system, so technology is necessary as an auxiliary when generating predictive models that evaluate the probability that a client has to pay their credit and other related tasks. AI is enhancing the interpretation of credit scoring to ensure better results and better lending opportunities.
Anti-fraud algorithms are among the most popular technologies and promise to transform services. With them, it is possible to identify suspicious practices and unusual activities.
Other algorithms used in the FinTech industry are risk management algorithms, which are used to analyze the financial situation of credit applicants (in the case of FinTechs specialized in loans). With them, it is possible to easily detect anomalies and news of the user’s history.
“Without technology involved, FinTechs simply could not operate,” explains Simon, “so the constant advance of AI is fundamental for the development of the emerging financial services sector, the automation that accompanies it promises to democratize financial services by making them available to anyone, this evolution also contributes to the increase in the banking of people.”
Practically since the origins of Computer Science, it has been claimed that computing is capable of solving tasks following the intelligence of a human. Those theoretical and application models in very specific fields have evolved, placing AI very close to most of the population. Today, we are all closely linked to technology, at home, at work and at any time with our smartphones. In this technological environment we live in, the interaction with artificial intelligence algorithms is continuous. Behind any device connected to the Internet are software and cloud computing that use AI techniques to make our lives easier. And, as should be expected, FinTech also needs artificial intelligence for many of its applications.