Thanks to AI, the world of finance is going through a paradigm shift. With the proliferation of more digital devices, a slew of data generated products and services promise the creation of new possibilities. Today, AI is reshaping the way financial institutions generate and use data insights. This usage of intelligent algorithms to offer improved financial operations and solutions has resulted in the genesis of fintech, the portmanteau developed using the words ‘financial’ and ‘technology’.
Fintech helps firms manage their financial practices more effectively. Financial incumbents that offer services in banking, insurance, risk management, and trade are all using fintech to enhance their operations.
It must be evident by now that fintech is not powered by AI alone. Technologies like blockchain, robotic process automation, and big data analytics also contribute to the fintech movement. Crowdfunding platforms, mobile payments, cryptocurrencies, blockchain, insurance, and budgeting applications are all examples of fintech which are now in use.
The adoption of AI algorithms has moved from the periphery to the central part of fintech. With data as a core component, the disruptive nature of AI brings enormous potential gains. Fintechs are already looking into better methods to leverage data and AI in their services and products so that they can provide relevant trustworthy insights, suggestions, and controls.