Artificial intelligence (AI) gifted the Fintech sector of India with real-time data processing. This helps these institutions to provide efficient customer-oriented services. And simultaneously, it takes away all the efforts and time used to get engaged in manual effort to retrieve required data. Lender companies and common people can now quickly check their CIBIL score or personal loan status online.
We bring to you the 7 ways in which AI is revolutionizing the fintech industry:-
1. Multiple Sources for Credit Score
With the help of AI, you can take out the history of an applicant from multiple sources. For example, it can help you assess the data from the web browser history, geo locations, and even social media. So now, you don’t need to depend on the CIBIL score entirely to determine the creditworthiness of the person.
The banks can compare the credit score of a person with its overall history. You can take out your target group’s behavioral patterns in general also through artificial intelligence.
2. Quick Loan Approvals
The process of getting a loan approved used to belong and tiring. It is because a lot of human efforts and interventions were required. But now, with the AI in place, most of the steps of approving the loan are automated. You can also apply for a personal loan online. The system checks the CIBIL score online along with the overall history of the applicant. Afterwards, the AI presents its recommendation of approval or denial in few minutes.
3. Quick Detection & Prevention of Fraud
Digital fraud has long been a grave concern for the financial sector, including fintech institutions. AI can help you in tracking spending patterns, location, and behaviors. Fintech companies have behavioral profiles of each customer based on this data. Thus if there is something inconsistent or fishy about any transaction, it can be easily detected and prevented in time. Moreover, banks can authenticate every new login and transaction with the existing profile of the customer. This will help in saving millions and billions of digital frauds.
4. Easy & Secure Digital Payments
Machine learning (ML) technology, also known as artificial intelligence, made a significant impact on transactions. After the demonetization in the year 2016 in India, online payments became more popular. ML facilitates India’s growing mobile payment industry, which is projected to reach 1 trillion dollars by 2022.
Although tier 2 and 3 cities are still mainly running on offline payments the growth of digitization is visible. The ML ensures the safety of these transactions. It also makes the process swift across devices and services.
5. 24×7 Customer Support & Stock Market Advice
In today’s hectic lifestyle, customers can’t make time for bank visits. So they need support for their queries and transactions in evening hours and weekend as well. However, not all transactions can be done online. But the majority of issues can be resolved by ML, like checking CIBIL score or account balance.
The ML also provides an edge when it comes to stock market trading. It can analyse company portfolios, monitor major events and trends to provide you with an automated projection.
6. Advancement of Technology
AI is becoming advanced day by day. Currently, AI can help detect a security flaw or fraud transaction. It can analyse the intensity of the breach and can offer a solution accordingly. But it is possible in future that fintech companies will have systems that can predict any data breach and prevent it beforehand. Every new invention will bring a new transformation in the fintech industry.
7. Automated Financial Prediction
Every fintech company which runs on a large scale needs closely accurate financial prediction. But it takes a lot of time, money and energy if you do manual analysis. The AI can assess the market trends and data to support or improve your financial prediction. Not only fintech but other sectors can also take advantage of AI’s predictive analysis. It can help them in better resource and revenue management. This analytical algorithm provides a competitive edge and maximises profit.
Apart from all the above benefits, AI does the most vital task of keeping the data secured and confidential. Based on the progress to date, we can safely say that machine learning is the future of fintech companies. So if you are from the banking or financial sector, it’s time to evaluate the aspects which can be enhanced with AI. And as a customer, you are going to witness AI making your life easier with each advancement.