Fintech

When it comes to finances and technology, artificial intelligence (AI) has proven to be a rising star in this boundless sphere. While the presence of AI might be discreet to an average customer, such fields as banking, trading, fraud prevention, market investments, and insurance have shown a significant efficiency and profit upsurge since the introduction of AI, machine learning, deep learning, and advanced algorithms—with an even more promising future to come. 

Seamless Insurance Management

The process of purchasing insurance can be often strenuous—for customers and insurers alike. Customers struggle to see which product is the most reliable, beneficial and suits them best. Insurers, on the other hand, endeavor to advertise their product to the target audience and establish proper legal prevention. Here, AI can not only help to conveniently recommend the best product for a customer but it can also ensure that the processing behind insurance granting is seamless thanks to the involvement of algorithm-powered risk profiling—resulting in increased customer satisfaction as well as sales amounts. Insurance providers can also benefit from smart advertising of insurance plans—i.e., detecting people with specific potential needs and offering relevant products to them.

Improved Credit and Loan Decisions

As regular finance mechanisms, credits and loans are often intertwined with bothersome waiting periods, rigid regulations, and risks involving no returns. Incorporating AI into processes can significantly reduce applicant data verification periods (underwriting), ensure due diligence for loan granting and reduce general credit risks.

Algorithmic Trading

The human factor has proven to generate definite adverse risks in the history of the financial industry. Over the years, such actions have resulted in multi-billion-dollar regulator fines, tampering by rogue traders and operational incidents due to human error. With algorithmic trading, AI utilizes machine learning to circumvent human interaction and emotion-based sales, producing more accurate trade orders, reduced transaction costs—including more profitable trade prices—as well as allowing multiple accounts to trade at once.

Investment Portfolio Optimization

Investors value their investment portfolios in gold’s worth—and rightfully so. Well-set-up asset management helps them to achieve maximum potential profits while avoiding unfavorable risks. However, employing an unoptimized portfolio—whether due to inexperience, human error, or emotional bias—may cause investors’ plans to crumble and backfire. Language-processing and machine learning algorithms ensure human interference is curtailed and portfolio strategies are automated—creating profitable and optimized indexed portfolios.

Fraud and Cyber Attack PreventionEach year, major companies suffer devastating reputational damage due to data breaches and payment frauds, leading to exposure of not only company but also customer information—losing billions in the long run. Research shows this threat is expected to encourage a global loss of $200 billion over the next five years. These facts compel customers to seek out financial institutions that have the means to combat such hazards. Thanks to AI’s deep learning method, malicious irregularities and patterns can be scrupulously detected and ruled out—something that the human eye is sure to miss.