The integration of AI has been becoming a trend since we have seen the arrival of OpenAI’s ChatGPT. Looking at the massive change that this tool of OpenAI provides, various entrepreneurs want to integrate the best use of AI for their projects.
Fintech startup Stripe was also participating in this revolution. The startup had started integrating OpenAI’s latest GPT-4 artificial intelligence model into the digital payment procedure and various products.
Just after Microsoft Corp-based OpenAI revealed that it would release GPT-4, a new version of the powerful AI technology that has created a huge sensation in the world with its ChatGPT, this news became a point of attraction.
Even today, various fintech companies demand the integration of AI into your fintech app. Do you know the reasons behind this? In this post, we have everything about why Fintech and AI will create a new buzz worldwide. So, are you excited to learn further?
If yes, move into the post directly. Also, connect with a top mobile app development company in USA to build your own fintech AI app.
Top Benefits of Integrating AI in Your Fintech App
Want to look at the significant benefits of why you should consider AI for your own fintech app? Consider reading the following:
- Diminish Operational Costs
AI helps every industry to move beyond and expand its reach worldwide. Whether it’s about food delivery, healthcare, on-demand, car rental, etc., the use of AI is increasing to let users enjoy a seamless way to access services conveniently.
The fintech industry is also achieving heights while avoiding the cost of conventional financial institutions. No maintenance charge or physical space is required for a bank to carry out the operations, as everything is digitalized with the arrival of some fintech app. That’s not it! The integration of AI has contributed a lot to bringing better financial products with its predictive analysis, intelligent automation, and other capabilities. Thus, reducing the operational costs for many organizations.
- AI-Powered Financial Advisor
AI-powered virtual assistants can provide financial advice and resolve customers’ queries about financial management, just like chatbots. Using these assistants, users can get a sense of their bank statements, spending habits, and others that will enhance how they manage their assets.
Do you know what makes these AI-powered advisors so dynamic?
They use NLP capabilities and other ML algorithms to study the patterns a user behaves or transacts.
- Financial Reporting Automation
It becomes seamless to develop financial reports from financial data. Yes, it is; banks can easily create reports out of the massive data they have. However, it requires time to ensure the in-depth analysis of data conventionally; with tools like AI, it gets seamless.
“Narrative Science,” a US-based company, has created a tool named Quill using the “Natural Language Generation” that also does the same work as explained in the last para.
While using the analytics processed by NLG, it derives insights from the financial data and thus creates reports. While customizing the reports, financial analysts can set the language, format, and analytics according to their preferences. Isn’t it amazing? If you also want to enjoy this benefit, get in touch with a fintech app development company who will help you build your digital solution.
- Customer Risk Profiling
Fintech companies prepare a profile of their customers based on their engagement with their institutions. However, for this, they must have access to extensive data.
ANNs (Artificial Neural Networks) can do many more wonders as they consist of information-processing models that process the information as our brain does. Not only the networks go through a large set of customer data, but they also build classification models to place users from low to high categories.
Looking at the classifications, banks can be aware of all the potential defaulters and act accordingly to avoid bad outcomes.
- AI Stock Trading
This is another tremendous benefit that AI in the fintech sector provides. Robo advisers analyze the large volume of data, execute trades, and let analysts forecast the market in an enhanced way.
It gets more effortless to mitigate risks and deliver huge returns to the customers. Neurensic, a USA-based company, has created an AI platform to detect complex trading patterns across different markets in real time. Another company GreenKey Technologies, from the same location, has also developed an AI-enabled trading platform that utilizes NLP and speed recognition.
- Credit Worthiness
Most people find their credit scores low as they do not have a clear credit history, so sometimes they don’t receive loans. However, this will not be a topic of concern with the advancements in AI-powered solutions. LendoEFL, a company in Singapore, utilizes AI technology to get a clear picture of the creditworthiness of a potential borrower.
The company mines the users’ data they have provided to social media, geo locations, smartphones, and web browsers and thus started analyzing the various aspects that determine a user’s creditworthiness.
To Sum it Up!
So, this is how AI brings disruptions in the fintech industry. The tech has proved to be a leading solution for various fintech companies and startups looking to make the most of multiple opportunities of digitization with two tremendous technologies. Indeed, an amalgamation of both can let you stay ahead of the curve. Want to learn more?
Get in touch with our leading fintech app development company today. The developers will help you by providing every insight into the same. So, don’t hesitate while booking a consultation with us.