2023 has seen a lot of discussion about AI in general, and how it will transform businesses. To kick off 2024, I want to share how AI is impacting the fintech industry specifically to improve processes for businesses and outcomes for consumers.
Algorithmic Trading
Current uses of AI demonstrate the great potential for its use in trading. We’re not quite there yet, but developing AI over 2024 will lead to algorithms that can analyse trading data and execute trades.
Using AI can improve the efficiency and speed of trade decisions, minimise human biases, and improve reactions to risks and market changes.
The algorithm trading market is expected to reach $3.56 billion by 2030, achieved through the continued enhancement of AI adoption.
Fraud Prevention
£1.2 billion of UK consumers’ money was lost in 2023 due to fraud.
Fraud has a devastating impact on individuals and businesses, and one of the use cases I am most excited to see this year is how AI can be used to tackle fraud.
A lot of fraud detection currently relies on manual review which doesn’t always catch the increasingly complex schemes of fraud.
AI can greatly streamline fraud detection and present information to investigators, in order to see more prevention.
AI tools are collecting vast amounts of data around transactions, analysing the links between entities, recognising unusual patterns or behaviours, and then learning from investigation outcomes.
Increasing the usage of AI tools will improve the fraud detection process and free up ‘human’ time for supporting those affected by fraud – perhaps the most important role.
Customer Service and Experience
Over the last five years, financial services have changed a lot. An industry that used to be led by the interests of banks is now driven by customers.
Now more than ever, one way new fintechs and other businesses differentiate themselves is through personalised customer service and experience.
According to McKinsey, two-thirds of millennials expect real-time customer service, and 75% of all customers want a consistent cross-channel experience.
How can generative AI help create positive experiences for customers getting in touch with your brand?
- Real-time responses in line with customer expectations
- Keep enquiries on a digital platform, as per customer preference
- Source information on customers and transactions
- Enable human teams to better support customers
AI doesn’t need to remove the much-needed human element of customer service, but enable customer service teams to better help customers.
If 2023 was about getting to understand AI, 2024 will see fintech businesses adopt AI at pace to improve their operations and customer experience.
Get in touch to build your AI strategy.
