The FinTech industry is changing, and it’s changing fast. New technologies are emerging every day that have the potential to change the way we do things. Artificial intelligence (AI) has been around for a while but is becoming more and more prevalent in FinTech as time goes on. Here are five ways AI will change the financial technology industry in the future. 

Top Fintech App Development Company

Improve UX

The use of AI will help in improving the user experience for customers. Chatbots serve as a convenient way for customers to get answers to questions or queries. They can also be used in generating leads and securing conversions by guiding potential customers through the different stages of their decision-making process.

Image processing can identify images and make predictions based on their content. It is possible, for example, to identify a photograph of an official document like a passport, and based on its machine identification and certain key data points, make certain predictions about the customer—assuming they are the legitimate owner of the passport—and use that information to minimize friction in onboarding processes. 

Voice recognition can further enhance these experiences by reducing friction in communication with businesses via phone calls. 

Augmented reality (AR) and Virtual Reality (VR) could be used to create immersive experiences that also provide information relevant to users’ needs while they shop online or conduct other activities.

Through AI, it is also possible to provide highly personalized experiences based on individual customer profiles generated through predictive analysis using past purchase behaviors and other data points. This includes providing relevant product recommendations using recommendation engines that apply artificial intelligence algorithms for delivering highly targeted recommendations that have been known to increase conversion rates by up to 20%. 

In addition, automated processes such as personally tailored emails sent automatically at appropriate times could improve customer retention rates significantly if optimized properly

Reduce The Cost Of Development

One of the biggest benefits of AI for FinTech companies is that it makes product development a more cost-effective process. The ability to develop cutting-edge financial apps that deliver powerful results depends on having access to quality talent. As the competition for top-tier talent grows, companies must do more than keep up with market trends when developing new products—they must stay ahead of them.

To accomplish this, they need an edge over competitors, and AI can provide this by improving the development process in three key ways:

• By helping to develop AI-powered apps that provide real value to users;
• By enhancing the security of your company’s app; and
• By improving your end user’s experience throughout their journey with your app.

Enhance Security

The financial sector is seeing a rise in cybercrime, particularly fraud. In 2019, the number of detected security incidents rose to 1,473 according to the FCA (Financial Conduct Authority). AI can significantly lower the risk of cyberattacks and prevent fraud by increasing the speed of detection, but also by preventing them from happening in the first place. While it’s important for companies to have a large team on board that focuses on information security, AI can enhance this process.

Also Read: Top 10 Trends That Will Reshape The FinTech Sector in 2022

AI can be used to detect phishing attacks. By scanning vast amounts of data with machine learning algorithms it’s possible to detect unusual behavior in your customer base that might indicate an attempted attack. AI can also be used to detect credit card fraud: For example, if a transaction occurs from a different location than usual or late at night when the individual was previously sleeping then this would be flagged as unusual activity. Artificial intelligence will help companies across all industries improve their cybersecurity.

Improve Customer Insights

As new AI and analytics tools arise, customer insights and satisfaction will start to rise. In the future, interactions with customers will be more human-like than ever before. Customer experience and service are sure to improve. By using personal information gathered from digital data sources such as social media platforms, purchases, emails, phone calls, and other digital footprints left by customers, customer insights can be better understood. These customer insights can help financial institutions..

• Improve customer satisfaction
• Improve customer experience
• Improve customer retention
• Reduce customer churn
• Improve customer engagement
• Improve loyalty
• Improve service
• Do more effective profiling
• More precise targeting
• Better support

Engage Customers Better

The customer experience is a major priority for Fintech companies. Customers demand more from businesses than ever before, and fintech companies must deliver or risk losing customers.

Also Read: How FinTech Startups Are Making Life Easier

Artificial intelligence can help you accomplish this task by delivering personalized marketing, financial advice, customer service, and new products and services. AI can also improve the quality of your customer service by making it easier for you to respond to common queries quickly.

Final Thoughts 

What if I told you that artificial intelligence could soon be making a difference in your finances? What if I also gave you a reason to believe it would play an increasingly important role in your banking transactions? These are just a few of the questions artificial intelligence is poised to answer. AI is set to revolutionize the FinTech industry and transform the banking sector for the better. From fraud prevention to customer experience, artificial intelligence will give banks a new way to approach their customers while keeping them safe and secure.