According to Grand View Research, the volume of AI tools in fintech reached USD 9.45 billion in 2021, with experts predicting this to continue to rise at a rate of 16.5% through 2030. Here are a few key ways AI is disrupting fintech:
- Enhanced fraud detection – AI can process volumes of data and deliver unique security solutions that track suspicious behavior and identify fraudulent activities. AI-powered security systems will boost user trust, leading to better user acquisition and retention rates as well as increased capital fundraising.
- Personalized user experiences – personalization is becoming the leading trend for fintechs, especially among neo banks startups. AI can personalize customer assistance by analyzing customer requests and previous experiences to better understand each customer’s intentions and needs.
- Credit risk evaluation – AI can make credit assessments by analyzing a vast amount of publicly-available information, including financial records, credit histories and even social media profiles.
- Financial market forecasts – while data-driven investment decisions are nothing new, there is an increasing trend to use AI solutions to conduct market analyses. This is particularly the case among crypt enthusiasts.
- Compliance – AI-driven tools can track transactions and user behaviors, ensuring compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations.