Fintech artificial intelligence applications continue expanding across the financial services industry (payments, insurance, deposits and lending, funding, investing, and other business services). Banks represent a major target as branches close, employee headcount drops, and profits stagnate.
What is Artificial Intelligence?
… (AI) is the theory and development of computer systems that can perform tasks that normally require human intelligence such as visual perception, speech recognition, decision-making, and translation between languages. AI can also be used to analyze the data produced by IoT, social media, mobile phones, and other sources to provide active learning analytics that can create a virtuous circle.” (Gaurav Sharma)
Siri, Cortana, Google Assistant, Amazon’s Echo and Home are consumer examples.
Fintech Artificial Intelligence Opportunities
CBInsights’ diagram of fintech sectors and companies below provides a visual of the industry’s growth (click the image to see the full article):
Are Financial Services Companies Ready for Artificial Intelligence?
A Forbes article, quoting a survey of over 400 banks, raises the readiness issue:
According to a Euromoney Survey and report commissioned by Baker & McKenzie, out of 424 financial professionals, 76% believe that financial regulators are not up to speed on AI and 47% are not confident that their own organizations understand the risks of using AI. Additionally an increasing reliance on artificial intelligence technologies comes with a reduction in jobs. Many argue that the human intuition plays a valuable role in risk assessment and that the black box nature of AI makes it difficult to understand certain unexpected outcomes or decisions produced by the technology.”
With AI technology still nascent, perhaps the best bet for banks is to use it in conjunction with staff. While we live in the age of AI, we’re not quite ready for auto-pilot just yet.”
Technology marches forward. Young, aggressive fintech firms continue expanding into all areas of financial services. Time will tell if traditional banking, insurance, and other financial companies can stay competitive.