Impact of AI on Fintech and Payments
Quite recently, one of my acquaintance while communicating with Google Home told him – You are useless to which the machine replied – I will convey this to my engineer so that they could refine me and make me more useful. My acquaintance and I were shocked by such a meaningful reply from a machine.
So talking about the impact of AI in fintech sector is all about making sense of the data. To answer all such questions as –
In fact, as per CBInsights report , AI has made an enormous impact on the fintech world. There are firms under different categories trying to deliver an intelligent solution. Take a look -
With each vertical of Finance and Banking under development with AI, we could probably witness a hurricane of products in the market. But it’s not the AI that would drive people towards it, it’s the enhanced accessibility to various banking products, convenience ,customized services, speed and above all security that would make an impact in the fintech world.
Challenges of AI in Fintech and Payments World
With an abundance of data how do we access it and how do we make sense of it? These are the two-vital question that needs to be answered and would see a breakthrough in future to decide fintech growth with AI. Sample this –
For AI to work it needs to study pattern and know the behaviour of humans to make a predictive guess on what action should be performed. But how to we conduct the study unless we have the data to access? Agent Banking solution, Digital Wallets or Analytics they cannot make an informed decision unless we program them to do it.
A rural person is facing short of cash, he needs to get his roof repaired as rains are approaching, but also need to pay for his kid’s college fees. He has following options –
The answer suggested by AI would need a through reality check before making an informed decision. The above example was quite straight forward, but the point is that the information is scattered and to make sense of that information we need access to it.
Lastly, comes another challenge to let people adopt it. Money matters are close to people’s heart. So, could the fintech firms and payment channels with their innovations in Artificial Intelligence domain make clients use their technology? An interconnected network that has studied my spending patterns advise me to stop buying that costly attire or process a personal loan from ABC options. Would I listen to it?
While fintech firms focus area is to adopt AI into digital banking, they could leverage the technology to aid in decision making, offering customized products and building end-to-end data products. Welcome to the future!
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Samiksha Seth Content Strategist