Fintech uses innovative software and digital tools to support different financial functions, such as financial literacy and education, banking, and investment. Fintechs use new technology and innovation to develop improved financial services for both end users and enterprises. They are responsible for personal financial management, insurance, payment, asset management, credit, and digital payments.
Fintech has made it possible for people to use products and services at a lower cost. For example, international money transfers were extremely costly because large banks controlled the market. Today, however, there is a host of fintech companies that allow users to transfer money to anywhere in the world at a much lower cost directly from their mobile phone. Since Fintech companies tend to be quite small in size, they can innovate faster when starting up and have a much lower cost basis, and they can, therefore, transfer enormous savings to the consumer. Traditional banks and companies of financial services simply cannot compete.
The profound customization of financial services enables FinTech to anticipate customer needs without the consumer acting. As AI and machine learning generate and process the financial and non-financial data of individuals, AI connects end users and FinTech companies to interact continuously. AI also helps to assess lenders and debtors in order to accelerate financial service processes and improve customer experience. Due to the new type of relationship developed with consumers on a scale, AI redefines and applies the concept of real-time to finance.
An AI-powered chatbot can provide an instantaneous assessment of the credit risk of a client, allowing consultants to create the most suitable offer. The use of (Artificial intelligence) AI for subscription services increases the efficiency of the proposals made and improves the customer experience by accelerating the process and the turnaround time of these operations.
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Robotic customer service automation plays a key role in helping customer support agents automate time consumption and error-prone manual tasks. The same automation can also be applied to self-service processes in which a customer service representative is not involved or required. According to a P&S Market Research study, the RPA market is expected to reach $8.6 billion by 2023, growing at a CAGR of 36.2 percent in 2018-2023. RPA can, however, be used more than just for customer engagement. It can transform back-office processes and free staff from repeated tasks to focus on more complex and value-added work.