Artificial Intelligence (AI) is becoming an integral part of all aspects of human life. Many people cannot imagine a future without AI, with companies implementing AI-based solutions across various fields and marketers and writers using AI solutions despite ethical restrictions.
AI has evolved beyond a mere technology. It is rapidly transforming the way humanity lives, optimizing and improving processes around it.
The impact of AI is particularly noticeable in the financial industry, where we encounter chatbots every day that help us interact with customers. However, there are many other ways in which AI can help the financial sector. We asked a few experts about this and share their valuable insights.
How long will AI’s dominance in banking last?
Brian Prince, Founder & CEO, Top AI Tools, notes: “I think AI is the next evolution for banking — it will dominate apps and technology until the next iteration comes along, particularly in areas like customer service, fraud detection, and personalized banking. And who knows what’s next? Banks and fintechs must continue to address issues inherent in AI, including privacy concerns, and build from there.”
John Kelly, Area Vice President of Financial Services at LivePerson, says the following:
“AI has a huge part to play here because the banking experience can be transformed with digital conversations — which can be made more efficient and personalized thanks to agent-facing and customer-facing AI tools. According to LivePerson’s analysis of millions of customer conversations, almost 2 out of every 3 financial services conversations (62.5%) can be automated with bots — with better outcomes including boosts in customer satisfaction (many brands have seen results around 20%) and reduced customer care costs (up to 50%).”
How can AI be used in fintech?
Angel Vossough, BetterAI Co-Founder & CEO, talks about the use of AI in the venture capital field:
“AI is beneficial for venture capital firms in several key ways:
Deal sourcing and screening: AI algorithms can efficiently scan through vast amounts of data (company information, financials, industry trends, etc.) to identify promising startups that match a VC’s investment criteria. This saves significant time compared to manual screening. For example, EQT Ventures built Motherbrain, an AI platform that helps source and evaluate startups. AI can analyze diverse data sources like news, social media, patents, and pitch decks to surface promising investment opportunities that align with a firm’s thesis. This allows VCs to cast a wider net and prioritize the most high-potential deals.
Due diligence: AI tools can assist in the due diligence process by analyzing a startup’s financials, market size, competitive landscape, and more. Natural language processing (NLP) can be used to extract insights from unstructured data like news articles and social media. Correlation Ventures uses AI to predict a startup’s success based on patterns from their database of over 100,000 financings. AI can streamline the review of financials, customer data, and other key documents, helping VCs make more informed decisions quickly. Predictive models can also forecast market conditions and assess portfolio company risks.
Portfolio management: AI can monitor portfolio companies, track key metrics, and alert VCs to potential issues or opportunities. Machine learning models can also predict a startup’s future performance and the optimal timing for follow-on investments or exits. For instance, Signalfire uses AI to provide real-time insights into their portfolio companies’ growth. AI can continuously monitor portfolio health, detect early warning signs, and recommend interventions to improve outcomes. Optimization algorithms help VCs allocate capital more effectively across their portfolio.
AI enables VCs to exploit their rich data assets and focus their judgment on higher-level strategic decisions. By leveraging AI across the investment lifecycle, VCs can make more data-driven decisions and gain insights that would be infeasible to identify manually.”
Another expert, Mikhail Dunaev, Chief AI Officer at Comply Control, a UK company that specializes in cutting-edge technology solutions for banks, commented on this:
“In the realm of fintech, AI’s potential is enormous. It offers ways to enhance the industry’s routine processes, ushering in automation, improved efficiency and reduced operational costs. AI-powered systems can provide robust safeguards, protecting customers from ever-evolving fraud threats with real-time monitoring and detection capabilities. Additionally, AI enables personalized banking experiences, tailoring services to individual preferences and behaviors.”
What trends in AI in fintech can you identify?
“As AI continues to evolve and mature, its role in banking will only expand. Financial institutions that embrace AI-driven innovations stand to gain a competitive edge, offering customers seamless experiences while safeguarding their financial interests. We stand on the cusp of a new age in banking, with AI being not merely a tool but an indispensable ally in driving progress. Its adoption heralds a future of streamlined, personalized, and fortified financial services”. — adds Mikhail.
Brian adds to this: “I’m seeing AI used a lot today in stocks, with robotrading platforms helping to democratize investing for retail investors. While these AI-guided investment apps aren’t perfect, they can help beginners get more comfortable buying and selling stocks. Using AI to guide your investment decisions as a beginner helps take some emotion and impulsiveness out of your choices to buy or sell at a specific time, so you know you’re making a decision based on the numbers and not gut instincts.
Even professional stockbrokers are embracing AI to sift through massive amounts of data. Unlike retail investors, however, brokers on Wall Street must go several steps beyond AI to make the successful trades that set them apart.”
