How AI is helping consumers in fintech
Over the years, AI in fintech has experienced exponential growth, fuelled by various advancements. For instance, AI has proven vital in tackling fraudulent activities, allowing automated decision-making that is data-driven, improving risk assessment, and much more. Such improvements have enabled fintechs to innovate rapidly and keep up with the evolving needs of consumers.
According to Mr Gautam Sinha, CEO, LTFLoW (LoanTap Group)”The constantly improving AI algorithms can analyse vast amounts of data to assess creditworthiness accurately, which enables financial institutions to provide credit to those with limited credit histories or from unserved and underserved communities”.
Eliminating bias and promoting fairness: As is widely known, bias in AI models has been a persistent cause of concern, as it can lead to inequalities at a societal level and discriminatory processes. Explainable AI, a part of AI that is becoming more prevalent has the potential to identify and correct this bias in AI algorithms with insights into how decisions are shaped by various data inputs.
In other words, explainable AI algorithms are transparent about what influences their outcomes. This enhances trust and compliance, which are incredibly crucial in the heavily regulated fintech sector. Fintechs can then act accordingly and rectify this to make sure that there’s fairness in their services.
Facilitating smoother processes: Moreover, thanks to AI, processes have been streamlined, and tasks such as loan approvals, account management, and transaction processing can now be executed quickly and efficiently, improving overall customer satisfaction.
Plus, the introduction of AI-powered chatbots has made it possible for customers to receive around-the-clock assistance, overcoming the limitations of conventional banking hours and geographical constraints. Additionally, natural language processing chatbots have become very common now, which eliminates the language barrier and facilitates seamless query resolution for users.
Encouraging responsible consumer behavior: Due to the increasing awareness of AI amongst consumers, they are becoming more responsible about their online financial behaviour. This leads to an improved credit profile and, consequently,
enhances their odds of being able to access credit.
AI in fintech is empowering consumers with inclusive, accessible, and efficient financial services that cater to their diverse needs. By streamlining the underwriting process and providing a more accurate assessment of customer’s creditworthiness, AI enables financial institutions to serve a much wider base of customers effectively.
