Financial institutions around the world have successfully embraced AI in their operations to improve the efficiency and accuracy of their operations. Business leaders are exploring opportunities to integrate AI into their tech stack to reduce fraud and optimize product personalization.
A recent report from Allied Market Research “AI in Fintech Market: Global Opportunity Analysis and Industry Forecast, 2021 – 2031” suggests that the market size of AI in FinTech worldwide was approximately US$ 8.23 billion in 2021. The report also highlights that the market size is predicted to reach US$ 61.30 billion by 2031, growing at a CAGR of 22.5% during the forecasted period from 2022 to 2031.
Here are a few reasons why CFOs should consider integrating AI into their Fintech stack to improve the overall efficiency of their operations:
Financial institutions can integrate analytics tools with Artificial Intelligence (AI), and Machine Learning (ML) to make accurate data-driven decisions. Every FinTech stack should have tools that enable them to make strategic data-driven changes to their RevOps. It is crucial for all businesses to analyze the changing customer behavior to get detailed insights into the buyer’s personas. Getting detailed insights into the customers will help financial institutions to make accurate financial risk decisions. AI and ML frameworks will help businesses get accurate reports of every aspect of their operations to make strategic changes to improve efficiency.
Identifying financial fraud
FinTech enterprises that execute transactions and payments have potential risks of fraud which can have a devastating impact on their organization.
Businesses that successfully integrate AI will be able to identify potential frauds in real-time and mitigate them to protect the customers.
As the entire world has moved toward a digital era, it has become crucial for financial institutions to integrate tools that strengthen the overall security of the business network. Integrating security tools in the FinTech stack with inbuilt AI will help businesses to spot the patterns in fraud behavior to minimize the risks. Security monitoring strategies should have tools that are capable of detecting vulnerabilities, suspicious behaviors, and patterns. Business leaders are increasingly integrating AI into their FinTech stack to improve their cybersecurity posture because they are even capable of mitigating vulnerabilities in the early stages of their lifecycle.
Finance industry veterans are leveraging AI in their FinTech stack to revolutionize their business operations with automation. FinTech tools with Artificial Intelligence, automation, and Machine Learning algorithms will help businesses to automate the majority of their operations without compromising on accuracy. Automating the workflows helps businesses to reduce the pressure on the workforce so that they can focus on accomplishing other critical goals. Enterprises that have successfully embraced RPA and AI into their FinTech stack are able to invest money in creative and profitable ways.
Enhanced customer experience
Businesses in financial services face tremendous competition that they need to withstand to have a competitive edge in the market. Leveraging AI into the FinTech stack will help businesses enhance the customer experience by personalizing their service and products. It is one of the most effective ways to create a loyal customer base. AI in the FinTech stack is a perfect way to deliver top-notch services at all touch points.
Financial institutes are scaling exponentially, which makes it a necessity for them to integrate AI into their tech stack to enhance their performance. Integrating Artificial Intelligence into the FinTech stack will help businesses to seize all the opportunities without compromising on security or accuracy.