As a previous article advanced, artificial intelligence is
being used in the fintech sector to
refine robo-advisors and process optimisation. This post will look at more of
its applications.
Credit scoring
Current credit scoring systems are
outdated. Decisions are based on demographic profiles, such as occupation, age,
race, gender, etc. However, the person making the application is not
considered. Thanks to artificial intelligence and machine learning, companies
are able to profile customer risk more accurately by taking into account the
person, and not stereotypes. Because of these engaging technologies, non-performing
loans can be decreased by up to 50%. Moreover, firms are less likely to lend to
risky clients and customers can access financial services faster. Loan-decision
making is instant.
Security
A study conducted last year revealed that more than 55% of businesses across
the world reported frauds in 2020. Some of the major concerns are linked to
account opening and take-over fraud. With criminals having more opportunities
nowadays, providers have to be one step ahead and use the latest technologies
to ensure their clients are protected. It is also vital that customers are
aware of this. The upcoming days will see an increase in artificial
intelligence and machine
learning security solutions. These innovations can be used to
analyse documents for account registration or to detect anomalies in patterns
within accounts.
AI and ML can help prevent frauds from occurring © Royalty-free image
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