Artificial Intelligence (AI) in FinTech

Overview
 

​FinTech is the reference to the application of technology to deliver financial services. FinTech provides new ways to disrupt traditional financial delivery models and improve efficiency, effectiveness as well as customer experiences. It includes a broad range of technological advancements, from mobile banking, digital payments, automated advisors, use of big data, to a myriad of other possibilities.
 

There are a number of related subsectors also worth noting that have either a direct and/or indirect association with existing FinTech solutions. These include InsurTech (Insurance Technology); RegTech (Regulatory Technology) which are solutions that help institutions comply with regulatory requirements; PayTech (Payment Technology) that facilitate digital payments; WealthTech (Wealth Technology) and PropTech (Property Technology).
 

In a broader sense, FinTech also offers opportunities for new innovations that enable transformation for individuals, businesses, institutions and societies. It can provide means to challenge the accepted roles of traditional intermediaries in financial transactions and connect consumers directly to providers. As well as the obvious competitive and cost advantages for businesses and financial institutions, it can also improve financial Inclusion and the lives of vulnerable groups.
 

AI has emerged as a key enabler of the innovation and disruption underway in the FinTech industry. AI technologies, such as machine learning, natural language processing, and data analytics, are now essential components of new projects for forward looking financial institutions and startups. This is because AI can help the automation of processes, increase accuracy, and handle complex tasks at scale. Key areas where FinTech is rapidly evolving are discussed in the following section of this report.