Logo
X
  • Who We Serve
    • By Role

      • CEO / Business Executives
      • CTO / IT Professionals
      • COO / Operations Head
    • By Industries

      • Healthcare
      • Digital Commerce
      • Travel and Transportation
      • Real Estate
      • Software and Technology
  • Our Technology Focus
    • Web
    • Mobile
    • Enterprise
    • Artificial Intelligence
    • Blockchain
    • DevOps
    • Internet Of Things
  • Discover Daffodil
    • About
    • Leadership
    • Corporate Social
      Responsibility
    • Partners
    • Careers
  • Resources
    • Blog

    • E-Books

    • Case Studies

    • View all resources

  • Who We Serve
    • By Role

      • CEO / Business Executives
      • CTO / IT Professionals
      • COO / Operations Head
    • By Industries

      • Healthcare
      • Digital Commerce
      • Travel and Transportation
      • Real Estate
      • Software and Technology
  • Our Technology Focus
    • Web

      Create responsive web apps that excel across all platforms

    • Mobile

      User centric mobile app development services that help you scale.

    • Enterprise

      Innovation-driven enterprise services to help you achieve more efficiency and cost savings

      • Domains
      • Artificial Intelligence
      • DevOps
      • Blockchain
      • Internet Of Things
  • Discover Daffodil
    • About
    • Leadership
    • Corporate Social Responsibilities
    • Partners
    • Careers
  • Resources
    • Blog

      Insights for building and maintaining your software projects

    • E-Books

      Our publications for the connected software ecosystem

    • Case Studies

      The impact that we have created for our clients

    • View all resources
daffodil-logo
Get in Touch
  • What We Do
    • Product Engineering

    • Discover & Frame Workshop
    • Software Development
    • Software Testing
    • Managed Cloud Services
    • Support & Maintenance
    • Smart Teams

    • Dedicated Teams
    • Offshore Development Centre
    • Enterprise Services

    • Technology Consulting
    • Robotic Process Automation
    • Legacy Modernization
    • Enterprise Mobility
    • ECM Solutions
  • Who We Serve
    • By Industry

    • Healthcare
    • Software & Technology
    • Finance
    • Banking
    • Real Estate
    • Travel & Transportation
    • Public Sector
    • Media & Entertainment
    • By Role

    • CEO / Business executives
    • CTO / IT professionals
    • COO / Operations
  • Our Expertise
    • Mobility
    • UI/UX Design
    • Blockchain
    • DevOps
    • Artificial Intelligence
    • Data Enrichment
    • Digital Transformation
    • Internet of Things
    • Digital Commerce
    • OTT Platforms
    • eLearning Solutions
    • Salesforce
    • Business Intelligence
    • Managed IT Services
    • AWS Services
    • Application Security
    • Digital Marketing
  • Case Studies
  • Discover Daffodil
    • About us
    • Partnership
    • Career & Culture
    • Case Studies
    • Leadership
    • Resources
    • Insights Blog
    • Corporate Social Responsibility
Get in Touch
blog header image.png

Software Engineering Insights

5 Ways AI can Transform Fintech Industry

Feb 25, 2020 6:16:00 PM

  • Tweet

AI in fintech

Fintech is one of the fastest-growing industries, owing to the rising penetration of internet users. There is a paradigm shift to mobile devices for performing financial transactions and related actions. 

Behind the booming fintech market, several technologies are contributing to making the system fast, secure, and scalable. One such technology is Artificial Intelligence (AI). The AI in the fintech market is estimated to reach USD 35.40 billion by 2025 (Mordor Intelligence). 

Artificial Intelligence is the simulation of humans in machines, programmed to think like humans and mimic their actions. How this ability of machines to act like humans can help the fintech market to evolve? In this article, we go through 10 applications of Artificial Intelligence, its subdivision technologies, and how they can bring a difference to the way processes and operations are managed in the fintech industry.

1. Digital Financial Coach/Advisor 

Transactional bots are one of the most popular applications of Artificial Intelligence, irrespective of the industry. In finance, a transactional bot offers financial advising and coaching services. In short, a bot can be considered as a digital assistant who guides the users about their financial plans, spending, and savings.

Setting up a digital assistant for users or customers in the finance domain improves engagement and overall experience with the product/service they are dealing with. For building digital assistants, Machine Learning (ML) and Natural Language Processing (NLP), sub-divisions of AI are used. 

2. Fraud Detection & Prevention 

With third-party applications (like Whatsapp) integrating in-app transaction system, a rise is expected in frauds and unauthorized transactions. This has lead to the need for incorporating AI technology in the fintech market. 

Machine Learning and Robotic Process Automation technologies are gaining a lot of traction in the fintech industry for detecting patterns that inform about fraudulent cases. For example, the insurance industry can use AI for identifying fraudulent claims. These automated analyzers and algorithms pay attention to the info that humans can give a miss. 

3. Algorithmic Trading

Algorithmic trading uses a pre-programmed set of instructions to analyze data and make decisions, faster than humans. This is done through one of the most flexible AI technology- Machine Learning (ML).  

The only requisite that ML models have is a huge amount of data to train the models, which can be current or historical market data. More is the data, easier it would be for the model to make precise decisions. One of the most advanced use cases of AI in fintech is that these algorithms detect patterns of data, faster than human traders can do. Investment companies today are making the most of algorithmic trading to make portfolio suggestions to meet investors’ demand individually. 

4. Automated Claim Processing 

Consumerization is the impact that consumer-oriented technologies (such as smartphones and messaging apps) have on businesses. Leveraging the benefits of consumerization, businesses, including the insurance companies are investing in consumer-centric platforms to reach out to customers or interact with them where they spend a high percentage of their time. An example of it is an AI-powered chatbot. 

Claim processing is one of the significant and tedious tasks that the insurance companies have. It follows the standard procedure of determining customer problems (sickness, accident, etc.), analyzing genuineness of the cases, activating the claim process, etc. The entire cycle is lengthy and complicated. The article shared below describes how chatbots (an application of AI) can help insurance companies to settle claims, faster.

ALSO READ: Why Insurance Companies are Betting-Big on AI-Powered Chatbots?

5. Client Risk Profiling 

For the finance sector, such as banks and insurance companies, client profiling based on their risk score is very critical. For categorizing clients based on risk associated with their profile AI can be a great help. Using AI technologies like Artificial Neural Network (ANN), the classification models can be trained with historical or pre-labelled data to rate the client profile from low to high.

Using AI to Improve Fintech Services 

The examples shared above introduces us to the potential of Artificial Intelligence in the fintech industry. To know how AI can empower your fintech organization to improve efficiency, reduce cost, and automate processes, set-up a free consultation with our technology experts. 

Topics: Artificial Intelligence Fintech

Archna Oberoi

Written by Archna Oberoi

Content strategist by profession and blogger by passion, Archna is avid about updating herself with the freshest dose of technology and sharing them with the readers. Stay tuned here as she brings some trending stories from the tech-territory of mobile and web.

Previous Post

previous_post_featured_image

5 Technology Trends Transforming the Public Sector

Next Post

next_post_featured_image

7 Application Areas of Python Programming Language

Stay Ahead of the Curve with Our Weekly Tech Insights

  • Recent
  • Popular
  • Categories

Lists by Topic

  • Software Development (174)
  • Artificial Intelligence (169)
  • Mobile App Development (166)
  • Healthcare (137)
  • DevOps (80)
  • Digital Commerce (60)
  • Web Development (57)
  • CloudOps (54)
  • Digital Transformation (37)
  • Fintech (36)
  • UI/UX (29)
  • On - Demand Apps (26)
  • Software Architecture (26)
  • Internet of Things (IoT) (25)
  • Open Source (25)
  • Outsourcing (24)
  • Blockchain (21)
  • Newsroom (21)
  • Salesforce (21)
  • Technology (18)
  • Software Testing (16)
  • StartUps (16)
  • Customer Experience (14)
  • Robotic Process Automation (13)
  • Voice User Interface (13)
  • Javascript (11)
  • OTT Apps (11)
  • Business Intelligence (10)
  • Data Enrichment (10)
  • Infographic (10)
  • Big Data (9)
  • Education (9)
  • Microsoft (6)
  • Real Estate (5)
  • Banking (4)
  • Game Development (4)
  • Enterprise Mobility (3)
  • Hospitality (3)
  • eLearning (2)
  • Public Sector (1)
see all

Posts by Topic

  • Software Development (174)
  • Artificial Intelligence (169)
  • Mobile App Development (166)
  • Healthcare (137)
  • DevOps (80)
  • Digital Commerce (60)
  • Web Development (57)
  • CloudOps (54)
  • Digital Transformation (37)
  • Fintech (36)
  • UI/UX (29)
  • On - Demand Apps (26)
  • Software Architecture (26)
  • Internet of Things (IoT) (25)
  • Open Source (25)
  • Outsourcing (24)
  • Blockchain (21)
  • Newsroom (21)
  • Salesforce (21)
  • Technology (18)
  • Software Testing (16)
  • StartUps (16)
  • Customer Experience (14)
  • Robotic Process Automation (13)
  • Voice User Interface (13)
  • Javascript (11)
  • OTT Apps (11)
  • Business Intelligence (10)
  • Data Enrichment (10)
  • Infographic (10)
  • Big Data (9)
  • Education (9)
  • Microsoft (6)
  • Real Estate (5)
  • Banking (4)
  • Game Development (4)
  • Enterprise Mobility (3)
  • Hospitality (3)
  • eLearning (2)
  • Public Sector (1)
see all topics

Elevate Your Software Project, Let's Talk Now

Awards & Accolades

dj
dj
dj
dj
dj
Aws-certification-logo
microsoft-partner-2-1
microsoft-partner
google-cloud-partne
e-UI-Path-Partner-logo
partner-salesforce-reg-consulting-partner-1-1
daffodil-logo
info@daffodilsw.com
  • Home
  • About Daffodil
  • Locations
  • Privacy Policy
  • Careers

© 2025 Daffodil Unthinkable Software Corp. All Rights Reserved.

[fa icon="chevron-up"]