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Artificial Intelligence in Fintech

almost 2 years ago by Luigi Muscat Filletti
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Artificial Intelligence in Fintech

Technology is growing at a rapid rate - the introduction of blockchain and the emerging sector of cryptocurrency is changing methods of online financial transactions and records, increased computational power is empowering organisations’ analysis of figures and statistics, and data is travelling across continents in microseconds. The reality is that we are now living in a world dependent on technology, with the upcoming field of Artificial Intelligence (AI) creating a surge of interest in technology’s advancement and the way it affects how we do business. Sectors of Finance and Technology are seeing an acceleration in recruitment, with the call for talent at an all time high. A demand in workforce is being noticed, with job opportunities in Fintech on the rise - IT jobs in Malta and Banking jobs in Malta are being presented by companies investing in AI technology. So how exactly is AI changing Fintech, and what does this mean for employment?

 

What is Artificial Intelligence?

By definition, AI relates to the theory and development of computer systems to understand and learn human intelligence in order to undergo duties which are normally completed by humans themselves. AI is a learning process of intelligence, where computer systems are set to study and learn human behavioural patterns and actions such as speech recognition, visual perception, language translation, planning and decision-making to gain insight in how to operate in a likewise manner. A common fear is that AI is evolving to take over duties which are currently being executed by people, however AI is in fact promising to create more jobs than it takes away, especially ones which require high-skills in software, data analysis and management.

 

How is Artificial Intelligence being adopted by Fintech?

The Fintech industry is seeking to adopt AI as a means of creating a more efficient and beneficial method of operation. AI has the potential to transform the way Fintech organisations operate, and some companies have already embraced AI features of learning to enhance their product and service experience.

Examples of such features include Financial Forecasting, where AI uses machine learning to automatically learn patterns of financial affairs to predict future financial results based on trends and market data - results such as stock performance in the near future as well as leads on sales and market competition. Such insights could prove to be game-changing and could also contribute to customer acquisition, with AI technology being able to learn customers’ behaviour in the past to make suitable suggestions on targeting and customer loyalty. Such technology can be utilised by professionals within the Financial Services to increase a company’s position in the market.

With regards to Marketing, AI could be an efficient tool to predict the effectiveness of a marketing campaign; analysing user mobile app usage, web activity, and email open and response rates. AI could also tailor-make sale recommendations based on demographics and data on user needs and wants. Predictions on market regime and market stress are also useful insights to any company looking to intensify its competitive edge.

AI can also be used to enhance customer service by building chat-bots to intelligently assist customers with any of their queries. Technical support operators can therefore be assisted in addressing customer problems. Additionally, AI could be used in Fintech to inform customers on financial concerns such as updates on bank account statements, informing customers of upcoming payments, assisting customers in setting realistic budgets and supervising consumer credit score. A special AI feature which is being used today across a few Fintech companies is one which allows customers to balance their budgets based on their income and spending behaviour. Moreover, AI has the ability to assist Risk Management by predicting a potential customer’s creditworthiness by analysing their financial status and history, and also analysing market trends to optimise financial affairs.

Furthermore, AI could strengthen an organisation’s cybersecurity -  the integration of methods of facial and voice recognition are already being used as a means of authentication for customers, but that is only the start of such security procedures. AI can bolster cybersecurity by automating  complex computer processes which can proactively detect cyber attacks and security breaches, and since AI is a learning system, it is continuously acquiring knowledge to be used in analysing and preventing security threats and diverting hackers off track. Such technologies can also work to prevent fraud by analysing historical transaction data and monitoring account activity - AI technologies are also working to detect money-laundering activity by tracing suspicious patterns and signalling any irregularities or unusual behaviour.

 

What does this means in terms of Recruitment?

All this would undoubtedly demand a wide-ranged workforce which boasts of talent and experience in Fintech-related fields. Tech-based roles will be sure to increase, such as Data Analysts & Data Miners, Data Scientists, Technical Architects, Software Developers and Programmers,  Network Engineers, Full Stack Developers as well as new jobs which are being created by AI, such as Algorithm Developers, Machine Learning Engineers, Computational Engineers and AI Specialists, to name a few. With regards to Financial Careers, Accountants & Auditors, Investment Analysts, Corporate Administrators, Compliance Managers, Risk Management Specialists, Cost-Controllers and Fund Administrators, to mention some, will all be introduced to AI technologies to understand its framework to implement in their operations.

Besides Fintech, other industries are also embracing the technological progress of AI - Engineering and Manufacturing, Healthcare and Education are all adopting AI services to enhance output efficiency, thus creating more opportunity for Tech-based professionals to be recruited by companies in these sectors to construct AI frameworks.

 

The Future of AI
Artificial Intelligence is still in its early stages of development, however is definitely promising to strengthen various industries with its ground-breaking technological advances, the necessary step is to have organisations jump on board and acquire AI services in their operations. AI is set to amplify Fintech operations in relation to online trading, customer engagement and cybersecurity, and is therefore sure to introduce multiple platforms which could enhance an organisation’s operations, hence steadily increasing recruitment across Finance and Technology sectors.