The finance sector is evolving. From traditional currencies and transactions, it has welcomed new possibilities in trade facilitated by artificial intelligence. In fact, almost all new banking methodologies have AI in their fabric.
According to the Business Research Company, the AI-enabled Fintech market is predicted to grow to $31.71 billion by 2027. This is a huge boost considering that the fintech industry is new and emerging.
Integrating AI into finance is crucial since money is constantly circulating and used by various industries daily. Hence, it must be considered how financial innovation through AI will happen.
This makes outsourcing AI development a crucial aspect of the fintech industry to continue its growth projections.
But how do fintech companies benefit from outsourcing AI development? What is the current landscape that enables this shift?
Benefits of outsourcing AI development for Fintech companies
Here’s how Fintech companies can leverage the use of AI to their advantage:
The digitalization of banking and finance
With the development of technology and financial methods, fintech has become more user-centric.
The digitization of financial transactions in online statements, money transfers, and online purchases has decentralized the traditional authority of banks and financial institutions.
This decentralization has empowered the users themselves. They do not need to go to the bank to transact or seek assistance. In the comforts of their homes, they can check, review, and transact on their own.
Even stock trading, which was traditionally handled by bank portfolio holders, is turned over to the user by using new software applications.
In a nutshell, AI has greatly revolutionized financial services by empowering self-help mechanisms, making it more efficient and personalized.
Better security
The decentralization of financial services is great. It has greatly improved customer experience and increased the level of efficiency and security of accounts.
However, the technology to make online threats and hacking has also modernized. In fact, the Federal Trade Commission has reported 4.7 million incidents of scams, identity theft, and other online illegal activities.
These scam activities create a huge toll on the finances of individual accounts and private enterprises. This is where outsourcing AI development comes into play.
With the increasing incidents of scams and illegal activities, cutting-edge tools allow for better and faster tracking of the perpetrator.
Fraud prevention
The majority of fintech start-ups are focused on raising funds and enticing new customers without regard to the threat of fraud and other illegal activities online.
This makes new clients vulnerable to attacks making any of their online transactions unsafe. They can get hacked or tracked, forcing thousands or millions of dollars out of them.
The good thing with the current AI developments is it is possible to distinguish fraudulent activities through profiling of intrinsic behavior.
AI technology does this by tracking everything: the device, IP addresses, location, and the activities of the user. Through profiling, it will be easier to catch fraudulent activities once they have met the parameters or standards.
The AI system can track whether there is hesitancy in the typing patterns of legitimate users from fraud.
This innovation is improving and widening the doors of opportunity for the financial sector. By keeping it secure, it will be easier to raise funds and secure more customers to avail of their services.
Outsourcing AI: Harnessing AI applications
For financial organizations to stay relevant and competitive it is imperative for them to maximize modern technology. This entails the integration of modern applications to better improve customer experience.
AI is just one of the many technologies required. There are other tools and apps, such as blockchain, data analytics, and robotic automation.
The COVID-19 provided a good avenue for companies to fund and outsource AI projects. New business models powered by artificial intelligence allow them to elevate their brand.
The surge for outsourcing AI development is just in its early stages. As the world continues to experience transnational problems, innovative solutions will be produced, forcing enterprises to adopt automated operations.
In the case of fintech companies, outsourcing AI enables them to plan and forecast major disruptions to securitize the assets and well-being of their customers.
Bracing for more innovation in the Finance sector
Without a doubt, outsourcing AI solutions play an integral role in the new normal. Most of the services have gone online, which will continue as customers have become accustomed to it.
With the prevalence of AI, early adopters have a huge advantage in the competition. Companies need to be perceptive and quick to decide whether to adopt.
One thing is clear: new technologies enabled by AI provide more security and credibility to the public. They will more likely trust an organization with the latest technological applications than an outdated one.
