Artificial Intelligence (AI) and Machine Learning (ML) are some of the most used technologies in fintech, offering the potential to play an even bigger role in the finance industry as developments continue. Some of the fintech applications of AI and ML include credit scoring, fraud detection, regulatory compliance, and wealth management, among others.
Data from customers and markets is of high value to fintech companies. Through large datasets, information about consumer preferences, spending habits, and investment behavior can be extracted and used to develop predictive analytics.
Predictive analytics refers to predicting how consumers are likely to behave using past information and a mathematical algorithm. The collected data also helps in formulating marketing strategies and fraud detection algorithms.
Robotic Process Automation (RPA) refers to the process of assigning manual, repetitive tasks to robotics instead of humans in order to streamline workflows in financial institutions.
The most widespread applications of RPA in finance are: