Artificial intelligence has left no industry affected through its next-gen abilities. With AI, companies and businesses can do remarkable things that didn’t seem possible a few years ago.
Especially fintech app development industry is gaining a lot of advantages through AI. In fact, artificial intelligence has started a new phase of evolution in the development of fintech apps.
According to a Deloitte survey report, financial institutions which have integrated AI in their fintech applications have witnessed 19% growth in their revenue figure. Fintech startups are heavily investing in fintech application development and looking for advanced fintech solutions with AI.
So how is AI disrupting fintech app development? In this blog, we will highlight this growing trend.
What is Fintech App Development?
Fintech app development is to create mobile apps for online banking and financial services. It is the creation of fintech apps that consists of features for allowing users to get services and solutions related to digital banking and other financial things. A fintech app development company holds dedicated expertise in building fintech apps.
Rise of AI Usage in the Fintech Sector
Artificial intelligence is a powerful technology. It empowers a system or application with automated capabilities. Developers use AI in fintech app development to create a variety of automated functions in the app for multiple purposes. However, financial companies and fintech app development companies use AI for high-end operations.
For instance, handling large-size data, enabling automation and smart data analytics algorithms for providing better financial services to users’ smartphones and mobile devices. By implementing artificial intelligence in fintech mobile apps many financial companies have witnessed dramatic improvements in their business growth.
And this massive adoption of AI in the fintech sector has led to increasing the demand for effective and smart fintech app development solutions. As per a market study, 63% of global customers use one or even more fintech applications. 85% of financial companies are interested in adopting AT in their fintech ecosystem.
One of the popular examples of this is Kabbage, a US-based company that is now owned by American Express. This company launched an AI-based lending mobile app for providing loans to small businesses.
Interestingly, this fintech app received around $2.5 Billion in funding due to its rapid disruption in the market. The app owners indicated the AI’s distinctive capability to help people receive lending services more efficiently and smoothly. Hence, it clearly shows the significant rise of AI in fintech apps.
How AI is Disrupting Fintech App Development?
As we have seen how drastically AI is being implemented in the fintech sector due to its advanced abilities. Let us see how AI is impacting the development of fintech applications.
1. Robust Security
AI is used to create high-end security features in fintech apps. artificial intelligence allows fintech app developers to build robust security protocols and algorithms for protecting user data and payment processing.
From biometric login to strong end-to-end data encryption, AI provides great support for making fintech apps fully secure from all kinds of potential vulnerabilities. As people are using fintech apps for accessing and using digital banking and financial services, AI plays a major role in developing secured fintech mobile apps.
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2. Fraud Detection
AI helps financial companies and banks in fraud detection and preventing false or malicious activities from taking place. With AI, fintech app development companies create intelligent fraud-detecting features to stop counterfeit and false activities.
In the age of cybercrime, there are various forms of online fraud happening especially in the financial and banking fields. For example, false insurance claims, fraudulent wire transfers, fake loan applications, malicious financial activity, and so on. To keep the fintech app safe from these fraudulent activities, AI enables developers to build robust fraud detection features.
3. Personalized Banking Services
With AI, providing personalized banking services is quite easy and seamless. AI has the NLP capability to analyze human voice and speech. This allows AI-powered applications to distinguish real patterns and create the required outcome.
For instance, some developers implement AI in fintech to predict the mood of customers by analyzing their activities and interests. Besides this, AI enables the app to collect and analyze customer information. This helps companies gain reliable customer insights and make better business decisions.
4. Improved Decision Making for Stock Trading
Investing in stocks requires good experience and industry knowledge. At present, there is a great need for intelligent and reliable solutions for helping people make better decisions in investment and stock trading. For this, there are many fintech apps that assist people in making the right decisions for trading.
But with AI-powered fintech apps, people are able to make more accurate decisions and achieve better results. AI empowers fintech applications with next-gen algorithm trading ability and reduces risks with well-informed decision-making.
Moreover, AI-based fintech mobile apps are able to accurately analyze financial data and detect trading trends and patterns. This helps investors gain possible insights for making future predictions.
5. Cost-efficient and Affordable Financial Services
By integrating artificial intelligence in Fintech Applications, they help business owners save huge cost and resources. AI brings automation capabilities to fintech apps which reduces the involvement of manual operations.
As a result, it reduces the cost associated with various financial operations. Many financial companies use AI and ML for creating data-driven algorithms for improving capital optimization and better managing the flow of payments.
By using AI many banks have also streamlined and made their banking operations more cost-efficient and affordable for their customers. Government agencies use AI-driven applications for anti-money laundering. As a result, it reduces the need for human resources and saves costs.
6. Enhanced UX
AI helps fintech companies provide enhanced user experience. By using AI-powered Chatbots in fintech apps, companies are able to assist their customers round-the-clock. As a result, it enables companies to provide enhanced customer service.
Besides this, AI also allows developers to create intelligent functionalities which improve app performance. Hence, with these improved features, AI-powered fintech apps give an enhanced user experience. And this ultimately results in a high conversion rate and long-term user retention.
Final Thoughts
AI is undoubtedly a powerful technology that provides immense benefits to the fintech sector. With AI, developers get the ability to create effective and high-end fintech app development solutions. Whether it is banking or any other financial service, AI-powered fintech apps offer advanced-level benefits that help financial service providers gain improved business outcomes.
But to ensure you get the best-performing fintech apps, you should find a reliable company that provides state-of-the-art fintech app development services. This will help you efficiently build an AI-powered fintech application for your custom business requirements.
About The Author
The author is a Senior Business Analyst at MobileCoderz-a globally-renowned fintech app development company which provides the industry’s best-in-class fintech solutions to startups and businesses. She has been providing professional consultation on mobile app development for various industry verticals. Especially in fintech, She has assisted many fintech startups in ideation and strategizing their fintech ventures. Besides this, She is an avid sci-fi novel reader and likes to discover new tech trends.
