AI and the future of Fintech
Pretty much everyone at this point has noticed the strides artificial intelligence has made in popularity of recent. It is quickly becoming relevant across the board all the way from self-driving vehicles like Teslas cars to the world of finance with Monzo and Tide.
Andrew Yang has been talking about the great replacement and AI being the next revolution. Jobs will be replaced left and right and we are already beginning to see this. One of the benefits of AI is that it increases efficiency to the next level. It allows companies to cut down their labour force as AI can do the jobs that took thousands of people hours in seconds.
This money can be spent elsewhere within the business or for ESG and impact style investments. It’s clear to see the negatives. Lost jobs and social division. However, there are also a lot of benefits, especially for business.
It can provide incredibly accurate market analysis allowing for business growth and pinpoint accurate investment. It allows business models to be incredibly lean. Market research with AI can take many forms, one such form is AI that scrapes twitter for market sentiment for certain segments. AI’s like this can also be used to make trades for you, with an impressively high success rate.
Furthermore, AI has become really useful for customer service in banks and for education through chatbots which allow individuals to resolve most issues within seconds of interacting with the bot rather than waiting hours for a phone call that may or not help.
AI is being used in finance for so many things. From trade bots who work out market trends through social media for investments to chatbots that greatly improve customer service for banks. It’s no wonder we are seeing massive institutional banks investing in Fintech and it’s not unlikely we are watching a massive evolution in the world of finance happen right now.