The Rise of FinTech and Artificial Intelligence
A common concept in fiction is the eventual rise of the machines. For people who think that such science fiction is a precursor to science reality (and worry about this evolution) the rise of artificial intelligence in FinTech companies might be worrying. For those who see the technology as the improvement it is, however, the introduction of artificial intelligence is welcomed.
With over $15 billion invested in its development between 2010 and 2014, artificial intelligence is not an untested concept coming to the 2017 market. In fact, it is already dramatically changing application processes and customer service.
In many ways, artificial intelligence is the ideal partner for FinTech. FinTech came in as a way to fix the finance industry, introducing modern technology and shaking up an institutional hierarchy ruled by corporations who were content to maintain the status quo. Artificial intelligence is now set to make over the decision making process, making it easier for companies to determine risk and guard against fraud. Combined, they are set to change the world.
ZestFinance, for example, is using artificial intelligence to create a new technology platform that will improve the credit industry. For the millions of Americans who are unable to obtain credit (or are forced to borrow at punishing rates) because of the outdated process used by the big banks, this new system is a life-changing event. Through its Basix loan system, users can now quickly and easily apply for personal loans.
Artificial intelligence is also set to make a huge difference in the field of Insurtech. For one thing, it is changing how startups are offering their services, using technology to increase and improve the access clients have to their insurance agency.
Insurify is a great example of the way Insurtech is changing the business. After punching in a few details or sending an image of their license plate, users are quickly connected with a personal virtual insurance agent (a.k.a. Evia). These fully automated robot advisors are designed to find users the best protection to fit their needs, using an artificial intelligence algorithm to analyze data and build custom insurance models. Once users opt into a plan, the agents are set up to send out text notifications about rate reductions.
Artificial intelligence will prove to be a great tool that will dramatically improve the financial and insurance industries. This system will improve access for millions and protect people and companies from fraud. Don’t fear the rise of technology: embrace it and the many positive effects that will come from its presence in the business world.