Leveraging AI in Fintech: Strategies for 2024

Since the unveiling of OpenAI’s ChatGPT in late 2022, the world has witnessed the transformative potential of artificial intelligence (AI) across various industries. As we step into 2024, The Fintech Times explores the continuing impact of AI on the fintech sector and beyond.

In our ongoing quest to forecast AI trends for 2024, delve into generative AI’s evolution, and assess AI’s potential impact on fintech and finance, we now shift our focus to individual fintech firms.

Gary Hemming, owner of ABC Finance, a property finance firm, advises fintech companies to embrace AI in 2024 to enhance customer experience and streamline financial processes. He suggests that AI can play a pivotal role in customer support by deploying AI-powered chatbots and virtual assistants to provide personalized assistance in real-time, efficiently addressing customer queries. This not only improves customer satisfaction but also allows human resources to concentrate on more intricate issues, thereby optimizing operational efficiency and fostering trust in fintech services.

Hemming underscores the broader objective of using AI to augment financial services, making them more accessible, responsive, and tailored to individual needs.

Andy Cease, director of product marketing at Entrust, emphasizes the importance of AI in safeguarding sensitive data and banking platforms. In 2024, using AI to expedite identity and biometric verification processes can be a significant best practice to thwart fraudulent account openings and secure digital transactions further. This approach not only enhances security but also simplifies the user experience, instilling greater confidence in consumers during their digital interactions.

Ben Keighley, founder of Socially Recruited, predicts a profound transformation in the job-seeking process and candidate selection due to AI’s influence. Jobseekers are likely to delegate more tasks to AI, such as researching employers, drafting cover letters, and optimizing resumes. This may lead to a surge in job applications, necessitating AI-driven tools for fintech employers to identify suitable candidates efficiently. AI can enable targeted campaigns, reaching potential hires beyond active applicants, ultimately accelerating talent identification.

While the potential of AI in fintech is vast, Muj Malik, CEO of iFAST Global Bank, cautions against rushing into its adoption. He highlights the importance of ensuring that AI’s training data does not contain inherent biases, as biased advice could inadvertently be offered to clients. Malik stresses that AI currently lacks the emotional intelligence and empathy essential in financial and estate planning, emphasizing the need for a balanced approach.

Matt Smith, CEO of SteelEye, an integrated surveillance solution, addresses the risks associated with AI in fintech. While AI has seen widespread use in financial services, especially compliance, Smith emphasizes the importance of viewing AI as a tool to aid humans, not replace them. He underscores the necessity of human judgment in making decisions on suspicious communications cases.

2024 promises to be a year of continued AI innovation in the fintech industry. Firms must harness AI’s potential to enhance customer experiences, fortify security measures, revolutionize recruitment processes, and promote efficiency. However, they must also exercise caution, ensuring that AI is used judiciously and free from biases, while recognizing its complementary role alongside human expertise.