Annual worldwide AI revenue is projected to grow from $644 million in 2016 to $37 billion by 2025, with top use cases including algorithmic trading strategy performance improvement; static image recognition, classification, and tagging; efficient, scalable processing of patient data; predictive maintenance; content distribution on social media; and much more. Machine learning is extensively applied by financial institutions, and AI is becoming the most defining technology in banking. Furthermore, AI is expected to have a strong impact on the FinTech community.
With data being the primary force behind AI advancement, international corporations in the years ahead will be competing for the dominance in this segment. Meanwhile, the startup community will be a major beneficiary as tech giants are democratizing AI.
How AI Is Changing FinTech
Investment in FinTech organizations rose by approximately 10% to just over $23 billion in 2016 alone. Here are some ways in which AI is playing a major part in changing FinTech:
- Increasing security: Because AI helps by analyzing larger volumes of security data and is also able to scale to the size of a company as it grows, this technology can aid organizations in identifying: fraudulent behavior; suspicious transactions; potential future attacks.
- Reducing processing times
- Reducing duplicate expenses and human error
- Increasing levels of automation
- Offering game-changing insights
- Empowering smaller companies
- Balancing consumer budgets based on spending patterns
- Chatbots in financial services are: driving more seamless shopping; taking orders directly from social media channels; editing and checking bank account details; supervising consumer credit score; informing consumers of upcoming payments; and helping consumers to create realistic budgets.
Artificial Intelligence is Transforming Sales In Surprising Ways
- Too much of a salesperson’s daily activity is spent on tedious and monotonous tasks like cold calling, prospecting, responding to email, etc. Meanwhile, 40% of time spent on sales-related activities can be automated by adapting current technologies with AI.
- By embedding AI into CRM databases, salesforce automation software, help desk solutions, and other B2B apps, a lot of the crippling rote tasks still performed by salespeople can be eliminated.
- The effects include decreased cognitive load, increased job satisfaction, and stronger overall rapport and relationships across the sales organization.
- AI helps salespeople increase lead quantity as well as quality. Companies using AI for sales were able to increase leads by 50%.
- AI has the potential to transform salespeople into marketers’ most trusted advisors by doing the ‘heavy lifting and determining which leads represent the best targets for inbound and outbound marketing initiatives.
- AI enables salespeople to more effectively engage with customers. Prescriptive AI solutions deliver much more than predictive scores. They provide insight into why one prospect is more lucrative than another. This insight enables sales to create more personalized content, and engage in more targeted outreach.
Baidu and Xiaomi are working together on Internet-of-Things and artificial intelligence
- Baidu and Xiaomi have announced a strategic partnership to tackle two emerging technologies: IoT and AI.
- The two firms said will immediately explore opportunities in voice recognition, deep learning, and computer vision, in addition to more work with DuerOS.
- Further to that, Baidu’s tech reach also extends into robotics, AR, VR and self-driving cars, which could also be areas of joint cooperation in the future for Xiaomi.
- Baidu has favored a partnership based approach with hardware makers to get DuerOS and other technology into the hands of consumers. The company doesn’t charge a license fee for the OS – the same applies to this Xiaomi deal – and it claims to work with 130 companies that cover smartphones, smart TVs, smartwatches and home appliances.
Barclays is building a retail bank in the US
- Barclaycard in the US is building a digital bank and will rebrand itself as Barclays next year.
- The credit card issuer, a division of British bank Barclays, has been targeting prime and super-prime borrowers with an online personal loan it has been quietly offering on a test-and-learn basis to a small group of customers since last November. It plans to launch that offering publicly by the middle of 2018.
- This year, the company also began testing a personal financial management tool in its credit card app called My Personal Bank, which aggregates customers’ Barclays’ credit cards, personal loans and savings products – as well as accounts with other banks – into a single place.
- Barclaycard is morphing its business into a more complete suite of digital banking offerings at a time when FinTech startups and online banking products are starting to look more and more similar.
- Chase introduced Finn this year, an app for people who would rather skip the branches for completely mobile checking and savings accounts with personal finance tools; and Wells Fargo announced a similar offering called Greenhouse, a standalone mobile banking app with digital-only accounts and personal finance features.
- Barclaycard launched in the US in 2004 as one of the earliest digital-only banks, though it only offered savings accounts and CDs. Today, it’s the ninth largest US card issuer, with $26 billion in card loans and $12 billion in online deposits.
The Internet Has Altered the Meaning of Truth and Trust
"Tech companies will enter a new era of accountability. The idea that the likes of Uber, Facebook, and Amazon are immune to regulation, tax, and compliance, that they’re just these disruptive pathways that connect people and resources, I think those days are over. There will be a sweeping wave of regulation that looks at platforms’ responsibilities to reduce the risk of bad things happening and also, how they respond when things go wrong.
Some institutions will use this period of change an opportunity – proving to society that we need institutions, that they present norms and rules and systems, and they can be trustworthy." Rachel Botsman, a visiting lecturer at the University of Oxford’s Saïd Business School, and author of 'Who Can You Trust? How Technology Brought Us Together – and Why It Could Drive Us Apart'
*Featured image credit: Kickstarter.