In this digital age, Artificial Intelligence (AI) is changing the way we interact with technology. From facial recognition to automated customer service bots, AI is revolutionising the world of finance. In this guide, we will discuss how AI has become a major player in FinTech IT solutions, and what it means for millennials in particular.
What is FinTech?
FinTech stands for financial technology. It refers to any technology used to help manage and improve activities related to financial services, such as banking, investments, insurance, and more. It can also refer to technologies such as mobile payments, online banking, and other digital payment options. As technology advances, so does the range of products and services offered by FinTech companies.
What is Artificial Intelligence?
Artificial intelligence (AI) is the ability of computer programs or machines to think and act like humans by learning from experience or data inputted into them. AI systems are capable of making decisions based on their own “thinking” rather than relying on human input alone. This technology has technically been around since the 1950s, but has advanced rapidly in recent years due to advancements in machine learning and big data analysis.
How is AI Changing the Fintech Industry?
- Automated Investing Platforms
Automated investing platforms use algorithms to create customised portfolios for their clients. These algorithms take into account factors such as risk tolerance, investment objectives, and time horizon in order to determine the best investments for each individual investor. While these platforms have been around since the late 2000s, they have become increasingly popular over the past few years due to their ability to offer personalised advice without requiring an advisor or financial planner.
- Robo-Advisors
Robo-advisors are digital investment platforms that use algorithms to manage your portfolio for you. They select investments based on what they believe will be most profitable for you and then monitor them on your behalf. This eliminates the need for expensive human advisors while still providing a personalised service tailored to your individual needs. Plus, many robo-advisors offer lower fees than traditional advisors, making them a great option for millennials just starting out in investing.
- Customer Service Chatbots
AI-powered chatbots are quickly becoming a staple of customer service in the FinTech industry. They can answer simple questions quickly and accurately without involving human agents – saving both time and money for companies looking to provide superior customer service experiences without breaking their budget. Plus, chatbots can be used 24/7 – meaning customers never have to wait long for answers no matter what time it is or where they are located.
The use of artificial intelligence (AI) in the FinTech industry has opened up a world of possibilities for millennials looking for ways to better manage their finances or invest smarter.
By leveraging emerging technologies like machine learning and big data analysis, FinTech companies have been able to develop products that provide personalised advice tailored for individual customers based on their risk tolerance level or long-term goals – something that was not possible before the advent of AI technology.
With new developments in the field happening all the time, we can expect even more innovative products from FinTech companies using artificial intelligence in years ahead!
