Over the past few years, we have experienced significant developments in FinTech (financial technology). From innovations in digital currencies and mobile payment to blockchain and peer-to-peer lending, the tools offered by the development of FinTech have changed how consumers manage, track, and facilitate finances.
The digital space is evolving daily, and so is the FinTech industry. The impact of FinTech on artificial intelligence and legal technology is something to watch out for.
Fintech and Artificial Intelligence
Due to the abundance of data and the affordability of computing power, FinTech is adopting artificial intelligence. As a result, AI provides a wide range of benefits for the financial sector, including improved product quality, increased profits, and improved productivity.
FinTech deploys AI in finance streams such as customer service and cybersecurity. On the other hand, artificial intelligence is revolutionizing how online banking operates. As the demand for online payment and banking services increases, adopting artificial intelligence has become key to the growth and sustainability of FinTech.
Here are some ways Artificial intelligence and FinTech are expected to work together in the future:
- Stronger Security: Artificial intelligence has significantly improved data security services in the FinTech sector. For example, most FinTech companies provide customer support through AI-powered chatbots. In addition, artificial intelligence enhances financial security through finger, speech, and face recognition.
- Customized Banking Service: Banks and FinTechs have multiple customers. Keeping a tab on each client for personalized services can be complicated. Artificial intelligence banking applications will help banks collect customer data and streamline operations.
- Fraud Detection: From false insurance claims to loan application scams, financial fraud has significantly increased over the past few years. Artificial intelligence in finance and business uses machine learning to detect and combat cybersecurity and fraud.
FinTech and LegalTech
LegalTech is the application of technology in the legal sector. However, most people rarely think of the connection between LegalTech and Fintech. Perhaps this is because we perceive the legal space mainly deals with words while the financial sector deals with numbers.
When we talk about legal data, words can be treated as numbers. For example, despite its meaning, XML helps convert legal information into machine-readable data.
Some LegalTech solutions can be used in the financial industry. For example, the robotic process automation system, a concept very dear to the financial sector and FinTech, was first used in the legal industry. Robotic process automation is built on the assumption that all activities of a repetitive and routine nature can be effectively automated.
Document automation technologies, initially used in the legal sector to streamline and simplify the creation of contracts and other documents, are also used in the financial industry to draft large-scale banking agreements, orders, reports, and invoices.
Enroll in the Technological Innovation: Generating Economic Results (TI:GER) Program
TI:GER is committed to promoting innovation by getting graduate business, engineering, and law students to work on various startup projects. Are you looking to become part of this fantastic program? Contact us to discover more about how you can get started.