Today, you can send money to someone within seconds, thanks to digital payment services. All you need to do is take out your smartphone and use your mobile banking app. Well, payment is just one area where automation of financial services has been accomplished. We now have the entire Fintech industry, the financial technology industry, that aims to deliver more efficient and accessible financial services through the use of websites, mobile apps, and other digital platforms to reach customers. The advancements in technology have led to significant growth in the fintech industry in recent years. This growth is in line with the changing consumer preferences and increasing demand for more efficient financial services. No wonder the global fintech investment reached over $100 billion in 2021 and is expected to increase further over the coming years.
One of the prominent technologies driving the growth of the fintech industry is machine learning. You must already know that machine learning is an important aspect of Artificial intelligence and powers some of the most sophisticated devices we see these days – driverless cars, voice assistants, chatbots, drones, and more. Almost every business vertical is reaping the benefits of implementing AI and machine learning into their processes. So, why should fintech be left behind? This article will let you know how machine learning is being leveraged in the fintech industry to offer smart and innovative solutions. You will also understand how taking an online AI Bootcamp will help you dive into this technology better.
<iframe width=”560″ height=”315″ src=”https://www.youtube.com/embed/HKcO3-6TYr0″ title=”YouTube video player” frameborder=”0″ allow=”accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share” allowfullscreen></iframe>
Applications of Machine Learning in the Fintech Industry
Machine learning basically aims to build computer systems that can perform human-like tasks and improve over time without being explicitly programmed. ML models are fed with large amounts of input data and trained to produce the desired outcome. Accurate prediction is what is expected from an effective ML model. By using various algorithms and analytics, machine learning can solve the business problems associated with the fintech industry.
So far, we have seen the applications of AI and machine learning in these areas related to the financial sector – sales forecast, service personalization, risk management, customer support, fraud analysis, stock price prediction, product recommendation, and more.
One of the major benefits that machine learning offers to the fintech industry is predictive analytics, specifically in areas like decision-making and credit scoring. Banking institutions and other fintech companies can promote better money circulation by approving loans regulated by ML-powered credit scoring systems rather than using the traditional rule-based system.
Machine learning also allows fintech companies to offer a more tailored and convenient experience for customers, thereby gaining increased customer loyalty and satisfaction. This can be done by using algorithms and data analysis to better understand and predict individual customer needs and preferences to promote personalization. Machine learning can help analyze a customer’s transaction history, spending patterns, and other data so as to create personalized financial solutions. You must have already witnessed how banks give you notifications regarding investment advice and portfolio recommendations. It seems personalized because they have used machine learning to analyze your investment history.
A key concern in the fintech industry is the risk of fraud and the security of data. Here, machine learning can act as a powerful tool that can analyze large volumes of transactional data using advanced algorithms and identify patterns and anomalies that may indicate fraudulent activity. Many financial institutions want to develop an ML model that can learn from historical data and automatically flag potentially fraudulent transactions in real time, thereby reducing the risk of financial loss to both the customers and the organization.
Fintech companies often face repeated queries from customers, and sales representatives have to deal with them every day. This even leads to poor productivity. So, here comes the ML-powered solution named chatbots. The idea of designing chatbots is to answer common customer queries directly without the involvement of a human. Banks and financial institutions have witnessed impressive results by adopting chatbots, including reduced costs and increased customer satisfaction. The best part is chatbots can remain functional round the clock and is able to offer solutions to customers even during odd hours.
How Do I Learn More About Machine Learning?
Well, looking at the interesting applications of machine learning in the fintech industry, you must be more curious about this technology now. AI and machine learning have, indeed, brought about significant changes in the way we interact with the digital world, and it makes sense to learn more about them. In fact, gaining the right AI and ML skills can help you future-proof your career and establish a high-paying career in the long run.
All you need to do is identify a reputed training provider that offers high-quality AI and ML Bootcamp online. By enrolling in such a training program, you will be able to explore the basics of AI and ML and understand how they are applied in various industries to resolve business problems and offer innovative solutions. Some of the well-known online training providers are Coursera, Simplilearn, Cognitive Class, Udacity, and Udemy. Check out the ML Bootcamps offered by them and pick the one that best matches your unique learning needs.