Finance is a sector of the economy that’s poised to benefit greatly from the adoption of AI, especially when it comes to Financial Technology or FinTech. Not only will AI revolutionize the ways in which individuals, investors and fund managers manage money, but AI will also revolutionize the ways in which consumers interact with financial institutions, make financial decisions and mitigate financial risks. The AI-powered financial market size was around $7.91 billion in 2020 and it’s estimated that it will reach close to $27 billion by 2026.
Research from Oracle shows that 87% of business leaders believe that they will fall behind their competitors if they don’t rethink their financial processes, and 85% of business leaders surveyed report that they want help from AI. These leaders realize that the sheer amount of data that AI can work with is unparalleled. AI can analyze standard market data in addition to non-standard data like social media posts and earnings calls to make market predictions, decisions and risk assessments on a much larger scale.
In addition to data analysis, AI can automate manual processes, deploy digital assistants, facilitate customer engagement and improve product offerings. According to Insider Intelligence, banks could enjoy an aggregate potential cost reduction of $447 billion by 2023 from AI applications. With numbers like that, it’s no wonder that 80% of banks are “highly aware” of AI’s benefits. Financial institutions are also highly aware of the risks associated with not adopting AI into their business models, which can include losing out to competitors, a higher stress level among workers, inaccurate reporting and reduced productivity.
According to CB Insights, Capital One, J.P. Morgan Chase and Royal Bank of Canada are leading the way when it comes to AI innovation in retail banking. The investments that these organizations have made in AI technology have gone way beyond virtual assistants and management tools to include acquiring AI startups, applying for AI patents, investing in internal research and development, and aggressively courting top talent in the AI field. AI initiatives at these banks include security and anti-fraud measures, loan approval, web payments, AI development tools, synthetic financial datasets, sports analytics, AI infrastructure, electronic trading and portfolio management.
If you’re looking to implement a seamless AI transformation in your FinTech organization, contact us. Mythos Group can help you identify areas where AI can increase efficiency, profit and growth. We welcome the opportunity to collaborate with you.
