Four ways artificial intelligence is shaking up the finance world
From MetroMile’s pay-per-mile auto insurance business model to how SoFI is incorporating data science to revolutionize student loan refinancing, fintech startups are changing the way the finance world works. Using big data, deep learning, and most importantly, artificial intelligence, these services will change how consumers approach financial products. Advances in financial technology are enabling companies to streamline operations and offer bespoke services to everybody.
At the heart of AI is the ability to take many different data streams and interpret them to reach a beneficial outcome. This allows financial services companies to offer fully custom products and offers not just for their high net worth clients, but for everybody. For example, Stash offers plans such as “Small but Mighty” and “Roll with Buffet”, allowing customers to choose the financial plan that benefits their aspirations and beliefs.
Big data is daunting no more—AI takes raw data and helps collate, organize, and interpret it into actionable insights. More and more companies are using artificial intelligence to tackle the problem of data complexity even as the sum amount of information in the world doubles every year. AI helps connect threads, make sense of petabytes of market behavior, and help find direction in the vast ocean of data.
Smarter business decisions made easy
Similarly, AI helps businesses have a clearer understanding of their current circumstances, with enhanced situational awareness. This leads to greater agility, and helps business make smarter choices faster. Best practices are recorded and reproduced, providing a chain of experience and knowledge that helps companies make better-informed decisions. In Capital Markets, where knowledge of shares, bonds, and other long-term investments are all-important in buying and selling equity and debt instruments, AI’s role is set to increase exponentially.
Tactics vs strategy
Perhaps the greatest benefit artificial intelligence brings to financial technology—and all other fields—is how it automates so much data interpretation, helping companies deal with the day-to-day tactical decisions that use up so many resources. This helps human (non-artificial) intelligence devote more time to the non-linear business of long-term strategy, with AI serving as a guiding light to stay on course.