Particularly since the release of OpenAI‘s ChatGPT at the back-end of 2022, the world has sat up and taken notice of the potential of artificial intelligence (AI) to disrupt all industries in countless ways. To kick off 2024, The Fintech Times is exploring how the world of AI may continue to impact the fintech industry and beyond throughout the coming year.
Having already explored AI trend predictions for 2024, the evolution of generative AI and how much AI could impact the fintech and finance industry, we now turn our attention to individual fintech firms.
How should firms be utilising AI in the near future to both ensure the best results for their business and to not be left behind? To find out, we reached out to more industry experts to hear their opinions and suggestions.
‘Harnessing technology to augment financial services’
“In 2024, fintech companies should leverage AI to enhance customer experience and streamline financial processes,” suggests Gary Hemming, owner of ABC Finance, a property finance firm.
Hemming explains: “One impactful application lies in the realm of customer support. AI-powered chatbots and virtual assistants can be deployed to provide real-time, personalised assistance, addressing customer queries efficiently. By harnessing natural language processing and machine learning, fintechs can offer instant and accurate responses, contributing to a seamless and user-friendly experience. This not only improves customer satisfaction but also allows human resources to focus on more complex issues, ultimately optimising operational efficiency and fostering trust in the fintech’s services.
“The strategic integration of AI in customer support aligns with the broader goal of harnessing technology to augment financial services, making them more accessible, responsive, and tailored to individual needs.”
Protecting online and mobile banking platforms
Protecting sensitive data and banking platforms could also emerge as one of the most important uses of AI in the industry.
Andy Cease, director of product marketing at identity and security solution provider Entrust, explained: “One of the best practices for protecting online and mobile banking platforms in 2024 would be using AI to support and expedite the identity and biometric verification process to prevent fraudulent account opening from the outset.
“Digital transformation is not binary – we’re not certain how aggressively banks will adopt AI and biometrics, but it’s the most effective way to secure the experience further, but also simplify the experience. With bad actors becoming more nefarious, this process can be extended to authenticate high-value transactions, such as discharging a mortgage. This will help consumers to feel more secure in their digital transactions.”
AI in recruitment
As Ben Keighley, founder of Socially Recruited, AI will likely drastically change how people look and apply for jobs – meaning fintech firms will need to utilise AI themselves to identify the best candidates: “Artificial Intelligence will turbocharge both the way people look for jobs and the way recruiters and employers identify and reach the best candidates.
“On the jobseeker side, we’re likely to see candidates delegate more of the legwork of applying for roles to AI. Many are already using generative AI to research employers, draft cover letters and fine-tune their CV, but in 2024 more will be tempted to use tools like LazyApply to fire off scores, or even hundreds, of applications to advertised vacancies.
“For fintech employers this raises the prospect of a deluge of applications – many of which could be from completely unsuitable candidates, who will need to be verified much earlier in the recruitment process.
“That’s why forward-thinking employers will also need AI to stay ahead of the curve – by running highly targeted campaigns, driven by machine learning and using millions of data points, to reach the potential hires traditional recruiters might miss.
“In practical terms, this is likely to mean looking beyond the active applicants, and instead homing in on passive candidates; people who may not be scouring LinkedIn every day, but will engage with a perfectly pitched advert on their Facebook or TikTok feed.
“We will also enter the interactive phase of AI technology. Instead of just typing an instruction, you will be able to talk to your AI and set its tasks. For employers and recruiters, this will enable talent pools to be identified faster and more efficiently than ever before.”
Caution is advised
However, firms shouldn’t rush into using AI, and must ensure data sets do not contain inherent biases, or suffer the consequences, warns Muj Malik, CEO of iFAST Global Bank: “Many people value the personal relationships they have with their financial advisors and estate planners. AI lacks the emotional intelligence and empathy that is essential in financial and estate planning.
“For example, AI can give general advice but cannot yet be specifically tailored to suit individual circumstances. If the data sets used to train AI contain inherent biases, such as gender or racial biases, this could lead to biased advice being given to clients.”
Matt Smith, CEO of SteelEye, the integrated surveillance solution, also turns his attention to the risks presented by AI in the world of fintech. Smith said: “It’s undeniable that the use of AI has exploded across 2023, no less in the world of financial services.
“However, in the case of the compliance officer utilising this technology, you encounter many risks. If you rely on AI to do a human’s job, problems arise, with explainability being a significant one – something we expect to remain prevalent in 2024. This emphasises the need to view AI as a utility, a tool to help humans – something financial institutions cannot afford to confuse.
“Ultimately, the decision on a suspicious communications case must remain a human one.”
