How Fintech Uses AI For Better Customer Experience
FinTech companies are the pioneers in leveraging technology for providing better services to its customers. Artificial intelligence (AI) is one such technology that is utilized to enhance human connection at a machine level. Along with machine learning it can sieve through millions of data points on customer behaviour and analyse patterns to provide a comprehensive and precise insight which will help the companies achieve better customer satisfaction. This technology also has many other uses in the Fintech segment.
Role of AI in Fintech Companies
Chatbots as financial advisor
Chatbots are used by Fintech companies to save the time of the customer. Chatbots are called digital assistants that help customers navigate through different plans and schemes improving the overall experience of the user. In a P2P industry the chatbot can be used to explain the nitty gritties of P2P borrowing and lending to the customer before they interact with the first human contact.
Automated Risk analysis
Analysing and assigning a risk score or category is usually the primary task of all banks and financial institutes. Artificial Intelligence can successfully automate this process (through Artificial Neural Network, ANN) and analyse the risk profile of the user. Based on this risk profile the underwriting team can decide on a financial product suited for the user.
An AI model can speed up the underwriting process of banks, insurance companies and other NBFCs. Many a times the requests for personal loans can overwhelm the underwriting team and cause delay in document analysis and approval. Underwriting through AI reduces the time delay significantly.
AI algorithms make use of Natural Language Processing (NLP) to understand a user query (including balance enquires, account information, etc.) and display accurate results.
Claims automation & fraud detection
The claims process of an insurance company is usually lengthy and cumbersome if done manually. There are several permutations and combinations that have to be done before a claim is approved or rejected. AI can make use of advanced fraud detection and image recognition to bring down operational time for the organization, thereby improving user experience. It can entirely replace human interaction and provide a seamless interface for the user, and later use predictive modelling to detect anomalies in the claim. AI can then compute the range of payout which can be reviewed by the human team.
Legal documentation and agreement contract are tedious process in banking, insurance and NBFC firms. AI can make use of OCR (optical character recognition) and NLP to analyse and correct the contract document.
AI in P2P and trading companies study user behaviour and action, and uses sentiment analysis to help them make smart investment decisions and not be swayed by sentiments. It can also aid the wealth manager in making right investment decisions by providing detailed insights.
Any financial marketplace relies on exchange of information and by making use of AI Fintech companies can not only save time but ensure smooth delivery of services to its customers.