Here are four ways AI can convert FinTech

A comparison between AI and early internet is inevitable. So let’s not get in the way. We are approaching an age where AI-free apps seem as unthinkable as doing business without the internet. There is now a lot of talk about FinTech adding AI to enhance core functionality within consumer apps. In the future, this conversation will not take place as it will be considered natural that AI is under the hood.

Artificial intelligence is already here, in the neobanking app, Crypto Dapp, and in the digital portfolio. As mentioned in saying, it is not evenly distributed. Some advanced companies are moving forward with what can be called AI-fifigion for products and services, while others are lagging behind. What’s worse, rather than empowering users, we’ve added AI as a box-tic exercise. However, most fintechs are smarter than that and embrace AI for the right reasons. These are four of the best use cases to enhance.

Automating defi

If you have AI, then you have an AI agent. At least if it works on Web3, you are awakened to the possibility that that on-chine landscape will be brought about by an autonomous bot bidding for a master’s degree. Your average digital banking customer rarely au AU Fait with AI, let alone AI agents, but that’s another story of decentralized finance, whose users tend to be more tech-savvy, and that unauthorized money market is ideal for receiving agent treatment.

From a consumer perspective, these agents are seamlessly integrated into DAPPS, where they can handle tasks such as yield optimization and portfolio rebalancing. This all-enhanced infrastructure of AI activity comes from a specialized Web3 project that can provide the calculations and data that agents require. 0G Labs’ Layer 1 chains do a lot of heavy lifting here, providing the resources that DAPP scales infinitely, allowing AI agents to achieve their full potential. Soon, everything in Defi becomes an agent and the best thing is not to realize it is very smoothly integrated.

Fraud detection and security

As we have established, AI is excellent at automation. It is excellent at handling digital tasks that humans may not want to or do with minimal monitoring. This makes it ideally positioned for fraud detection. This requires 24-hour monitoring. Additionally, AI is clever with pattern recognition, and is extremely good at identifying abnormal behaviors, such as those who access apps and platforms in atypical ways.

In short, AI is excellent at protecting fintech applications, and this is one of the first areas implemented within the industry. From a consumer’s perspective, there are no many changes other than getting a “AI-protected” sticker somewhere. But behind the scenes, AI is wary of what could constitute unorthodox behavior. Also, identifying something unusual can be flagged for human operators to confirm, and AI can unilaterally lock the account or stop the transaction waiting for further investigation.

Personalized financial insights

Whether the person who knows you best after yourself is your spouse or kind, it is your internet browser. And quickly become half of your digital friends, doppelgangers, and others, and alert you to opportunities related to what you like and your interests. It’s already happening within the investment app. AI can analyze user data such as transaction history and spending patterns to provide tailored financial advice.

The app tried to provide this kind of service in the previous era, using user preferences and past behavior as a guide, but it was rather crude heuristic. AI is more up-to-date and allows for more detailed recommendations, generally provided according to your preferences. It’s your digital barista and essentially adds extra shots and a dash of cinnamon to sweeten your financial plans.

Credit Scoring

The concept of being denied credit because AI deems you unsuitable may sound dystopian, but it’s not really different to the already in place rule-based computer scoring. AI improves it simply by working with better accuracy and the latest data. One reason why AI can do a better job is that it allows you to analyze alternative data, such as social media activities and transaction history, to assess your creditworthiness.

Naturally, like all forms of AI, there must be a balance between granting access to rich datasets while protecting user privacy. No one wants to be denied a mortgage because of disposable social media posts made to teens. This is when AI has the potential to become a better judge than the rules-based system currently set up. This is because nuances and inferences can be applied when reaching that decision. Credit scoring isn’t going away anytime soon, so by ropeing with AI, you might accept the most fairest score possible by knowing who is right for the loan and who is responsible.

Customer Support

Yes, we’re talking about chatbots. That AI incarnation lives in your fintech app and offers to answer your support ticket. Chatbots can get bad reps because their first waves were inaccurate and, well, inhuman. But if there is one thing AI is good, it mimics humans, leading to a conversational tone that is even authentic and empathetic.

Pre-AAI chatbots may be insane to use. It’s illogical and cold. Often, it’s not just linking to useless support links that don’t address the issue. Bots with AI are more than just citizens. In reality, they can reach the root of the problem at a record time, and either directly solve it or escalate to someone who can. If you need to deal with customer support, AI chatbots beat automated phone services every day.

ai is everywhere

As we have established, AI is everywhere, but we can’t see it anywhere yet. Most of the apps that implement it are not a big deal about it. This is the right approach, as AI is not the solution. It’s a tool. In other words, AI alone won’t improve your digital life. But when it automatically optimizes your yields, locks hackers from your account, and handles your customer support queries with jiffy, it justifies its existence. With each use case and each app, AI is invading apps and platforms that you know and love. Like the internet itself, we are quickly approaching a time when life that never disappeared seems immeasurable. Everything welcomes our new ai overlords.