How AI is transforming the future of fintech

In a recent turn of events, a certain hacker group wanted to show their power to the world and they decided to fake a tweet regarding an attack on white house. Using associated press account, they made the tweet viral, only to be announced as fake by AP few minutes later. However, within those few minutes, the impact on the market was more than hundred billion dollars. Of course, someone had informed AP regarding the disaster and that helped AP to resolve it. However, such an enormous and immediate impact on the world due to a mistake by the computer only amplifies the cynicism regarding AI.

However, AI experts point out that there are two basic differences between AI operated system and a human-computer interaction system with differences in risk profile, decision making and many more. Machines that employ neural networks work much better in detecting patterns, indicating significant points of financial change and predicting future behaviours. Phrases are like machine learning, deep learning are flying around for a reason as they are continuously transforming problem-solving models to become smarter. AI will surely be the most important concern in the financial world because of its sublime quality to take decisions based on humongous amount of data.

The aspirations of fintech

Fintech wants to do things faster, and learn deeper and create algorithms that will reshape what you understand by finance. While it was limited to the big players and their major breakthroughs, it is no longer so. Each and every single data point will now yield continuous stream of data which will be processed by AI to provide answers to the most innocuous questions. Forget understanding financial debacle and its causal relations with the market, AI can now tell you where you debit card was stolen and who hacked your card to steal some money from your account.

In short, fraud detection is taken to another level where your card is not the only security identification process. You can now use voice recognition, face recognition and even wearable technologies too to make sure that the AI detects you as you. So, even if someone has your card, the person cannot pull out a penny until he is doing plastic surgery or recording your voice. AI and biometric security go hand in hand in terms of innovation. This brings us to the question of digital money and how you should use more digital money instead of actual notes.

The changing idea of currency

More and more platforms for digital payment are coming up and it is hardly surprising because of the ease of usage. Your debit card can get lost, or any fraud can take care of it. However, mobile phones use secret patterns and often touch ID too so they are more secure as transactional points. However, it has another issue at work right now. While you search for the nearest restaurant, the company collects database for your location continuously and that can churn up unwanted information at times.

Retailers can thus have access to unseen information paradigm and hence, if they suddenly decide to use them for another purpose, then may well start knowing things you didn’t want them to know. You surely don’t want your hardware store to know that you are making a surprise room for your wife. Such a change can surely unsettle a lot of people. However, experts are calling for a more judicious use of AI and big data so that intense personal information does not become public through the intelligence of the computer. In short, trust AI, but don’t create a situation where you life depends on it.