The rise of artificial intelligence and data science has radically changed the way everyone handles finances, including you. You’ve likely received money through your phone or used it to transfer money from your checking account to your savings account.
Financial technology, also known as Fintech, describes how technology is impacting all of the products and services the financial industry uses and offers to its customers today. Data science and artificial intelligence enable Fintech. By using huge amounts of data quickly and efficiently, DSAI has radically changed the way financial institutions operate and interact with their customers.
Fintech Is Everywhere
While financial institutions initially used fintech to make business decisions, this technology is now being used in virtually every facet of financial transactions. When you use an online wallet such as PayPal or Amazon Pay, you’re using Fintech.
Cane Bay Partners use data science to determine risk management and the most effective ways of investing to get the highest return on investment. DSAI along with machine learning helps make all kinds of financial decisions easier and freer from risk. It’s a more intelligent way of doing business.
Here are some of the ways DSAI is transforming the financial industry.
1. DSAI Helps Prevent Fraudulent Insurance Claims
With massive amounts of data now at their fingertips, insurance companies now use DSAI to check all claims to make sure they’re not fraudulent. Insurance companies can also check applicants’ credit scores and create individualized insurance packets.
2. DSAI Provides for Collaborative Filtering
Anytime you’ve filled out a user review, big data saves that information to make customized recommendations based on what you like. It’s known as collaborative filtering and it allows financial companies to provide you with a tailor-made offer to suit your needs and desires.
With such information at their fingertips, financial institutions can produce more effective marketing and make more sales. You get offers suited to your needs.
3. DSAI Means You Can Get a Loan Faster
Just a few years ago, you would submit an application for a loan and wait days or even weeks before you’d hear back from the bank. Today, lenders have instant access to your information and can easily determine what kind of lender you would be. If your credit rating is good, you can often get a loan instantly.
4. DSAI Eliminates Fraudulent Transactions
In the past, fraud could only be detected by people going through individual files and then flagging those files manually. As a result, fraudulent transactions could easily slip through. Now, with the help of DSAI, it’s much easier to find those faulty transactions. Not only does DSAI help detect fraud but it’s also be used to predict when fraud is about to happen.
5. DSAI Helps You Make Better Investments
Thanks to DSAI and Robo-Advisors you can make your own investments online without having to go through a stockbroker. Robo-Advisors ask a series of questions and then use complicated algorithms to come up with the best investment solutions for you.
Data science and artificial intelligence are enabling fintech to make banking and financial decisions easier and safer.