India’s financial technology sector may be younger, but is developing hastily, serviced by a big marketplace base, an innovation oriented startup landscape, and friendly government guidelines and ordinances. Fintech market in India is likely to expand to $31 billion in 2020, Niti Aayog CEO Amitabh Kant said at an event organised by industry body Assocham, recently. He further said India is one of the fastest growing fintech markets globally and that the Indian fintech ecosystem is the third largest in the globe. $6 billion investments have already happened in fintech market in the country in the last 3-4 years. India is the only country in the world with over a billion mobile connections and biometrics, providing enough scope for penetration of fintech technology.
Also, the National Association of Software and Services Companies (NASSCOM) pronounced in 2019 that round 400 fintech companies operated in India, boosted in large part by means of overseas investments in fintech-focused startup accelerators and incubators.
With smartphone penetration anticipated to growth to 85 -90 percent in 2020 from 65- 75 percentage currently, and net penetration steadily rising, the boom potential for fintech in India cannot be overstated.
Fintech startups want to instill more self-assurance among Indian customers, already known for being conservative in their economic possibilities.
Technologies like AI in financial services is opening channel partner prospects, from building customer service chatbots to creating a better customer on boarding process.
Financial enterprises now work with more information than ever before. However, they often have trouble using that data for a competitive advantage. Enter AI and machine learning tools that automate data analysis. Here’s an overview of some currently prominent applications for AI in financial services.
Financial services companies need to protect valuable assets, so fraud detection is one area where AI use is common. In the customer service field, much of the early AI work focused on back-office procedures to provide clients easier access to their account information. But there’s a shift underway.
AI has begun having an impact on the front office. AI can help financial services firms get new customers in the system, as well as fill the sales funnel. Many financial services organizations are deploying chatbots, which have varying levels of sophistication. Automation through RPA can help Financial services firms save a lot of time of collecting information for auditing and compliance reports. Financial services employees continuously use information to make financial decisions wherein, AI and machine learning algorithms analyze data and make recommendations and increasingly decisions about such transactions.
But deploying AI in financial services is not easy. Building a data model entails the right mix of art and science. Therefore, an organization first needs to understand its own data integrity issues. Then with the help of AI or machine learning applications can do garbage in, garbage out.