The Fintech Future: Accelerating the AI & ML Journey

Artificial intelligence (AI) has assumed a growing influence within financial services in recent years, affecting areas such as credit decisions, risk management, fraud detection, and stress testing. And for many fintechs, it has been baked into the process from the outset, to the extent that usage of AI in the fintech market registered $6 billion in 2019 and is expected to reach $22 billion by 2025. Economic fallout from the pandemic, however, has accelerated the timetable for financial services firms to become mass adopters of AI and harness its predictive powers sooner rather than later. For digitally native fintechs, many of which have already embraced AI and its capabilities, this offers the opportunity to invest further in the technology and capitalise on the tools available to accelerate their journeys. Fintechs across the world are dealing with the effects of Covid-19 and face an uphill challenge in containing the impact of it on the financial system and broader economy. With rising unemployment and stagnated economies, individuals and companies are struggling with debt, while the world in general is awash in credit risk.