Big data is something that benefits more than just tech companies and research organizations. It also has implications and applications in financial inclusiveness. The collection and analysis of extensive amounts of information about consumers is something that can help foster financial inclusion as information is used by financial service providers to better assess the web of services they offer to individual customers. The importance of big data's impact on financial platforms can be demonstrated in what happens with microfinance on a global level.
– This article is only meant for discussion and healthy arguments, its not a conclusion by any means this is just an assumption and current picture focused on African & few other markets. Today payment industry can be compared with either payment war, payment jungle or even just payment storm. On the other hand how Mobile Financial Services have brought FinClusion (financial inclusion) to millions of people that have no access to traditional methods of banking. In many parts of Africa, there simply exists no bank infrastructure for people to be able to bank in the traditional way. Even where they do exist, people do not dare to enter into the big bank halls due to killing charges, KYC requirement equivalent to climbing the mount everest and time to travel miles to go or even time to stand in long queues or have the patience to go through the bank's processes. Where MFS providers in the name if FinClusion have done wonderful job by cutting all these barriers in one single shot. So the question here is "Will banks ever be successful in mobile financial services" with their hundred year old mind set and business rules.
Ernest Hemingway was known for his stories about a lost generation, bullfighting, and big game hunting, but one does not generally associate Hemingway with ideas of innovation and disruption. When a character in the novel is asked "How did you go bankrupt?" he replies, "Two ways, gradually, and then suddenly". How better to describe the process by which innovation and disruption can creep up on an industry or an organization, resulting in a sudden shift in the landscape. Leading financial services firms are facing unprecedented pressures, from technologically savvy customers, from hard-pressed regulators to Washington DC politicians of all political spectrums, and from aggressive new market entrants. This wave of financial services innovation and disruption possesses serious potential to unsettle perhaps the most traditional and central industry in our economy.
The financial services industry has been using artificial intelligence for decades in trading, and as the technology gets smarter it's being tested more often with payments as well. "There's an increasing trend around using AI around financial payments," said Sumeet Vermani, a global marketing leader working for fintech providers such as Red Box Recorders, a company that records communication, in the financial services industry for compliance. Financial institutions and payment providers are looking for ways to utilize AI in a number of areas, including customer interaction and fraud detection. The most popular application of AI in financial services -- and perhaps the most limited -- is the chatbot, a program that converses with customers through text or speech. In financial services, chatbots are usually used to make the first interaction with a customer, answering questions or directing customers to an area of the website.