Artificial intelligence in the FinTech industry is a topic that has created a big layer of curiosity around itself. The progress it has made over the past few years has left everyone either talking the whole day about it or speechless with amazement. Today, let's talk about how the FinTech industry has obtained a whole new outlook throughout the world with the help of artificial intelligence and machine learning. Are you ready to be enlightened? The AI in FinTech market size is projected to grow to $31.71 billion in 2027 at a CAGR of 28.6%.

Internet fraud is a menace in our various financial institutes, and many fintech companies have been victims of this fraud game. Detection of these attacks comes in two ways: through inconsistent traditional methods or using ever-growing artificial intelligence mechanisms. Traditional methods, such as the rule-based method, are still widely used by most fintech companies in contrast to AI. At the same time, some are adjusting to leverage machine learning and artificial intelligence, improving ways to detect fraud. How have AI and machine learning improved fraud detection in the fintech industry?

SINGAPORE-HEADQUARTERED UNO Digital Bank and Trusting Social, an artificial intelligence (AI) fintech company, recently announced a strategic partnership to unlock credit access to Filipino consumers. By offering a frictionless and friendly lending experience, the partnership aims to empower traditionally underserved citizens and bring them into the formal financial ecosystem. The strategic partnership would leverage Trusting Social's expertise in AI-led customer onboarding solutions, including credit scoring. UNO's new digital banking platform could help build a more financially inclusive banking landscape in the Philippines. Manish Bhai, chief executive, UNO Digital Bank discussed with The Manila Times how the partnership with Trusting Social would allow unbanked Filipinos access to formal lending services. The Manila Times (TMT): Please describe the business of UNO Digital Bank and its presence in the Philippines (if any).

Instead of traditional and slow financial working style, tech-savvy customers want to get advanced and smooth access to online finance portals and apps. It has led banking firms to choose top finance software development companies to meet their customers' needs. Industries like Fintech are solving numerous human issues by merging finance and technology. But as the digital disruption takes hold, Fintech firms are finding this immense urge to redefine themselves. To achieve all of that, many Banks & Fintech startups and well-established companies are relying on artificial intelligence for stimulating their work capacity and serving their customers better.

Before we consider the five technologies that are set to transform Fintech, consider what Fintech is. Fintech is the synthesis of technology and finance and the harmonic combination of two of the largest industries into a single field. Naturally, its impact is enormous. Regarded as cutting-edge innovations a few years ago, now Fintech solutions are a daily reality. According to McKinsey, 80% of traditional financial institutions were exploring innovations in 2018.

The introduction of AI in all industries has had a significant impact on growth and development. AI in FinTech has also had a similar impact with enhanced security and banking apps, making the finance industry more customer friendly. Artificial intelligence (AI) significantly impacts practically every part of our daily life, from the office to the home, and the finance field is not far behind. AI in FinTech has various benefits. Hence, the sector is evolving into a new AI model.

There has been an explosion in the computational power of artificial intelligence. To much fanfare, Open AI, a startup that raised $1 billion from Microsoft MSFT, released Chat GPT, an interface to interact with their AI model. So this naturally felt like an opportunity to learn about the future of fintech - according to AI (particularly since we're at the end of the year, the customary moment for future looking predictions). Lazarow: Starting with the basics: what is fintech? Chat GPT: Fintech, short for financial technology, refers to the use of technology to improve and automate financial services.

After a banner year in 2020 and 2021, fintech companies and startups are now feeling the pressure of macroeconomic problems, as many organizations have seen their funding shrink and employee headcount decrease over the last few months. Challenging economic conditions, including skyrocketing inflation, aggressive monetary tightening by central banks, and a slowing economy, have led investors and venture capitalists to withdraw their excitement from the market, for now at least. Much like the once-booming tech sector, financial technology has seen its fair share of public and announced staff layoffs throughout the year. During the first half of the year, 4,189 fintech employees were laid off, representing around 11.2% of the more than 46,700 startup employees who were let go during this time. Fintech, which still managed to enjoy significant growth in 2022, has seen some pushback from portfolio founders and venture capitalists in recent months, as many are now encouraging startups and related establishments to prepare for the worst as a recession looms on the horizon.

A customer-centric approach, real-time data integration, cost optimization, and advanced security are those topmost needs of the present times financial sector which is emulating the business dynamics of FinTech companies. The word "FinTech' is synonymous with innovations, convenience, and high accessibility in the world of finance. Equipped with Artificial Intelligence (AI), the principal purpose of the majority FinTechs is financial inclusion – enabling the masses to get benefits from the mainstream financial system. With the advent of AI in the financial sector, hindrances and complexities that people used to experience in availing the financial services of banks and NBFCs do not exist today. Thanks to the new breed of tech-oriented financial institutions and AI technology that have empowered the masses with easy and cost-effective financial solutions.

Recent years have witnessed tremendous developments in the financial sector. Financial technology or FinTech, has been playing a critical role in providing next-level customer service to users via the usage of AI-powered Chatbots. Intended to assist customers with their requests in the most dynamic way possible, Chatbots today, also acts as a guiding channel that can help businesses better understand the needs of their customers. According to a Juniper Study, the usage of chatbots will end up saving banks up to $7.3 billion worldwide by 2023, which represents a time saving of 862 million hours, or almost half a million years of work. Some of the helpful applications include automated and personalised customer support, 24/7 access, ease of usage, cost savings, data collection information, audience segmentation, feedback collection, new account generation, and many more.