How AI-Powered FinTech App Development Boosts Customer Experience

Before years, banking and finance institutions used to make connections with their customers and personally support them with new investment ideas and schemes. But after the digital disruption, the personal interaction with customers has been lost. However, leveraging innovative technologies like AI and ML can help finance organizations bring back that personal connection and enhance customer satisfaction.

Human queries and problems can be effectively addressed and solved with the help of Artificial Intelligence as it offers a greater precision level and improves the query resolution extent. This indicates that the creation of FinTech apps with AI integration is incredibly helpful for the financial sector. Developers from the right custom FinTech app development company can help finance organizations build AI-driven apps and improve their business outcomes.

What is a FinTech Application?

FinTech (Finance and technology) apps refer to mobile or web solutions dealing with banking and financial services. FinTech apps are popular these days, as it offers better connectivity and enhances the efficiency and convenience of digital transactions. A large number of users are using smartphones and tablets to handle their finances and money transactions. FinTech apps can help them modernize these processes, obtain more, and acquire a better experience.

Why Integrate AI in FinTech Applications

Artificial Intelligence can benefit FinTech organizations in numerous ways. AI inclusion in FinTech solutions can give rise to advanced user engagement, well-organized workflows, secure payments, and eventually cost savings. Since the processes AI performs save time significantly, finance businesses and teams can focus more on other phases of a project. Hence it is not surprising that Artificial Intelligence integration ​​in the FinTech market is rising. As per the recent survey, Artificial Intelligence’s value in the FinTech industry will develop at a CAGR of 23.18% within 2026.

Moreover, FinTech development service providers are rapidly adopting Artificial Intelligence to reduce the number of challenges and provide a high level of customer support. As AI can streamline customer service to a greater extent through virtual assistants, chatbots, and other approaches, FinTech teams and professionals can spend less time on repetitive tasks and focus on more complex processes.

Use Cases of Artificial Intelligence in FinTech Applications

  • Predictive Analysis

AI is ideal for rapidly processing data in real-time. By integrating AI in FinTech apps, finance businesses can get access to predictive analytics functionality, which allows business users to forecast future outcomes using historical data. This is a beneficial feature included in many financial and budgeting assistant applications. Indeed, there are more profound uses of predictive analytics for FinTech businesses like enhancing cash flow management, forecasting demand and revenue, and estimating financial risks that help companies remain competitive in the modern market. Besides, predictive analytics is advantageous for the customer too. For example, users can get predictions on their income, investments, or expenses in the future through the FinTech app.

  • Facial Recognition

Financial data should be maintained securely to prevent fraudulent practices. That’s why AI-powered facial recognition functionality in FinTech apps is becoming more common. For validating the identification of consumers with anti-spoofing mechanisms, FinTech apps need advanced customer verification tools. AI-based facial recognition technology is one of the effective tools for eliminating digital fraud practices. By implementing advanced facial recognition security systems with the help of FinTech application development service providers, organizations can identify spoofing actions of fraudsters and hackers at the earliest and safeguard the user accounts. The facial recognition system using its 3D animation recognition functionality captures the shape of the app users’ faces with greater precision and allows secure authentication.

  • Optical Character Recognition(OCR) for KYC Onboarding

Using OCR in FinTech apps automates customer document verification like an identity card, passport, driver’s license, and others. The AI ​​can effectively extract the essential details like name, address, photo, and contact details and utilize that info for further validation. All these onboarding procedures can be done in a matter of minutes and customers can significantly save time. Also, simplifying the onboarding process makes it easier for fintech businesses to keep track of costs and lessen the manual effort required to do so. As the onboarding process becomes streamlined with OCR, businesses can reduce the additional costs associated with data entry processes.

  • Natural Language Processing (NLP) for Customer Assistance

One of the leading challenges that FinTech organizations largely encounter is financial assistance for customers. With the arrival of voice assistants like Amazon Alexa, Google Assistant, and Siri, it seems possible that Artificial Intelligence can offer financial advice and assistance to customers effectively. Many FinTech start-ups have already begun to deploy NLP-supported chatbots in their applications. This technology leverages AI to interact with customers like humans.

NLP chatbots can streamline the workflow and gather valuable user data or queries through these communications. Besides, these chatbots can also search over documents more effectively and offer appropriate information to users in a clear way. By taking complex documents and modifying them into a more understandable format, chatbots can help customers understand how to develop their financial behaviors.

Wrapping Up

Undeniably, AI helps in accelerating the growth of financial institutions. More than before, banking and financial institutions are adopting Artificial Intelligence to make their operations quicker and effectual. With AI-supported FinTech app development, financial organizations can increase the overall performance, and security of transactions, upgrade operations, and improve customer experience.

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