AI in Fintech: Transforming finance with intelligence

Fintech industry has been quickly adopting Artificial Intelligence, from automating basic tasks to advanced operations like fraud detection, providing personalised customer service, and delivering strategic financial advice. The adoption of enhanced data analytics, machine learning algorithms and Generative AI has opened up new opportunities, fundamentally improving the operational dynamics of financial services. This article focuses on applications of AI within fintech, benefits, challenges and ways to overcome them.

Areas of applications

In trading

AI-driven algorithmic trading platforms analyse large datasets to predict market movements and optimise trading strategies. These platforms use historical and real-time market data, applying complex algorithms to identify profitable trading opportunities.

Machine learning models can detect patterns indicating potential market shifts, that enables traders to execute transactions at optimal times to maximise returns and minimise risks. Another way that ML being used in trading is sentiment analysis that involves data analysis of social media posts, news…