Data Recovery Digest

Innovations like machine learning and artificial intelligence are set to shape the future of many industries – including finance – in significant ways. According to recent reports, AI will save businesses in the banking industry more than $1 trillion by 2030 – and that's not all. From improving customer service to increasing competition, it seems AI is everywhere in the modern financial sector.

The rise of FinTech

Next-gen technologies like AI and machine learning have had such an enormous impact on the financial sector that they've given rise to a brand new division of it – known as FinTech – that focuses on finding new technologies and innovations meant to streamline the delivery of financial services.

In fact, FinTech experienced a record year for investments in the first half of 2018. The first half of the year alone saw nearly $42 billion in new investments – far outpacing 2017's total for the entire year. If similar numbers persist in 2019 and beyond, the FinTech industry could become the next big thing in IT.

There are several key innovations that are driving the success behind FinTech, including:

- Mobile computing: Consumers are using their smartphones and laptops more than ever before – and financial service providers are obliging them with mobile apps and software that are meant for banking-on-the-go.

- Digital banking: While many consumers enjoy mobile banking, they also want to access their accounts from the comfort (and safety) of their own home. Digital banking, including all-digital platforms like PayPal, are quickly gaining popularity amongst the mainstream.

- Blockchain technology: Cryptocurrencies like Bitcoin rely on blockchain technology for verification and authentication purposes, and many FinTech companies are already exploring alternative uses for blockchain technology.

- Machine learning: Machine learning makes it possible for computer systems and chatbots to actually learn new processes, mannerisms, and tasks over the course of time. This makes them even more useful in the field while also making them more lifelike.

- Artificial intelligence: Next-gen artificial intelligence is the cornerstone of FinTech. Companies use advanced AI algorithms and processes in many different ways, including as a guide to day-to-day operations, providing customer service, and planning future directives. Despite its relative infancy, it's hard to imagine the financial industry today without the integration of AI.

The use of FinTech has become so widespread that it even appears in some places that you'd never expect. Crowdfunding platforms like {{https://www.kickstarter.com|www.kickstarter.com}}, for example, wouldn't be possible without modern FinTech. Mobile payments wouldn't be possible without it, either, and it's even impacted the insurance industry as well as the U.S. stock market.

But FinTech really shines when applied to banking. Today's financial institutions use them to steer nearly every interaction – from new membership acceptance to ongoing account management, security, and more. Although you might be communicating with a human, there's a good chance that their moves and actions are being dictated by an AI-driven process – and its only becoming more common as AI continues to evolve and expand.