Real-time AI is a game changer for fintech startups: Here's how

The artificial intelligence (AI) sector in India has seen incredible growth over the last few years and is projected to contribute a staggering USD 957 billion to India’s economy by 2035. More than 60 Indian startups are offering generative AI solutions and services to customers in various industries, totaling more than $590 million in funding to the space, with the most being injected in 2022. 

This rapid growth has resulted in a number of AI-use cases, particularly in fintech startups where the emergence of AI has revolutionized the customer-centricity through new solutions that are developed and deployed with accuracy and efficiency.

Real-time AI and Personalized Customer Experiences

The thirst for personalization, today, is higher than it has ever been. Real-time AI technology can be leveraged to deliver on these demands through analytics of customer behavior, preferences, and financial history data, so that companies can make informed decisions about how to best serve each user. 

Predictive analytics tailors product recommendations and customizes their platforms for an engaging user experience. Fintech startups differentiate themselves from traditional finance institutions, improving customer loyalty in the process.

Real-time AI and Enhanced Fraud Detection

AI-driven fraud detection and risk management solutions are more accurate than traditional risk management methods, which can be both time-consuming and costly. AI systems can detect anomalies in customer behavior and transactions quickly, allowing companies to respond quickly to any potential risks. 

By leveraging algorithms to identify behavioral patterns that would otherwise remain invisible to the human eye especially where high volume of data is in play, financial institutions can determine whether a transaction is legitimate or fraudulent with agility and speed. By combining advanced technologies with existing data security measures, fintech startups can better protect customers from identity theft and other forms of fraud, while improving customer experience.

Real-time AI, Automation, and Operational Efficiencies

AI can automate manual tasks and reduce operational costs for fintech startups. By utilizing AI-powered chatbots, customer inquiries, and issues can be handled quickly and smoothly without the need for human resources. This enables staff to focus on more strategic tasks, while also saving time and money. Additionally, AI can help streamline internal processes and workflows to increase efficiency levels throughout the organization.

Real-time AI, Portfolio Management, and Risk Assessment

Portfolio management is served by real-time AI. Through continual analysis of market data and trends, fintechs can make smarter decisions for their customers with greater accuracy. The insights generated by algorithms enable better risk assessment and allow fintech startups to create diversified portfolios that are tailored to the individual needs of their clients. 

Real-time AI - Compliance to AML and KYC

AI-powered tools can help revolutionize the way fintech startups manage regulatory compliance and reporting. By leveraging real-time AI, businesses can streamline their processes for monitoring transactions and ensuring adherence to anti-money laundering (AML) and know-your-customer (KYC) regulations. This is a major advantage that no business should overlook in today's ever-evolving landscape of financial regulation.

Real-time AI - Future of Fintech

Real-time AI is a powerful tool that can offer fintech startups a wide range of benefits. Through real-time AI integration, it is possible to deliver individualized customer experiences, realize operational cost savings, enhance investment decisions, automate various processes, simplify regulatory compliance, and reduce the risk of fraud. 

With its numerous advantages, real-time AI is an invaluable asset, capable of transforming the way fintech startups operate in the market. By embracing its potential now, fintech startups can reap the benefits in the long run, allowing them to remain competitive, strengthen their reputation, and drive sustainable growth.

The article has been written by Deb Dutta, General Manager for the Asia Pacific and Japan at DataStax