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How AI is Shaking Up the Finance World Posted on : Jul 12 - 2019

While artificial intelligence (AI) might sound like something out of science fiction movies or a Philip K. Dick Novel, it’s fast becoming a key feature of many of America’s biggest and most dynamic industries. The financial services industry, where small margins can mean millions of dollars, is unsurprisingly at the vanguard of this disruption. Over the past five years, the industry has been irrevocably changed by the rise of fintech – digital technologies used to enable new forms of financial activity.

How is AI used now?

Around the world, groundbreaking technology companies are increasingly incorporating AI and machine learning (ML) into their fintech tools. But how exactly is AI being used to make companies more efficient and importantly, more precise.

Credit applications

AI allows companies to quickly and accurately assess the creditworthiness of a potential borrower by cross-referencing the application against a wider variety of factors and information. Whereas traditional assessment heavily relies on a rigid set of criteria that fail to distinguish between genuinely high-risk individuals and those who are trustworthy but lack an extensive credit history, AI can provide an unbiased appraisal of an individual based on their demographic information, educational history, and employment prospects.

Loan-issuing apps and digital banks can even access smartphone data in order to evaluate loan eligibility and suggest specific terms based on a users’ spending habits. View More