Fintech: A Revolution in the Financial Sector
In our previous blog, we talked about how AI is playing a major role in both our societal and working lives. In today’s blog, we dig deeper into the role Artificial Intelligence plays in one aspect of the business world: Fintech. A combination of ‘financial’ and ‘technology’, Fintech is by large a technology incorporated in financial services for the purpose of providing solutions and simplifying the financial transactions that are unnecessarily made complicated.
When it first started, Fintech disrupted the banking and trading sectors, giving banks and large corporations less control over the day-to-day services. Today, Fintech is the mainstay of banking services. Banks that adopt financial technology allow their clients more financial access. One of the most vivid examples of Fintech is online banking. Today, you can check your balance, transfer money to a bank account in a different country, pay your utility bills and even book your flight using one app!
Artificial Intelligence is about machines smart enough to be able to think and act on their own without the help of humans. By the same token, Fintech is replacing humans in performing tasks, collecting the necessary data – a task machines excel in – and providing the service accordingly. An example of this is Robo-Advisors, a digital advice platform that uses the data it collects from clients through surveys to offer advice or invest the clients’ assets with limited or no human intervention. Compared to human investment advisors, Robo-Advisors are cost-effective, available 24/7 and most importantly, highly efficient.
For you to utilize Financial Technology, all you will need is your smart phone or laptop. The number of apps designed to provide solutions for personal and daily financial matters is increasing. With mobile payment solutions available nowadays, it is possible for you to go about your business using just your mobile.
Needless to say, the UAE has tapped into financial technology to keep up with the business revolutions taking place elsewhere. Even more, Fintech has witnessed cooperation from banks, governmental entities and financial services regulatory authorities to help accelerate the process and open the door for new players to enter the market. Just recently, the UAE has signed an agreement with Australia to provide support on Fintech businesses across the two countries. This alliance will help both countries exchange their experience in the field, giving the potential to many opportunities to grow and prosper.