AI is now powering the future of fintech, bringing about many changes related to individual needs, security and making the industry more open to everyone. Based on what I’ve led earlier in Uber, Afterpay and Jarsy Rewards,Firsthand, I have experienced how AI is bringing new approaches to developing, expanding and offering financial services.
1. Personalization at Scale
With AI, fintech companies can use a lot of data to recommend the best products for each user immediately. By suggesting strategies for investment, supervising budget apps and noticing unusual expenditures, personalizing banking apps is progress compared to the old approach. Our use of AI at Jarsy allows us to learn about our users and guide them on how to use their money, whether they have no experience or are located anywhere.
2. Streamlining Onboarding and Compliance
Automated systems are simplifying the Know Your Customer (KYC) process. Using automated verification and recognition features, as well as scoring risks, eases the process and improves accuracy. As a result, people from around the globe and those without formal credit reports can easily use these services and platforms have simpler processes for complying with rules across the globe.
3. Strengthening Security with Behavioral Intelligence
An AI system can identify any strange actions by users as quickly as possible. Thanks to their continual development, these systems have less impact on fintech when threats try to interfere. The primary task is to ensure that it stays both safe and easy for people to use.
4. Driving Financial Inclusion
AI makes it possible to use different models for scoring credit that account for utility bills and shopping habits. In turn, underbanked people now get the help and services they previously did not even know existed. At Jarsy, we aim to ensure international users can invest in U.S. stocks easily, thanks in large part to AI.
5. Challenges and the Road Ahead
Yet, using AI in fintech may not be easy. Most people are worried about privacy issues, how AI is used, and how clearly it is defined. Improved cooperation among the stakeholders will be important as the process develops.
We can anticipate that during the next decade, fintech using AI will create personalized experiences, have hidden layers of security, and easily connect with traditional banks and new decentralized companies. For startups working in finance, AI can be used to create something fundamental, making finances more accessible, smart, and person-friendly for everyone.
Author Bio:
Chunyang Shen is the Co-Founder of Jarsy, a fintech marketplace that tokenizes private and public equities to make investing more accessible to retail and non-U.S. investors. Prior to Jarsy, Chunyang led technology and engineering teams at Silicon Valley unicorns Uber and Afterpay, where he helped build innovative financial products at scale.
