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Fintech and AI tools offer a powerful solution for almost any business problem. You can leverage the power of these apps and systems no matter your sector, industry, or niche without paying big bucks. Many come with tiered payment subscriptions that suit any business size.
They can seem a little intimidating at first, but once you integrate these tools into your business, you will wonder how you got along without them. There are also various systems for just about anything. From enhancing customer service to improved trading, here are some examples.
Sourcing Alternate Funding
Startups and established businesses alike are turning to powerful tools to assist with everything, including funding. There are many early-stage funding and liquidity challenges that new companies can face and one solution involves invoice factoring. Rather than waiting up to 90 days for payment, you can use AI tools to analyze the books and decide if it is better to sell outstanding accounts to access immediate capital and smooth out your business’ cash flow.
Fintech and AI Tools for Customer Service
One of the overlooked reasons for using AI-assisted tools is customer service. According to Zendesk, 73% of customers will switch to a competitor after a number of bad experiences. Fintech tools and AI systems can help manage customer relationships in a number of ways:
- Intelligent chatbots are available for customer queries and services 24/7.
- Chatbots can also assist with taking the workload from overstressed teams.
- Modern customers expect AI-assisted tools to be part of the overall experience.
Business doesn’t sleep and a 24 hour customer service bot ensures consumers always have access to the help they need. Workplace wellness is also a concern, and AI can reduce the stress placed on your employees, while giving customers the experience they come to expect.
Tailored Financial Advice
When you have a long list of customers, it can be hard to keep track of all of them and offer the best service possible. However, AI tools can assist with tailored customer service and even financial advice. The amount of data required to go over for a single customer is pretty large and takes a long time. Certain Fintech and AI apps can analyze data much faster than humans and offer insights, such as budgeting tips and trade advice, with reports from that data.
Analysis of Various Data Sets
Further to data analysis, some Fintech tools also come with AI systems that are capable of going through large volumes of data for even greater insights. An algorithm can analyze data sets such as quarterly financial data and even data from operational reports and highlight certain valuable information. This includes potential future trends, trading outcomes, and even risks. These insights are useful but would also be costly when contracted to a human.
Improved Fraud Detection
Business fraud is a common problem today. From employees to customers, there is the potential for fraud throughout every system and procedure within a modern company. AI algorithms in Fintech apps and other types of software work extremely quickly, much faster than a human. Because of this, they can detect fraudulent activities in real-time and alert the necessary departments. And yes, this includes potential cybersecurity risks and offenses.
Automating Fintech and AI Tools
Automation and AI go hand in hand. For analysis alone, AI tools are valuable. In fact, the Bank of England reports that 95% of UK insurance firms use AI to assist with data analysis. Because they are so helpful, Fintech and AI tools are set to play a critical role in the future of business technology and how companies manage finances, even if they use only automated tools.
Automating repetitive tasks
There are many tasks in finance and bookkeeping that are pretty boring and tedious. AI tools are excellent at processing these kinds of tasks and can even do it much faster than a human.
Less human error
Accuracy is critical when it comes to financial reports and data processing. One wrong number can cause severe issues. AI tools and Fintech apps help ensure accuracy is greatly improved.
Integration with existing systems
Integration is a highly versatile way of ensuring existing systems work together with others. In Fintech, apps like Coinbase can integrate into existing payment processes to store crypto.
Regulations and Compliance Processes
Alongside fraud detection, Fintech apps also typically come with tools that can help keep businesses compliant. False accounting and genuine mistakes can be a disaster for a business, highlighting the need for data quality. This also ties into data security, too. Of course, most sectors are heavily regulated and making mistakes can be expensive and potentially destroy company reputation. Using AI tools will assist with keeping accurate records and reports.
Error-Free Accounting
You could argue that a business only runs as well as its finances allow. Accounting in business is one of the greatest priorities, especially when you consider the penalties for poor bookkeeping. One of the greatest advantages of AI is that it can crunch numbers faster and efficiently, reducing the overall potential for human error. However, AI tools can get things wrong sometimes, so always ensure there is another set of eyes that can go over AI-generated data.
Sales, Marketing and Transactions
AI and Fintech apps are valuable assets for sales. With enough customer data, AI tools can analyze and identify the needs of an individual, offering insights into the products and services they would be more likely to buy. Further to this, AI tools can also offer personalization recommendations for a marketing campaign based on audience segmentation. These kinds of insights will help optimize the sales strategy and streamline the overall transaction process.
Fintech and AI Tools in Trading
A report by Global Trading found that at least 72% of professional traders use AI-based tools for their work. This has been one of the biggest shakeups of the financial sectors and the reason why Fintech apps are becoming more popular. Here are a few ways they can help a trader:
- Fintech apps such as Robinhood use predictive analytics to assist with trades.
- AI-powered apps, such as crowd-sourced funds, can learn crypto markets.
- Some of the best AI-powered Fintech apps can analyze millions of data points.
Predicting trades is notoriously challenging and requires a high degree of expertise, but still isn’t a guarantee. AI can assist with the data analysis this needs across volatile markets, including crypto. The sheer number of data points needed is impossible for a human, but a breeze for AI.
Enhanced Credit Scoring
Risky commitments to customers and clients can cost a business a lot of money. Of course, invoices can be offloaded, but that still means a loss of some revenue. However, Fintech apps can leverage AI power to quickly analyze credit scores and provide insights into a customer’s ability to pay. However, there are also other data points that can be scrutinized by AI to help with this, including credit history, historic payment behavior and even online or social media activity.
Summary
Sourcing alternate funding methods for access to immediate funds is just one use for Fintech and AI tools. Of course, one of the best uses for these kinds of tools is automating tedious tasks for faster processing, and AI can even assist with calculating a client’s ability to pay a business.
However, for all the fantastic benefits of AI and Fintech apps, there are some considerations. These apps rely on data quality to make informed decisions. They also require expert installation and integration to work effectively, and AI algorithms are also prone to bias.
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