Top Benefits of AI App Development for Fintech and Banking Sector

Every sector offers something extra to customers in this digitally-driven world. Talking about the BFSI sector, it is necessary to transform the legacy working style into an online and rapid financial system to attract tech-savvy customers. 

Digital transformation in finance industry enables fintech startups and banks to offer advanced features and seamless access. Here, fintech app development comes into the picture. 

Fintech companies integrate technological advancements into the thriving finance sector to resolve issues related to human errors. But then, as technology evolves, fintech startups and other financial firms have to redefine themselves by embracing fintech software solutions. Reputed fintech app development companies can help them achieve this objective. 

These days, AI and ML technologies remain at the core of feature-rich fintech solutions. The combination of these futuristic technologies can benefit fintech startups and established enterprises alike. They can enhance efficiency and improve customer services with the help of advanced solutions. 

You may raise the question- how come AI can help the banking and fintech sectors? This post gives a detailed answer to this question. 

Major Benefits of Artificial Intelligence for Banks and Fintech Companies

Artificial Intelligence technology is useful for efficient marketing of schemes, personalized user experience, effective financial advice, and better services in the fintech sector. 

Original Source: Top Benefits of AI App Development for Fintech and Banking Sector

How Open Banking Brings Revolution in FinTech Sector?

What makes open banking a revolutionary change in the banking sector? An answer to this question lies in the total digitalization of the industry. Banking has remained a closed sector from time immemorial for exerting a monopoly on the majority of financial services. Today, the thriving fintech domain gives customers the right to choose an alternative. Thanks to the revised Payment Service Directive (PSD2) in Europe, all banks have to switch to the Open Banking model. 

Let’s understand why open banking is considered a revolution in the fintech sector and how a customized fintech app solution can leverage this concept. But, before moving forward, let’s go through the circumstances that lead to the wide adoption of open banking. 

It all started in the year 2018 when the EU countries got ready to incorporate the revised PSD2 into national law and force all banks to publish their APIs (Application Programming Interfaces). Simply put, it is the PSD2 directive that drives the future of open banking in the EU. It will open market barriers for European and other banks while changing the rules of the game completely.

Quick Facts

• 94% of FinTech enterprises consider that open banking can enhance current services
• 84% of financial service providers are investing in open banking products
• 77% of EU banks plan to invest in open banking for their commercial customers
• 77% of financial institutions agree that open banking will bring radical changes

It is fair to mention that the COVID-19 pandemic has boosted open banking and soon customers will get more customized and innovative products and services using the open banking concept. 

Original Source: How Open Banking Brings Revolution in FinTech Sector?