Application of AI with Fintech in financial services sector

Abstract

During past several decades, amazing technology advance in Artificial Intelligence (AI), Big data and Machine Learning have been achieved and witnessed. AI plays a vital role in the digital transformation process of all sectors, especially within the domain of Finance. This paper reviews the application of AI with Fintech in financial services sector, analyzing how AI, Machine Learning, big data analytics and other Fintech techniques are being deployed to improve decision-making such as credit scoring, risk management, portfolio management and market prediction, improve efficiency and reduce costs while enhancing customer experience and engagement at the same time. The paper synthesizes recent advancements in AI’s application along with the evolution of Fintech in the financial sectors, summarizes AI techniques used, explore most common application areas of AI techniques, and discusses potential challenges AI brings to humans. It highlights how AI is reshaping the landscape of financial industry, and what academics, regulators, financial institutions, and Fintech companies need to do to leverage the benefits of AI while addressing the potential risk or problems it brings to the whole society and economy.