FinTech is the abbreviation bounced around for Financial Technology and refers to all innovative technology in both personal and commercial finance. Mix fintech with emerging tech’s favourite AI, and what do we have? Alarm bells ringing in the heads of those with more debt on the credit card than money in the bank.
Credit-worthiness has always been an issue for those of us who purchase with our hearts rather than our heads. The #treatyourself trend definitely treats you, and not the abused piece of plastic we put it on. After all, why not have today what we can pay for tomorrow?
Companies who offer credit or loans will soon be using AI to predict customers worthiness based on their past behaviour. The current AI technologies don’t often provide reasoning behind how they reach their decision, but it won’t be long before it improves and we’ll see a lot more of it than perhaps we’d desire. Looks like it’s time to drop the plastic and pick up a second job.
Fintech drifting into the AI world doesn’t just keep the tech-savvy, convenience-seeking millennials happy, it’s easing the mind of the fraud conscious too. Facial Recognition will help us keep our pennies safe by combating fraud. Users will soon be authenticated by who they are rather than what they know. It’s not only the borderline psychotic ex we can be sure will no longer access our online banking, but the many fraudsters who dedicate their time to steal our hard earned cash. The app will be using ‘liveness detection’ avoiding photos being used to unlock the barrier.
The future of savings has been served to us on a very easy, convenient and appreciated platter from the app world. The years of mums and dads keeping on to get their children to save rather than spend has come to an end. Companies like Plum and Chip have made trying to save simple, quick and inattentively, plus saving us all the earache from the family is appreciated. The idea is to connect to your bank account where the setup process is easy and a lot more appealing than the forms of setting up a savings account. Small amounts are automatically withdrawn to save without us consciously working out this months budget. By analysing your everyday transactions, the AI technology learns about your income and spending pattern and uses this knowledge to withdraw the right amount for you. Goodbye to the days of trying to save and finding it necessary to ‘dip in to your savings’ for tonight's dinner.
A creditor's dream and a spendthrift's nightmare? It only remains to be seen...