In 2024, artificial intelligence (AI) continues to drive transformative change in the fintech industry, revolutionizing processes, enhancing decision-making, and improving customer experiences. Here’s an introduction to 30+ compelling examples of AI in fintech for 2024, spanning areas such as fraud detection, customer service, investment management, and regulatory compliance. These examples highlight the diverse applications of AI in fintech, showcasing its potential to drive innovation, efficiency, and growth in the ever-evolving financial services landscape.
AI Companies in Financial Credit Decisions
The king is credited. According to one report, credit cards accounted for 27% of all payments made in 2020. However, customers value credit for reasons other than just making payments easier.
Obtaining attractive financing alternatives, getting employment, and renting flats are all made easier with strong credit. Because so many essentials of life are dependent on credit history, loan, and credit card approval procedures are crucial.
By utilizing a variety of indicators that more precisely evaluate historically underrepresented consumers in the credit decision-making process, artificial intelligence technologies assist banks and credit lenders in making wiser underwriting decisions.
These businesses assist the banking sector in reevaluating the underwriting procedure.
In order to deliver sophisticated financial analytics and credit evaluation, Enova incorporates AI and machine learning into its lending platform. The company’s goal is to assist small businesses and non-prime individuals in resolving practical issues such as emergency expenses and bank loans for small enterprises, while avoiding unmanageable situations for either the lender or the beneficiary.
Ocrolus
The place is New York, New York.
Ocrolus provides software for processing documents that blends human verification with machine learning. Businesses, organizations, and individuals may all analyze financial documents more quickly and accurately thanks to this program. In order to assess loan eligibility, Ocrolus’ software examines a variety of documents, including bank statements, pay stubs, tax returns, mortgage forms, invoices, and more. Its primary areas of focus are credit scoring, KYC, business and consumer lending, and mortgage lending.
DataRobot
Place: Massachusetts’s Boston
Data scientists, business analysts, software engineers, executives, and IT specialists can use DataRobot’s machine learning platform. Businesses and financial institutions may swiftly create precise prediction models with DataRobot’s assistance, which can be used to guide decisions on a variety of topics including lending, digital wealth management, direct marketing, blockchain, and fraudulent credit card transactions. DataRobot’s software helps alternative lending companies make more accurate underwriting judgments by identifying consumers who are more likely to default.
Scienaptic AI
The place is New York, New York.
A platform for credit underwriting that increases transparency and reduces losses for banks and other credit institutions is one of the financial services offered by Scienaptic AI. Its underwriting technology generates predictive intelligence for credit decisions using adaptive AI models, non-tradeline data, and records that are updated every three months.
Zest AI
Place: California’s Burbank
Zest AI is an AI-driven underwriting tool that assists businesses in evaluating borrowers that have minimal or no credit history. The technology makes use of hundreds of data points and offers transparency to assist lenders evaluate groups that are typically deemed to be “at risk” more accurately. According to the company, vehicle lenders that used machine learning underwriting decreased losses by more than 25% annually and more accurately projected risk.
underwrite.ai
Place: Massachusetts’s Boston
Underwrite.ai evaluates credit risk for applicants for consumer and small business loans by utilizing AI models to examine thousands of financial characteristics from credit bureau sources. The platform gathers portfolio data and uses machine learning to identify trends and predict application results.
Socure
The place is New York, New York.
To assist clients in meeting stringent KYC requirements, Socure developed the ID+ Platform, an identity verification system that analyzes an applicant’s online, offline, and social data using machine learning and artificial intelligence. To determine if an applicant’s information is being used lawfully, the system applies predictive data science to several types of information, including IP addresses, proxies, phone numbers, and email addresses. According to its website, organizations like Wells Fargo, Chime, and Capital One use Socure.
In the world of finance, time is money, but if risk is not managed properly, it may be fatal. For many firms, speed and security are paramount, and accurate forecasting is essential.
Machine learning is being used by the financial markets to develop more precise and agile models. These forecasts aid financial professionals in making better use of the data that is already available to identify risks, identify trends, save labor, and guarantee better knowledge for planning ahead.
These businesses are just a few instances of how artificial intelligence is being used in finance to help banks make better predictions and manage risk.
Workiva
Where: Ames, Iowa
A cloud application called Workiva is available to streamline data management and reporting processes for teams working in finance, risk, and ESG. It has generative AI built into it to help users with research, content revision, and document creation, all of which increase productivity. With more than a dozen branches worldwide, the organization serves clients in sectors like higher education, banking, and insurance.
Kensho Technologies
Place: Massachusetts’s Cambridge
S&P Global firm Kensho developed data analytics and machine learning training software that can evaluate hundreds of documents and datasets. Its data training program swiftly extracts insights from tables and documents and can answer complicated financial queries in an accessible manner by combining cloud computing, natural language processing, and machine learning. In the days after Brexit, traders who had access to Kensho’s AI-powered database were able to promptly forecast a prolonged decline in the value of the British pound, according to Forbes.
Derivative Path
Place: California’s Walnut Creek
The platform offered by Derivative Path assists financial institutions in managing their derivative portfolios. Sales opportunity tracking, configurable workflows, and automated tasks and procedures are all included in the company’s cloud-based platform, Derivative Edge. Additionally, some capabilities are specific to the portfolio; for instance, firms that use the platform for loan management can anticipate customizable dashboards, lender approvals, and lender reporting.
Simudyne
Location: Completely Seclusion
Financial institutions can do extensive market contagion tests and stress test analyses using Simudyne’s technology. The company provides environmental, social, and governance simulation tools in addition to risk management solutions. Using agent-based modeling, Simudyne’s safe simulation software offers a library of code for both specialized and commonly used operations.
Symphony AyasdiAI
Location: California’s Menlo Park
For fintech companies and organizations, Ayasdi develops cloud-based machine intelligence solutions that help them manage risk, anticipate client needs, and even support anti-money laundering procedures. To find and filter out false positives and spot fresh fraud activities, its Sensa AML and fraud detection software use continuous integration and deployment. It also analyzes data from other parties.
Range
Location: Virginia’s McLean
Millennials are the target demographic for membership-based fintech business Range’s money management services. It provides all the typical wealth management services you would expect, including retirement, investments, education, and estate planning, all through meetings with trained financial planners. It is a hybrid of the old and the modern. These services come with machine learning-powered do-it-yourself financial management capabilities.
Companies Using AI in Quantitative Trading
Using massive data sets to find trends that can be leveraged to place smart bets is known as quantitative trading. Particularly in this kind of business, artificial intelligence is helpful. Large, complicated data sets can be analyzed more quickly and effectively by AI-powered machines than by people. The resulting algorithms for trading automate tran
sactions and save a great deal of time.
A few instances of how AI-enabled technology is assisting financial institutions in making better transactions are the organizations listed below.
Trumid
The place is New York, New York.
A fintech and fixed-income trading platform is called Trumid. The business uses artificial intelligence (AI) and sophisticated analytics to provide tools and products that help enhance credit trading. Additionally, Trumid provides real-time pricing knowledge on over 20,000 corporate bonds denominated in USD through the usage of its in-house Fair Value Model Price, or FVMP. This AI-driven prediction engine is intended to assist in the delivery of data-driven trading decisions by rapidly analyzing and adapting to shifting market conditions.
Tegus
Place: Chicago, Illinois
Tegus is an investment research platform driven by AI and machine learning algorithms. By offering AI-generated summaries of expert interviews, the company assists clients in researching investment prospects more effectively and making well-informed investment decisions.
Canoe
The place is New York, New York.
Canoe guarantees the effective collection and extraction of data related to alternative investments, such as documentation on venture capital, art and antiques, hedge funds, and commodities. The company’s software classifies and verifies a customer’s alternative investment documentation using machine learning, natural language processing, and meta-data analysis.
Entera
The place is New York, New York.
Entera is a real estate investing platform driven by artificial intelligence. Through its SaaS and knowledgeable services, the platform enables investors to purchase, sell, and manage single-family homes. Both on- and off-market sources of homes are available to investors. Entera can also finalize agreements, match homes with an investor’s residence, and identify market trends.
AlphaSense
The place is New York, New York.
AlphaSense is an AI-powered search engine for the finance sector that provides services to Fortune 500 corporations, banks, and investment firms. To identify shifts and patterns in the financial markets, the platform analyzes keyword searches conducted across filings, transcripts, research, and news using natural language processing.
Many financial professions, groups, and businesses can benefit from AlphaSense; brokers can benefit most from it. Brokers and traders can obtain call transcripts, news announcements, information on private and public firms, and SEC and global filings by using the search engine.
Kavout Corporation
Where: Seattle, Washington
Kavout processes enormous amounts of unstructured data and finds real-time trends in financial markets using machine learning and quantitative analysis. An AI-powered stock ranker called the K Score is one of Kavout’s offerings. Massive volumes of data, including SEC filings and price trends, are analyzed by the K Score, which then distills the data into a stock’s numerical rank. The likelihood that the stock will beat the market increases with the K Score.
Alpaca
Location: California’s San Mateo
Alpaca supports its yield farming platform with high-speed data storage and unique deep-learning technologies. (Investors in cryptocurrencies that pool their money to execute interest-generating smart contracts are known as yield farmers.) Alpaca lets users lend assets to other investors in return for lending fees and protocol benefits. It is compatible with more than sixty coins.
Companies Using AI in Personalized Banking
Today’s consumers don’t necessarily find traditional banking to be satisfactory. According to a J.P. Morgan Chase survey from 2021, 89% of participants use mobile apps for banking. Furthermore, 41% of respondents stated they desired more individualized financial services and data.
Artificial intelligence (AI) assistants, like chatbots, employ natural language processing to deliver immediate, self-help customer support and AI to provide customized financial advice.
Here are some instances of businesses that are utilizing AI to gather data from clients and improve the banking experience.
SoFi
Where: San Francisco, California
SoFi provides small businesses and people with internet banking services. It provides credit score insights, student loan refinancing, small business loans, and checking and savings accounts. The business uses AI in a variety of ways. For instance, SoFi customers can benefit from the company’s intelligent virtual assistant’s round-the-clock assistance.
Kasisto
The place is New York, New York.
KAI, a conversational AI platform designed to enhance client experiences in the finance sector, is made by Kasisto. By giving consumers self-service choices and solutions, KAI assists banks in lowering the amount of calls handled by call centers. The AI-driven chatbots also assist users with other everyday financial decisions and provide them with well-considered recommendations.
Abe.ai
Where: Orlando, Florida
In order to give users more comfortable banking, Abe AI is a virtual financial assistant that connects with Google Home, SMS, Facebook, Amazon’s Alexa, online, and mobile. The assistant helps with everything from basic help and information inquiries to managing personal finances, budgeting, and spending summaries. Abe launched its intelligent financial chatbot on Slack in 2016. Users of the software can track their expenses, set savings goals, and create budgets.
Trim
Where: San Francisco, California
Trim is a financial advisor that links to user accounts and performs expenditure analysis. The intelligent app has the ability to negotiate bills, identify better solutions for services like insurance, and cancel subscriptions that are a waste of money. Trim has helped its consumers save over $20 million, according to a 2021 Finance Buzz report.
Businesses Using AI for Banking Fraud Detection and Cybersecurity
Large volumes of digital transactions occur daily when people transfer money, settle bills, deposit checks, and trade stocks online. Any bank or financial institution must now increase its efforts in cybersecurity and fraud detection, and artificial intelligence is crucial to enhancing the security of online banking.
These are a few instances of businesses that offer big financial institutions AI-based cybersecurity solutions.
Vectra AI
Where: San Jose, California
With the help of artificial intelligence (AI), Vectra provides a cyber-threat detection platform that automates threat detection, uncovers unseen attackers who target financial institutions in particular, speeds up event investigation, and even finds compromised data.
An overview of Vectra’s efforts to assist a well-known healthcare organization in preventing security breaches may be found in a case study. The assault was stopped by Vectra’s platform after it saw activity that suggested an attacker was searching the footprint for vulnerabilities.
Jumio
Location: California’s Palo Alto
The KYX platform from Jumio assists companies in building trust with their online clientele. The software uses face recognition to verify the identification of consumers, checks them to make sure they follow financial standards and continuously evaluates risk. Furthermore, the platform monitors transactions and uses biometric authentication to analyze the identification of current consumers. Jumio is frequently utilized in the retail, gaming, healthcare, and education sectors.
F5
Where: Mountain View, California
Top US institutions use f5, which offers security solutions to help financial services mitigate a range of threats. The company provides solutions for open banking, GRC, fraud management, digital transformation, and data security.
An analysis of one bank’s use of its technologies to improve security and resilience while reducing significant cybersecurity threats can be found in an f5 case study. Additionally, the company’s apps reduced TCO and future-proofed its application architecture while accelerating private clouds, securing vital data at scale, and increasing automation.
Darktrace
Where: San Francisco, California
The AI and machine learning technology from Darktrace examines network data and generates probability-based computations to identify suspicious activity before it affects some of the biggest financial institutions in the world.
A case study claims that Bank One used Darktrace’s Antigena Email solution to thwart malware and impersonation attempts. Email attacks quickly decreased for the bank, and it has subsequently implemented more Darktrace technologies throughout its operations.
FIS
Where: Jacksonville, Florida
Numerous banking and financial solutions are offered by FIS. A compliance hub that employs C3 AI to support capital markets companies in their battle against financial crime is one way it makes use of AI. The machine learning-based technology, which was unveiled in 2021, improves AML and KYC procedures by combining and analyzing client data from several platforms. Additionally, FIS offers FIS Credit Intelligence, a credit analysis tool that digitizes financial records using C3 AI and machine learning technology and provides near-real-time compliance data and deal-specific details.
Blockchain and AI are utilized in almost every industry, but they complement one another particularly effectively. Financial transparency and security can be improved by combining blockchain’s digital recording capabilities with AI’s quick and thorough data reading and correlation skills. AI models running on a blockchain can be used to settle disputes, carry out stock exchanges or payments, and arrange enormous databases.
Here are several instances of businesses that manage cryptocurrency, raise money, and more by utilizing blockchain and AI.
TQ Tezos
The place is New York, New York.
TQ Tezos uses blockchain technology to develop new applications on the Tezos blockchain. The company collaborates with international partners to introduce publically accessible organizations and software. TQ Tezos wants to make sure businesses get the resources necessary to realize their ideas in a variety of sectors, including finance and healthcare.
Wealt
hBlock
Place: Chicago, Illinois
Wealthy Block.AI is a SaaS application that makes locating investors easier. It assists companies in raising funding, manages automated marketing and messaging, and verifies investor appropriateness and referrals using blockchain technology. Furthermore, throughout the process, Wealthblock’s AI automates content and maintains investor engagement.
ShapeShift
Where: Denver, Colorado
More than 750 cryptocurrencies are supported by Shapeshift, a decentralized digital wallet and marketplace. Users of the platform have access to eight distinct wallet types and nine distinct blockchains. The FOX Token is a new cryptocurrency that ShapeShift has also introduced. It offers customers multiple variable incentives.
Figure
Where: San Francisco, California
Figure automates the house loan application process with blockchain and AI. Its technology discovers new avenues of entry for consumer credit products, including retirement home buy-lease options, home repair loans, and home equity lines of credit. Figure Marketplace is a blockchain-based platform that facilitates capital raising, equity management, and share trading for investors, entrepreneurs, and private enterprises.
