Nick Holt AI will transform financial services in 2024 . For fintech platforms , the immediate function of AI will be to help reduce fraud , including the fraudulent creation of new accounts . By training advanced machine learning models on a comprehensive dataset , AI systems can identify anomalies in data from device information and thirdparty checks to determine unusual patterns , and then investigate the context by analysing sequential data to determine if fraudulent activity is taking place .

Gen AI is likely to act as a co-pilot for security professionals , automatically flagging inconsistencies and interfering to potentially stop crimes from being committed . This reduces the need for lengthy manual checks and , critically , makes fintech platforms safer .

The second application of AI for fintech platforms is likely to be challenging the way traditional legacy banks assign credit . AI can revolutionise the concept of credit underwriting by instantly analysing reams of data and determining more about an applicant ’ s credit request than has previously been possible , simply by looking at a pre-assigned credit score linked to an individual and primarily based on historical , financial data .

This opens the door for more equitable credit scoring as data outside a set credit score can be taken into account ( e . g . recurring payments , work history );

credit decisions can go from being based on a particular person to being about a specific transaction .

Babs Ogundeyi We ’ ll see a lot more fintechs implementing Gen AI and other applications of AI . The rapidly advancing technology has the potential to impact the majority of industries , and fintech should embrace its capabilities . Using Gen AI can free up people ’ s time to

130 March 2024