AI Shaping the Future of FinTech
The success of financial revolution depends on growth factor and financial technology investment regardless of aspirations i.e., transaction facilitation, financial monitoring or stimulate financial behavioural shift through applications. We have heard ravings about FinTech as a new potential or would become major opportunity in the near future. FinTech could leverage financial service and transactional capacities such as payments, transfers, withdrawals, savings, insurances or risks management. A Pitchbook report indicated how FinTech attracted 17 billion USD of investment in 2016. China has an unprecedented level of investment value of 7.7 billion USD, much higher than 1.5 billion USD investment from the U.S.
Global FinTech and AI Integration
We begin to witness how banking institutions embraces FinTech businesses to maximize user benefits. One of the example is Studio B Project on Kensington Street, London, launched by Scotland traditional banking group called Clydesdale and Yorkshire Banks (CYBG). The venue serves as a branch and innovative banking and idea lab under the concept of connecting offline financial world and online together. Another objective was to demonstrate capacity of FinTech. After the launch of Digital Banking B Application in 2016, CYBG concretely leveraged its efforts into an idea lab within its branch and went beyond traditional Research and Development (R&D) into Testing and Development (T&D). Studio B is showcasing the Bank’s newest technology i.e., Amazon Alexa, intelligence stereo for voice command banking transactions. This project raises a new hope for digital banking that integrates innovation, users, staffs and general public in one place. This project also aims at building up on trial user feedbacks for further development.
AI adoption predominate the future of banking institution and FinTech as financial intelligence personal assistance. The AI system has integrated Deep Learning, which allows AI allows AI to forewarn potential global financial crisis as preventive measure. It could also send out alert when overdrawn amount made by retail customer exceeded the authorized overdraft limit.
FinTech companies are progressing forward with AI development to be more than just a chat bot. A Chat bot only capable of searching and answering basic bank information inquiries. The example of AI development is Cleo Application. This application offers financial management assistance, allowing user interaction via chat program and answering all type questions. It has a special feature that provide financial advice to account owner and analyze user income and expense. The application is also popular among young generation users and have appealing features such as emoji and motion picture.
Another solid evidence of FinTech and AI adoption is Digit application. This application allows users to connect their bank account with AI system to analyze their spending behaviour. The application will send user a message once every 3 days to spare some savings or transfer money into user’s saving account. The level of intelligence has been developed to the point where its can precisely calculate when to withhold transfers to saving account from future expenses prediction.
Thai FinTech User Design and Global Opportunity
The start-up company called FlowAccount.com become a news headline in Thailand on August 30th, 2017. This online accounting service provider had successfully raised Pre-Series A or seeding fund of 1.15 million USD from Thailand and Singapore venture capital companies. Their success is a great stepping stone for business expansion to offer creative facilitation for new startups and SMEs. Their service could enhance development of SMEs with modernized and efficient accounting management and increase competitiveness in the digital age.
Another similar example is the launch of OmiseGo, first E-Wallet Network on Blockchain system. E-Wallet Network transmits network data and allows digital currency exchange, i.e., loyalty points or game items. The purpose of this service is to provide financial services access to unbanked people. This financial service has more capability than domestic or international payment transfers. OmiseGo offers OMG Cryptocurrency to support financial service infrastructure development in South East Asia. The company has successfully raised fund by Initial Coin Offering (ICO) of OMG Cryptocurrency with the trading value of more than 25 million USD. This is also another leap forward worth seeing in FinTech businesses.
The above examples shown how FinTech business objectives lies with the benefit large population and it has been well recognized by both users and investors. Not only Thailand, but another region markets also seeking for financial spending alternatives to day-to-day financial management. FinTech has become a mechanism that helps millions of unbanked people to conveniently access fundamental and secured financial. Fintech could also eliminate limitation from lack of service access.