This month, The Fintech Times presents a comprehensive feature on the emerging trend of embedded finance, which involves the seamless integration of financial services into non-financial products and services, thereby enhancing accessibility and convenience for consumers. As the embedded finance space continues to evolve, it is imperative to highlight the latest developments, initiatives, and challenges on a global scale.
Artificial Intelligence (AI) has been a dominant and pervasive subject within the fintech industry in recent years. Its influence extends across various sub-sectors, and this article will explore the impact of AI on the embedded finance space as part of our thematic focus for the month of April.
Mikhail Dunaev, the Chief AI Officer at Comply Control, underscores the profound influence of AI on embedded financial services. He explains that AI has significantly bolstered safety and efficiency by leveraging big data analysis and rapid risk assessments, thereby empowering financial companies to make well-informed decisions. Furthermore, the personalisation of services based on individual user assessments is a substantial trend facilitated by AI, resulting in the development of more customer-centric financial products.
Natasa Kyprianidou, a Senior Director at the management consulting firm Alvarez & Marsal, further delves into AI’s transformative impact. AI has substantially revolutionised the embedded finance sector by enhancing decision-making processes, particularly in credit assessments and risk management. Through AI-driven algorithms, traditional credit decision timelines have been markedly reduced, thereby rendering financial services more accessible and responsive to consumer needs.
Matt Purnell, a Research Analyst at Juniper Research, highlights how AI has streamlined various processes in embedded financial services, creating more efficient experiences for consumers. From making payment and lending experiences frictionless to improving data transparency and security, AI plays a pivotal role in enhancing overall consumer satisfaction and market growth.
Nelson Castellanos, the Chief Partnerships Officer at HDI Embedded, discusses how AI has become an integral component in enhancing customer experience across the broader financial services space. Examples of AI technology such as chatbots and virtual avatars that offer 24/7 support are now standard practice, providing more personalised guidance and enhancing the customer experience.
Kurt Azzopardi, the Chief Technology Officer of Andaria, notes that AI has profoundly reshaped the landscape of embedded finance, leading to a shift towards customer-centricity and seamless financial services. AI algorithms analyse user data to deliver tailored financial products and experiences within non-financial platforms, thereby promoting greater financial inclusion and enhancing user engagement.
Yaacov Martin, the Co-Founder and CEO of The Jifiti Group, points out how embedded lending platforms leverage AI to personalise the customer loan journey. From tailoring financing offers and recommendations based on a customer’s credit profile to using predictive analytics to anticipate a customer’s future financial needs, AI is instrumental in providing personalised lending options.
In conclusion, AI has undeniably made a significant impact on the embedded finance space, enhancing safety, efficiency, and customer experiences. With AI technology continuously evolving, we can anticipate further advancements that will drive innovation and enhance accessibility within the embedded finance industry.