Financial technology with its numerous innovative products and start-up companies has ensured that the country’s financial system in the United Arab Emirates (UAE) remains healthy, secure, and effective for the times to come. The growth of the Fintech Sector has been booming at a faster rate in the country because of the following contributing factors:
- Governmental policies and programs promoting Fintech;
- A population that is tech-savvy and open to adopting the newest innovative Financial Technologies;
- A highly-interested Private Sector that sees the potential of further growth of the Fintech Sector; and
- The attractive financial free zones encouraging investment and new businesses.
Artificial Intelligence (AI) is another significant development that can impact and perhaps contribute to the growth and sustenance of the Fintech Sector in the UAE. By the year 2031, UAE is also gearing up to become the first AI hub globally as it has adopted the ambitious National Artificial Intelligence Strategy 2031. Thus, as Artificial Intelligence (AI) becomes an essential component in every aspect of life in the country, it is bound to leave a lasting impact on the Fintech Sector. It seems that the combination of AI and Fintech in the UAE will be a force to be reckoned with in the years to come.
AI Will Make Fintech Solutions Deeply Secure
Thanks to Financial, and Technological solutions, many of you must have adopted digital financial options. But your digital data is usually protected with unique usernames and passwords, which might not be as secure as it used to be in earlier times. AI will help protect your digital financial data on Apps and online platforms by adding an extra layer of security through solutions like facial recognition, speech recognition, and biometric data recognition.
AI Will Enhance Customer Services
The whole reason behind the acceptance of Fintech in the country is that customers can access Financial Services conveniently and transparently. It gives the customers the chance to operate following their choices. Thus, the Fintech Sector depends on customer satisfaction. Through ChatBots and digital financial assistants, AI can conduct sentiment analysis and tackle customer issues efficiently while ensuring the growth of the customer network for Financial Institutions like a Bank and Fintech companies.
AI Will Promote Effective User Behaviour and Predictive Analysis
AI can be leveraged to optimize resource mobilization, revenue generation, business operations, internal processes, etc., within the Fintech Sector. AI can allow Fintech companies and institutions to conduct user behaviour and predictive analysis. With deep data mining and sophisticated statistics, the Fintech Sector in the country will be able to operate much more effectively.
AI Will Act as a Precaution Against Frauds and Risks
With AI tools and solutions at the disposal of the Fintech Industry, risk management and fraud detection will become much more robust and active. With advanced algorithms and cognitive analytics, AI has the potential of making the fraud detection systems accurate and predictive in a manner that losses and risks can be mitigated.
AI Will Encourage Better Management and Decision-making Prowess
Management decisions taken by the Fintech experts and industry drivers will be data-driven and analytics, thanks to AI. The Fintech Sector pioneers will get answers from machines instead of humans, which means an error in judgment and decisions will be reduced.
As said earlier, Artificial Intelligence (AI) is here to stay, and it will be good if the Fintech Sector in UAE prepares itself for its smoother integration and adoption.
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Disclaimer: This publication is for informational purposes only and does not provide any legal advice.