Artificial intelligence (AI) could be the future of financial technology (fintech) in the Philippines, decision-making platform AI Provenir said.
According to analysts from Robocash Group, the Philippine fintech market valuation saw the entire market grow by 224%, from $ 3.4 billion in 2016 to $ 11 billion in 2021. By 2024, the Philippine fintech industry could grow. from P11 billion to P44 billion.
In addition, the global fintech market is expected to reach $ 332.5 billion by 2028, according to Vantage Market Research forecasts.
With this forecast, companies should offer financial services to customers to generate alternative revenue streams, personalize the customer journey, and improve the overall user experience.
This was also shared by the participants in the forum titled: “FinTech: a popular revolution in the Philippines”.
“The pandemic and its restrictions have caused a huge generation spike in the eruption of digital services and have required companies to adapt at very high speed,” said Bharath Vellore, Provenir’s general manager for Asia Pacific.
He also predicted that the future of fintech will be the conversion of every company into the fintech sphere using AI as a guide.
“Artificial intelligence in fintech opens the door to the digitization of credit-rich verticals and diversifies products and capabilities. Agility and speed in personalization play a key role in delivering personalized offers to customers, driving hyper-growth,” he said. .
However, fintech is not limited to digital banks and neo-banks, but also to embedded and open financial services which are becoming more and more popular.
“With so much innovation taking place in the fintech space, the question arises as to how we can be more accountable and safer in our digital transactions for both businesses and consumers,” said World Fintech Festival co-founder PH Amor Maclang.
AI can also transform large amounts of data into valuable insights, such as consumer models, which aid in fraud detection and business risk decisions. Hence, AI fraud detection is fast, efficient and effective.
“Artificial intelligence also helps organizations discover new patterns in data that enable them to serve a much broader base of people,” added Vellore. “In addition, AI can reduce transaction costs, improve data management and increase employee productivity.”