Nigel Green, CEO and founder of deVere Group, predicts that AI will fundamentally change the financial sector.
It is impossible to overstate the potential impact of artificial intelligence (AI) on African financial technology (fintech) companies. Nigel Green, CEO and founder of deVere Group, predicts that AI will fundamentally change the financial sector.
He mentioned how it would change both how people live and how businesses operate. DeVere Group is an independent asset management, financial advisory and fintech company.
Green highlighted how chatbots and virtual assistants can be used by African fintech companies to provide 24/7 personalized customer service.
In addition, it has the ability to analyze massive amounts of data in real time, which will help financial institutions detect fraudulent activity and unusual behavioral trends. As a result, they will be able to make decisions faster and more effectively by analyzing data to gain insight into potential opportunities and risks.
Financial institutions can make better trading decisions thanks to their algorithms’ ability to accurately evaluate market reports and predict upcoming trends and patterns.
By automating compliance procedures and identifying potential non-compliance hotspots, the use of AI in fintech will also help companies comply with regulatory and reporting requirements.
While there may be benefits, there are concerns about the moral and social consequences, such as bias and privacy. However, Green believes that AI has the power to significantly improve a number of sectors, including business, healthcare, education and public services.
The fintech sector in Africa has already embraced AI technology and many businesses are looking at its potential. For example, Nigerian fintech startup Kuda Bank introduced a chatbot feature in 2021 that allows users to transact via messaging services.
Real-time updates on account balance, transaction history and other services are also provided by the chatbot. Zande Africa, a South African fintech company, uses AI to offer microloans to small businesses, and Lendable, a Kenyan fintech company, uses AI-powered solutions to process loan applications quickly.
However, the adoption of AI in Africa’s fintech sector is not without difficulties. Lack of access to data is a major barrier because effective algorithm training requires a lot of data. In addition, the continent lacks qualified AI professionals.
While the use of AI in Africa’s fintech sector offers a chance to transform financial services and improve customer experiences, companies must overcome the difficulties of doing so and ensure that they consider the ethical and social implications.
According to Green, “AI will change the financial sector for the better in more ways than most sectors by pushing the boundaries, improving efficiency, reducing costs and offering better services to its clients.”
