FinTech 2.0 – the comprehensive solution

Financial technology or FinTech refers to new technology designed to automate and improve the delivery of financial services. Among the technologies driving this finTech revolution are blockchain and AI. We have already seen the technologies used in healthcare, supply chain and logistics, online video (AIWORK) and finance.

The use of blockchain and AI in finance has enabled improved transparency, better data management, efficiency and greater security. Let’s understand how.

What is FinTech 2.0?

FinTech 2.0 is a term that describes new technology that seeks to improve and automate the delivery of financial services to users. It is used to help companies, consumers and business owners better manage their financial operations and processes using specialized software and algorithms used on smartphones and computers. When it first emerged, FinTech was limited to the back end of financial institutions; However, recent years have seen a clear shift towards consumer-oriented services. As a result, FinTech encompasses various industries such as education, fundraising, non-profit and retail banking. It also includes the development and use of cryptocurrencies such as Bitcoin.

The current FinTech landscape includes the following.

• Open bank
• Cryptocurrencies
• Insurtech
• Regtech
• Robo-advisors
• Cyber ​​security

FinTech and technology

FinTech uses various new technologies such as machine learning, artificial intelligence, blockchain, predictive analytics, data-driven applications and marketing techniques. Learning apps using AI will be able to learn user habits and preferences. Using chatbots and AI to help customers with basic tasks and questions also helps cut costs and make processes more efficient.

How Blockchain and AI are shaping FinTech 2.0

When we hear the word “blockchain,” our minds immediately register cryptocurrencies like Bitcoin. However, a blockchain is so much more. It is essentially a shared, immutable ledger that facilitates the storage of data through the process of cryptography. Meanwhile, AI refers to machines that use data and machines to mimic human intelligence and perform tasks that usually require human intervention. AI encompasses several fields, including machine learning and deep learning, which enable accurate predictions to be made using AI algorithms and data. AI can also learn from the data fed to it, becoming smarter over time.

Blockchain technology brings unprecedented transparency to finance, enabling more users to access financial markets through smart contracts, decentralized finance (DeFi) and smart contracts.

Let’s understand the benefits of blockchain and AI, which can be implemented in FinTech.

Efficiency

Blockchain and AI improve the efficiency of financial systems, providing greater value to customers by combining the two technologies and driving business processes, allowing financial institutions to maximize returns.

Better customer service

Banking processes can be faster and more convenient. A simple account can take several days to gather information from sources. Blockchains allow banks to store information in a decentralized manner, while AI algorithms can scan data and access the necessary information. This enables institutions to offer customizable services to customers.

Cheaper payments

Bank transactions are slow and expensive compared to blockchain-based cross-border because the latter do not require third-party authorization. Remittance costs for blockchain transactions are only 2-3%, while traditional banks charge anywhere between 5% and 20%.

Removes friction

Blockchain and AI enable trust, remove friction from multi-party transitions, thereby improving the overall speed of transactions. Additionally, with data stored on the blockchain, users can easily consent to access data, speeding up processes.

Fraud detection

Thanks to the blockchain, transactions or transaction data cannot be tampered with. Blockchain’s security helps reduce fraudulent transactions and improve fraud detection. Adding AI can help detect any transaction anomalies by sifting through massive data sets and looking for irregular patterns.

What does the implementation of Blockchain and AI mean for FinTech?

The current version of FinTech is highly centralized. Blockchain and AI can herald change, with a focus on more holistic solutions, resulting in better transparency, security and transaction speeds. Additionally, access to DeFi means a larger pool of investors resulting in more data. Large amounts of data are almost only possible to process effectively with AI. The use of blockchain improves transparency, while AI can scale processes, accelerate transaction speeds and extract insights from data.

How AIWORK uses Blockchain and AI

AIWORK was one of the first projects to recognize the potential of blockchain and AI. The project is an open source blockchain protocol developed using a network of human experts and AI computing resources, enabling the creation of normalized and enhanced metadata for video content. The protocol facilitates a marketplace consisting of human experts who verify and validate data. AIWORK also allows developers to create decentralized applications on the platform, while users can also run AI nodes or provide data and earn AWO tokens as rewards.

The project also has its trademark ContentGraph, which uses AI to define a confidence score for video content based on attributes such as language, hate speech, violence, weapons, etc., and assign suitability scores.

In Conclusion

Blockchain and AI will play a crucial role in the development of FinTech 2.0, enabling faster transactions, better security, cheaper payments and an overall better customer experience. We are already seeing the impact of these technologies in a number of industries. However, the technologies must be carefully integrated with existing banking operations.