AI and Machine Learning boosting FinTech – For sure the financial industry is using AI and machine learning to increase returns, lower costs and improve customer experience. The companies which are still not open to welcome and adopt changes brought through new electricity called Artificial Intelligence will slowly die because of no power. Quantum computing will add more power in AI and next generations wireless networks. The questions that remain are how far will the IOT, AI and ML etc. will go in FinTech, MFS and banking? How other sectors such as banking and investment banking can leverage these emerging technology? Of course, cybersecurity will become the biggest and a greater challenge of all times.


Artificial intelligence & FinTech

Artificial intelligence is poised to transform the financial industry. This intelligence will be built on modern software platforms that combine data from different sources. Data sources can be from a platform which generates data i.e social media or from data collection platform i.e back end system of any industry.


So for responding to 2 main questions as mentioned below around AI in FinTech

  • Where do all these AI trends fit into the FinTech & finance industry?
  • How the machine learning algorithm will transform financial technology services?

We need to go into little details about Finance, Banking, MNO provided financial services, Financial Technology, Blockchain, AI, Machine Learning and data science to put them together on one photo frame.



Digitisation gave banks the opportunity to take customer service to the next level. At the same time offering the possibility for higher automation. The related cost efficiencies are now taken care of by AI, chatbots and machine learning.

Essentially, digitisation took banks from just being product providers to a service offering, continuous contextualised services and helping customers to better understand their financial and commercial affairs and make smarter decisions.

Bank Inclusion Then and Now.png



MNO led Financial Services

Banks lost out on revenue from mobile transactions as MMS became increasingly popular.

Major success factors of MMS being the flexibility to transact at any time, anywhere and with access to make payments to utility bill companies, airtime sellers and merchants. To maintain relevance, banks started working on technology-based payment solutions in collaboration with card companies and opened their doors to all customers and services.


AILabPage’s FinTech Series – MNO Led Model

This brought about the merger of mobile money services, mobile financial services and mobile banking services. With this fusion, cross border remittances, peer-to-peer transfers, utility bill payments, internet & DTH subscriptions and income tax transactions completion within seconds.


Little History on Financial Technology – FinTech

FinTech or Financial technology is an industry combining and grouping companies that are making financial services including insurance services more efficient and advanced; with the use of technology.

FinTech Evolution – Companies coming in FinTech domain are startups founded with the purpose of disrupting incumbent financial systems and corporations that rely less on software but more on Banking as a Platform (Baap) and Banking as a Service(BaaS).

AI and Machine Learning boosting FinTech

Artificial Intelligence and Machine Learning in Finance, Regulation and Central Banking need to be taken and adapted as a basic need. Sadly till date most of machine learning algorithms today cannot offer to reason. At the same time, all of them predict assuming past will be repeated if all other factors in the business environment will remain constant.


Blockchain and Digital Payments – PaymentIntelligence

A blockchain is a new approach to managing/monitoring financial and other transactions. Main features for blockchain are

  1. Shared single point of truth
  2. Immutability
  3. Non-repudiable  – This means once the transaction is committed cannot deny later.

Digital Payments – Digital transformation of payments into secured PaymentIntelligence was the biggest breakthrough after 2008 financial crises or recession.


AILabPage’s FinTech Series – PaymentIntelligence


One View – AI, ML, Blockchain & FinTech

To put all of them in the picture is not an easy job though. We don’t have any successful model which has all these niche technologies in the photo frame. Lots of banks and FinTech are working to bring this amazing product which is fully functional and working into life.

Banking as a Service – BaaS – This is need of time. This will have the security of blockchain, the intelligence of machines and algorithm and eyes of AI. To draw the rough sketch just to give one view it might look like as below.

DeepLearning methods are helping time-series data processing and prediction for financial markets. These techniques for traditional feature extraction via intelligent trading decisions. are supporting the FinTech system. The used techniques are applied to several technical indicators and expert rules to extract numerical features. Algorithmic trading framework with the use of deep convolutional neural networks is good to start for FinTech



Books + Other readings Referred

  • Research through Open Internet – NewsPortals, Economic development report papers and conferences.
  • Personal experience of  @AILabPage members.



Sign-tConclusion- The financial services including insurance industry is facing a long pending wave of digital disruption. In the future; expectations are that the new methods and algorithms under deep learning framework could be applied to FinTech world. This would generate innovative applications in the next financial technology generation. This disruption has started to reshape the entire banking/payments sector already anyways.

Todays’s need for the payment industry is Payment as a Service – (PYaaS). PYaaS or now I call as PaymentIntelligence can solve current issues like high cost, slow-speed and bundles of papers for KYC. The new concept of BaaS with AI will revolutionise the market. We have too many payment companies in the market with zero or no experience but still doing good on gratitude basis as talent and education may not be needed here. Banks have platforms, but it’s probably fair to say it’s more like yesterday’s platform. What is needed is the Intelligent banking platform on clouds.


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Posted by V Sharma

Technology specialist in Financial Technology(FinTech), Photography, Artificial Intelligence. Mobile Financial Services (Cross Border Remittances, Mobile Money, Mobile Banking, Mobile Payments), Data Science, IT Service Management, Machine Learning, Neural Networks and Deep Learning techniques. Mobile Data and Billing & Prepaid Charging Services (IN, OCS & CVBS) with over 15 years experience. Led start ups & new business units successfully at local and international levels with Hands-on Engineering & Business Strategy.

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