Integration of Financial Technology (FinTech) and Artificial Intelligence

Abstract

Purpose: This study aims to examine the impact of AI on FinTech by analyzing its applications, benefits, and associated challenges. It seeks to provide insights into how AI-guided solutions improve financial services while addressing risks related to data privacy, algorithmic biases, and legal frameworks. The research also explores emerging AI trends and their potential implications for the financial sector.

Design/Methodology/Approach - A qualitative research approach is adopted, utilizing secondary data from academic literature, industry reports, and case studies. The study employs a systematic review method to analyze AI’s role in fraud detection, risk assessment, customer engagement, and financial decision-making.

Findings - The study finds that AI significantly enhances financial service efficiency, reduces fraud, and improves customer personalization. However, concerns related to cybersecurity, ethical considerations, and regulatory challenges remain prominent. Effective AI governance and regulatory frameworks are crucial for maximizing its benefits.

Originality/Value - This study contributes to the existing literature by offering a comprehensive analysis of AI’s impact on FinTech. It provides valuable insights for policymakers, financial institutions, and researchers on balancing AI innovation with regulatory and ethical considerations.

Paper Type: Review of Literature