Nigel Green, the CEO and founder of deVere Group, predicts that AI will fundamentally alter the financial services sector.
It is impossible to overstate the potential impact of artificial intelligence (AI) on African financial technology (fintech) companies. Nigel Green, the CEO and founder of deVere Group, predicts that AI will fundamentally alter the financial services sector.
He mentioned how it would alter both how people live and how businesses operate. The deVere Group is an independent asset management, financial advisory, and fintech company.
Green highlighted how chatbots and virtual assistants could be used by African fintech companies to provide personalised customer service around-the-clock.
Additionally, it has the ability to analyse enormous amounts of data in real-time, which will help financial institutions spot fraudulent activity and unusual behavioural trends. As a result, they would be able to make decisions more quickly and effectively by analysing data to gain insights into potential opportunities and risks.
Financial institutions can make better trading decisions thanks to their algorithms’ ability to precisely evaluate market reports and forecast upcoming trends and patterns.
Through the automation of compliance procedures and the identification of potential non-compliance hotspots, the use of AI in fintech would also assist businesses in adhering to regulatory and reporting requirements.
Although there may be advantages, there are concerns about the moral and social ramifications, such as bias and privacy. Green, however, thinks that AI has the power to significantly improve a range of sectors, including business, healthcare, education, and public services.
The fintech sector in Africa has already embraced AI technology, and many businesses are looking into its potential. For instance, the Nigerian fintech startup Kuda Bank introduced a chatbot feature in 2021 that allows users to conduct transactions via messaging services.
Real-time updates on account balances, transaction histories, 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.
The adoption of AI in Africa’s fintech sector is not without its difficulties, though. Lack of access to data is a major barrier because efficient algorithm training requires a lot of data. Additionally, the continent is lacking in qualified AI professionals.
While the adoption of AI in Africa’s fintech sector offers a chance to transform financial services and improve customer experiences, businesses must overcome the difficulties of doing so and make sure they take the ethical and social ramifications into account.
According to Green, “AI will change the financial sector for the better in more ways than in most sectors by pushing the boundaries, improving efficiency, reducing costs, and providing better services to their clients.”