3 Ways Ai in Fintech Products Can Help Reduce The Impact Of The Recession 2023

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Ai in Fintech Products Can Help in Future

Introduction

We are in the first month of 2023. What do we read every day?

We are nearing a recession. In January alone 1,600 Tech employees are being fired every day. Sales Force has fired 11000 employees. Amazon has fired 10,000 employees. In fact, Amazon has issued a warning signal to 2,300 more employees.  Experts believe that the Fintech industry has a critical role to play in this recession. The AI market in the Fintech Industry alone is expected to reach 7.9 Billion dollars this year. Thus Fintech as an industry might not be able to delay a recession. However, it has the potential to reduce the impact of the recession on the general public.  Let us discuss a few use cases.

 

1. Recession Aligned Spending 

Firstly, spending on analytics is an important opportunity in the fintech space. The effective use of Ai can create useful patterns to understand various buying behaviors of all wallet users. Spending analytics as a subject has not been a great focus area worldwide.

However, Ai enabled spending analytics can be integrated with the recession signals to alert wallet users while they are spending. This way the general public can be reminded of the upcoming recession. This will definitely help enhance the consumer experience for wallet users. Also, it will give the wallet operators an opportunity to guide their users on how to curm their spending for the next few months to reduce the impact of the recession on them.

2. Investments Amidst Recession

Secondly, investments during a recession become another amazing opportunity. In fact, it has the potential to completely change the fate of any ongoing recession. If fintech founders can leverage Ai to recommend investment opportunities that are customized exclusively for the recession.

To add to this, by leveraging Ai in Fintech founders can integrate current real-time market scenarios into their recommendations.

3. International Payments

Another important opportunity that can help the globe is international payments.

International payments drastically reduce during recessions. One of the reasons is the heavy conversion charges. To add to this, international payments take 7 – 10 days to reach the beneficiary.

Fintech founders can change the complete landscape of international payments. In fact, if Ai is put to the right use a large number of payments might not require to be converted. E.g. Let us say “ A “ in the United States wants to pay $ 100 to “B” in India. Also, “ B ” in India wants to Pay $ 100 to “C” in the United States.

In current international payment scenarios, the conversion charges will apply twice. However, with effective use of Ai “ A” can directly pay “ C ” and no conversion charges will be applicable since the entire transaction happened in the United States.

Conclusion

To conclude, the Fintech Industry cannot completely change the impact of the recession. However, if Fintech founders can put Ai to the right use, the impact of the recession can considerably be reduced.

Thus 2023, where we are in the middle of the fintech wave we urge fintech founders to think out of the box. The world is about to hit a huge financial crunch. When others see a challenge the real fintech heroes should see an opportunity.

Please write in comments a use case where fintech as an industry can reduce the impact of the recession in 2023.

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