Machine learning is a kind of AI that provides computers with the ability to learn without being specifically programmed. The science behind ML is application-oriented. Several startups have disrupted the FinTech ecosystem with ML as their key technology.
There are various applications of ML used by FinTech companies falling under different subcategories. Here are some of the applications of machine learning and companies using such applications.
Companies in the lending industry are now using machine learning to predict bad loans and build credit risk models.
Here are a few companies using this application:
Financial processing and decision-making could be enhanced by machine learning technologies that allow computers to process data and make decisions (such as credit-related) quickly and more efficiently. Some of the companies using such applications are:
Information extraction has been a major application of machine learning. It involves extraction from Web content like articles, publications, documents, etc. The various companies using these applications are mentioned below:
According to IBM research, fraud costs the financial industry approximately $80 billion annually; US credit and debit card issuers alone lost $2.4 billion.
“We are able to apply complicated logic that is outside the realm of human analysis to huge quantities of streaming data.” – Manager, Machine Learning Technologies Group, IBM Research
With the help of ML, fraud detection can be made effective and efficient. The solutions created will be able to analyze historical transaction data to create a model which can detect fraudulent patterns. Some companies also using ML for biometric authentication. Prove’s UnifyID is one of the companies working in this field:
Machine learning is used in creating algorithms for trading decisions. Algorithmic trading, also called high-frequency trading, uses automated systems to identify true signals among the vast amounts of data which capture the underlying stock market dynamics. ML provides powerful tools to find patterns in market trends.
Here are companies using machine learning for building trading algorithms:
Join 1,000+ companies and 500 banks, including 9 of the top 10 US financial institutions, that are already using Prove to accelerate revenue, mitigate fraud, and enhance customer experience. Contact us today.
Contact us to learn how leading companies are using Prove Pre-fill to modernize the account creation process by shaving off clicks and keystrokes that kill conversion.
Get in touch to find out how we can help you identify your customers at every stage of their journey and offer them seamless and secure experiences.
Let our expert team guide you through our identity verification and authentication solutions. Select a date and time that works for you.
Find out how we can help you deliver seamless and secure customer experiences that comply with PSD2/SCA. Select a date and time that works for you.