AI in Fintech: Trends to Watch in 2023

The financial industry is currently undergoing an enormous transformation driven by artificial intelligence. As an experienced product manager and investor, I have followed this development closely, and here I share the most important trends for 2023.

1. Personal Finance Assistants

Chatbots and virtual assistants have developed significantly over the past year. We now see that they can offer tailored financial advice based on users' entire economic situation. By combining bank transactions, investment portfolios, and spending patterns, these AI tools can provide holistic recommendations that previously required human advisors.

Banks implementing such assistants see significantly higher customer satisfaction, especially among millennials and Generation Z.

2. Real-time Fraud Prevention

Traditional fraud detection systems use predefined rules that quickly become outdated. Modern AI models can instead identify anomalous patterns in real-time and continuously adapt to new fraud methods.

This has led to:

• 60% reduction in false positives
• 40% increase in detecting actual fraud
• Minimal impact on legitimate transactions

3. Alternative Credit Assessments

Conventional credit reports often miss individuals without extensive credit history. AI-driven alternative methods now use thousands of data points to assess creditworthiness, including payment patterns for rent and subscriptions, employment stability, and even digital behavior.

Banks that have embraced these methods have been able to expand their customer base by 15-30% without increased risk, by including previously overlooked but creditworthy customers.

Conclusion

For product managers in fintech, investments in AI are no longer optional but necessary to remain competitive. Organizations that successfully integrate these technologies into their core products, while maintaining transparency and ethics, will lead the next era of financial innovation.

Do you have questions about how AI can transform your fintech product? Contact me for consulting and strategy discussions.