Fintech is a term that refers to the implementation of technology to financial services to enhance or automate banking and investing processes. In financial institutions, artificial intelligence (AI) is increasingly utilized to recognize and mitigate fraud via digital banking channels. Mobile banking, insurance, digital loans, credit scores, asset management, and purchasing and selling operations are all included. By observing how customers interact and examining their purchases, AI technologies can determine a customer’s normal behavior. Financial services, on the other hand, use AI to protect their customers’ personal information. By rapidly evaluating vast algorithms, AI plays a vital role in safeguarding against fraudulent cases. AI can also help with the analysis of consumer information for people who don’t have a credit history and whose credit history has already been erased. Peer-to-peer (P2P) businesses assess their potential customers’ behavior and determine the risks involved with doing business with them.
Innovative ideas necessitate innovative financing solutions, which the Mohammed bin Rashid Al Maktoum Innovation Fund provides. The Innovation Fund seeks to provide AED2 billion in funding to support the development of innovative start-ups. The Fund’s targeted financial risk management and business development instruments aid in the facilitation of innovation activities and support to the UAE’s long-term growth. Therefore, these factors are expected to escalate the growth of the regional AI in fintech market over the forecast period.