Michael Zetser entrepreneur, a renowned name in the fintech industry, states that ChatGPT has the potential of revolutionizing the entire sector, as long as it is used right. The year 2023 has proven to be an exciting one for the world of artificial intelligence (AI), as number of cutting-edge technologies were rolled out. The most prominent of them all was OpenAI’s ChatGPT, which is capable of performing numerous tasks, from passing exams, to editing and copywriting.
In fact, it can even do the impossible like replace Google. Thus, it is not surprising that there are endless possibilities of what can be achieved in the world of finance. Michael Zetser explains that the use of AI in the fintech industry is not new and has been done before, but the market was not quite ready for it.
The use of AI
Today, financial institutions are taking complete advantage of the perks it can offer, such as harnessing the technology of chatbots for providing customers with convenient channels for engaging with their products and services and improving their processes. Some of the chatbots that banks are utilizing nowadays include UBA’s Leo, Access Bank’s Tamada, Keystone’s Oxygen, Fidelity Bank’s Ivy, Stanbic’s Sami and Diamond Bank’s Ada. Banks are able to save costs, increase efficiency and deliver an improved customer experience with chatbots.
According to Michael Zetser, the natural language processing capabilities of ChatGPT can help revolutionize the entire fintech industry. It can be used for automating financial processes, improving customer service and even offer personalized financial advice. Some of the ways it can help are outlined as follows:
ChatGPT can come in handy for financial institutions for developing advanced chatbots that are able to comprehend customer enquiries with greater accuracy and efficiency and also respond to them. These chatbots can provide customers with assistance for dealing with investment advice, bill payments and account management. It can enhance the customer experience significantly and also cut down the workload of human representatives.
Financial institutions can integrate ChatGPT into virtual assistants and chatbots for providing more efficient and accurate responses to customer inquiries, thereby ensuring customer satisfaction as well as loyalty.
As per Michael Zetser, automating financial processes like risk management and fraud detection is another way ChatGPT can prove to be useful. This is due to the fact that it is capable of analyzing massive amounts of data quickly in order to identify any anomalies and patterns and then make decisions accordingly. These processes will become more efficient and accurate, which minimizes the risk of fraud and also reduces costs.
Another way fintech can leverage ChatGPT is to offer customers personalized financial advice. The technology has the capability of analyzing customer data for recommending relevant financial products and services in accordance with their goals and needs. Some of the financial data that it could analyze for offering this advice includes income, spending patterns, savings and more. It can empower customers to make better financial decisions.
Fintech guru Michael Zetser has also highlighted that one of the ways the sector can leverage ChatGPT is to improve its regulatory processes and compliance. The AI can be helpful in generating compliance documents and reports, as it can provide the data required accurately and quickly, which saves cost and time.
These use cases indicate that key stakeholders within the fintech space can enjoy significant benefits because of ChatGPT, which include regulators, financial institutions as well as customers. The technology can enhance the risk management and fraud detection approach, customer experience, offer personalized financial advice and automate a number of processes.
Nonetheless, Michael Zetser pointed out that there will also be potential downsides and challenges associated with ChatGPT, which is expected with any new technology. There will be concerns about the privacy and also security of customer data. In addition, with more tasks becoming automated due to ChatGPT, there will also be a risk of job displacement. But, as long as these challenges are dealt with appropriately, ChatGPT can transform the fintech industry in the future and make lives more convenient and easier.
Another important detail to note is that with the integration of ChatGPT in the fintech space, new roles would open up for people who have an expertise in AI techniques and tools. These would allow them to develop great products and resolve critical problems quickly. This means that people need to keep up with the evolution of technology in order to update their skills.
While ChatGPT might displace some roles, it is likely to open up others and this means new career paths for those who want to work in the world of fintech. This would help financial institutions in solving crucial problems at a faster pace, develop better and useful products and services and deliver an improved customer experience.