ARTIFICIAL intelligence (AI) could be the future of financial technology (fintech) in the Philippines, AI-decisioning platform Provenir said.

According to analysts from Robocash Group, the Philippine fintech market valuation has seen the entire market grow by 224 percent, from $3.4 billion in 2016 to $11 billion 2021. By 2024, the Philippine fintech industry could increase from P11 billion to P44 billion.

Furthermore, the global fintech market is expected to reach $332.5 billion by 2028, according to the forecast of the Vantage Market Research.

With this forecast, companies are expected to be offering financial services to customers to generate alternative revenue streams, personalize their customer journey and improve the overall user experience.

This was also shared by participants at the forum titled: “FinTech: A people’s revolution in the Philippines.”

“The pandemic and its restrictions caused a huge generational spike in the eruption of digital services and has demanded that businesses adapt themselves at a very high speed,” Bharath Vellore, Provenir general manager for Asia Pacific, said.

He also forecasted that fintech’s future is the conversion of every business into the fintech sphere while using AI as a guide.

“AI in fintech opens the doors for the digitalization of credit-rich verticals and diversifies products and capabilities. Agility and speed in personalization play critical roles in providing personalized offers to customers, aiding in hypergrowth,” he said.

However, fintech is not limited to digital banks and neobanks, but also embedded and open financial services that are becoming more and more prevalent.

“With so much innovation happening in the fintech space, there arises the question of how we can be more responsible and secure in our digital transactions for both businesses and consumers,” World Fintech Festival PH co-founder Amor Maclang said.

AI can also transform large amounts of data into valuable insights, such as consumer patterns, that help with fraud detection and business risk decisions. Also, AI fraud detection is fast, efficient and effective.

“AI also helps organizations discover new patterns in data that empower them to serve a much wider base of people,” Vellore added. “Moreover, AI can reduce transaction costs, improve data management and increase employee productivity.”