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In 2017, Gartner predicted that the use of Artificial Intelligence for IT Operations or AIOps would increase by 40% in 2021. This has held up, as according to industry reports, the AIOps market value was $13.51 billion last year and is expected to grow to an impressive $40.91 billion in the next five years. The reason behind this is that AIOps finds applications in various fields. AIOps has particularly emerged as a key driver in the Fintech landscape.
In the financial sector, the use of AIOps enables quick monitoring, security, and efficient management of data. The financial sector handles a huge volume of sensitive data and IT Automation with AI can help reduce human error and workload. The automation of manual processes through AIOps will enable more efficient Fintech solutions. In this article, we explore the impact of AIOps in the finance sector.
Fintech in recent times
Fintech or Financial Technology is the application of technological tools to automate and enhance all financial services. Fintech includes the use of IT operations management software, algorithms, and even the development and use of cryptocurrency. Initially, Fintech was just focused on transactions, bookkeeping, and digital currency. However, in the past few years, Fintech has evolved to include the use of mobile devices for transactions, applications for credit, investment management, and other such financial activities which are performed without the help of an actual person.
The migration of financial data centers with the help of data center migration planning tools is also a part of Fintech. Such AIOps tools are used by large community banks and such financial institutions that have outgrown existing data centers and need one that can adapt to rapid growth and has sufficient bandwidth and infrastructure to accommodate all financial data.
Since financial institutions make use of various databases and networks, data center consolidation initiative services are also included under Fintech. These services help to manage servers, systems, and locations to improve efficiency for a low cost. Let’s understand how AIOps can help Fintech in the current fintech landscape.
How can AIOps help Fintech?
The financial sector is often at risk of data breaches and other such security threats. The use of some of the best AIOps platforms and software can not only prevent this but also greatly improve the quality of financial services and products that are offered to clients.
In 2021, AIOps possesses the power to enhance the financial sector through the following methods:
- Efficient day-to-day operations – The primary use of AIOps in Fintech involves improving efficiency. The combination of machine learning and data analytics drastically cut down on errors and improved the quality of the financial services being provided. AIOps digital transformation solutions analyze the demands and preferences of the customer base and help to create accessible digital products and services. This also reduces downtime which helps companies save thousands of dollars.
- Analyze and improve performance – AIOps in Fintech helps to analyze available data to understand problems and act against them. Financial institutions also make use of digital transformation services and solutions to predict what clients want in terms of financial service and improve engagement according to the analytics.
- Identification and prevention of fraud – One of the major use cases of AIOps in Fintech is in the detection of frauds and anomalies. When relying on old technology and manual processes, it can take approximately 6 months to figure out a data breach. But AIOps can do it in a few seconds. Financial institutions often use different tools to predict risks, identify third parties trying to log in, and illegal transfers of large sums. AIOps brings all these together. The AIOps dashboard constantly monitors data and all activities to make sure that no information is compromised.
- Monitoring and improving compliance – Compliance in banking or financial service businesses is the act of adhering to a set of rules or requests. AIOps can strengthen compliance and make sure that all work practices and standards are being followed and maintained. AIOps tools in Fintech can be used to identify issues before they become actual risks so that business does not suffer from loss of revenue or lose clients. Financial institutions are also using digital service desk AI software to improve overall work and client engagement.
- Reducing drawbacks – For a long time, financial institutions kept on-site servers to prevent security breaches. But this affects the speed of services and makes them unstable and less scalable. It also does not completely do away with risks and when the system is affected, it takes a long time for the support staff to solve the issue. However, AIOps algorithms continuously look for risks, bots, and DDOS attacks. Fintech makes use of the best AI auto-discovery tools to analyze server conditions. This reduces drawbacks significantly.
Effect of AIOps on IT Operations in the Financial Sector
The financial sector deals with data at every minute of the day. It can often prove to be a challenge for IT operations if a large volume of data must be processed at once. This is where AIOps comes in. In 2018, Gartner suggested that the use of AIOps in the form of monitoring tools for infrastructure and various applications would increase from 5% to 30% by 2023. The impact of AIOps, especially through tools like IT infrastructure managed services, is not only efficient but also transformative for Fintech.
The advancement of Fintech in recent years has led to the rapid digitization of services in the financial sector. Financial institutions are now using AIOps tools like the cloud migration assessment tool for businesses to shift data and optimize the services offered. Such solutions ensure security and better performance. For financial firms planning to invest in AIOps platforms for their unique needs, the time has never been better. With the advent of new technologies in AIOps, fintech is going to scale new heights.