Harnessing the Power of AI for Enhanced Regulatory Compliance and Risk Management in Fintech
DOI:
https://doi.org/10.47941/ijce.1670Keywords:
Artificial Intelligence, Fintech, Regulatory Compliance, Risk Management, Fraud DetectionAbstract
Purpose: This article analyzes how artificial intelligence (AI) is revolutionizing risk management and regulatory compliance in the fintech industry. The objective is to conduct an analysis of AI applications, highlighting how it may be used for proactive risk management, fraud prevention, real-time regulatory monitoring, and risk assessment.
Methodology: Using a literature review methodology, the paper puts together data gathered from multiple sources to give a comprehensive knowledge of how AI is being applied to change the regulatory and risk landscape for fintech. As part of the method, significant works in the subject are reviewed and analyzed, and numerous perspectives are integrated to provide a thorough overview.
Findings: The results highlight how AI significantly improves decision-making processes in response to complicated risk situations and dynamic regulatory contexts while also increasing efficiency and lowering costs. Fintech practices are evolving due to specific applications such as proactive risk management, precise risk assessment, fraud detection, real-time monitoring, and accurate risk management.
Unique contribution to theory, practice and policy: The work adds additional value by combining various AI applications for risk management and regulatory compliance in finance. It provides useful insights for researchers, practitioners, and policymakers by bridging the gap between theory and practice. The article offers industry professionals useful implications in addition to educating the academic community on the complex effects of AI on fintech. It also draws attention to the necessity of flexible regulatory frameworks that can keep up with the fintech industry's rapid advancements in technology, which adds to the policy considerations in this dynamic environment. For individuals negotiating the convergence of artificial intelligence, regulatory compliance, and risk management in the fintech industry, the article is essentially a short and important resource.
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Copyright (c) 2024 Rajath Karangara, Abhishek Shende, Satish Kathiriya
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