Generative AI in FinTech: Transforming Financial Activities through Advanced Technologies

Abstract

The rapid convergence of finance and technology, commonly known as FinTech, has initiated a profound transformation within the financial sector. At the forefront of this evolution is Generative Artificial Intelligence (GenAI), a sophisticated subset of AI capable of creating novel content and solutions. This paper explores the integration of GenAI in FinTech, focusing on three core techniques: Natural Language Processing (NLP), Machine Learning (ML), and Deep Learning (DL). Through a comparative analysis of these methodologies, the paper examines their applications in personalized financial advice, fraud detection, and credit scoring, underscoring their potential to revolutionize the industry, including private equity. The paper also discusses emerging trends, such as the integration of AI with blockchain and quantum computing, and the implications of widespread GenAI adoption for the financial industry. The study concludes by emphasizing the need for continued research, particularly in explainable AI, cybersecurity, and AI-driven financial inclusion.

Keywords: Generative AI, FinTech, Natural Language Processing, Machine Learning, Deep Learning, Financial Innovation JEL Code Classifications: G21

JEL Classification: G21, G24, G32, O33, C45, O38