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AI-Driven Fintech & Open Banking: Enhancing Financial Well-Being & SME Efficiency in the UK & Europe
Subject area: Science,Engineering and Technology · Area of research: Artificial Intelligence
Abstract
Artificial intelligence (AI) is reshaping financial technology (fintech) by enhancing personal finance management, savings, and SME efficiency. AI-driven fintech applications leverage machine learning, predictive analytics, and automation to deliver personalized financial guidance, improve debt management, and optimize payment processing. Open Banking further revolutionizes the financial landscape by providing secure access to consumer financial data, fostering transparency, and increasing competition. This study explores how AI-powered fintech solutions integrate with Open Banking to address financial challenges in the UK and Europe. Research findings indicate that AI-driven financial assistants, debt management tools, and Open Banking payment solutions help individuals reduce financial strain, increase savings, and improve financial decision-making. SMEs benefit from AI-powered automation, real-time transaction insights, and cost reduction in payment processing. Additionally, the study examines the regulatory landscape, including PSD2 in Europe and Open Banking policies in the UK, which influence AI adoption and financial transparency. Regulatory considerations surrounding data security, ethical AI governance, and consumer protection remain crucial to balancing innovation with compliance. As AI and Open Banking technologies become more embedded in financial services, their potential to enhance financial literacy, streamline SME operations, and promote inclusivity continues to grow. This study provides insights for regulators, fintech firms, and SMEs on leveraging AI and Open Banking for greater financial efficiency and accessibility.
References
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How to cite this paper
@article{1704538,
author = {Nabeel Bin Muhammed},
title = {AI-Driven Fintech & Open Banking: Enhancing Financial Well-Being & SME Efficiency in the UK & Europe},
journal = {Iconic Research And Engineering Journals},
year = {2023},
volume = {6},
number = {11},
pages = {967-974},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1704538.pdf},
abstract = {Artificial intelligence (AI) is reshaping financial technology (fintech) by enhancing personal finance management, savings, and SME efficiency. AI-driven fintech applications leverage machine learning, predictive analytics, and automation to deliver personalized financial guidance, improve debt management, and optimize payment processing. Open Banking further revolutionizes the financial landscape by providing secure access to consumer financial data, fostering transparency, and increasing competition. This study explores how AI-powered fintech solutions integrate with Open Banking to address financial challenges in the UK and Europe. Research findings indicate that AI-driven financial assistants, debt management tools, and Open Banking payment solutions help individuals reduce financial strain, increase savings, and improve financial decision-making. SMEs benefit from AI-powered automation, real-time transaction insights, and cost reduction in payment processing. Additionally, the study examines the regulatory landscape, including PSD2 in Europe and Open Banking policies in the UK, which influence AI adoption and financial transparency. Regulatory considerations surrounding data security, ethical AI governance, and consumer protection remain crucial to balancing innovation with compliance. As AI and Open Banking technologies become more embedded in financial services, their potential to enhance financial literacy, streamline SME operations, and promote inclusivity continues to grow. This study provides insights for regulators, fintech firms, and SMEs on leveraging AI and Open Banking for greater financial efficiency and accessibility.},
month = {May},
}