AI in Fintech: Bridging the Financial Divide, Not Widening It
The New Frontier: AI’s Role in Finance
Artificial intelligence (AI) has emerged as a crucial element in the rapidly evolving fintech landscape. With capabilities ranging from real-time fraud detection to the creation of hyper-personalized financial products, AI is altering the way customers interact with financial services. However, amidst this rapid advancement, a pressing question remains: who are we leaving behind?
According to the World Bank, over 1.4 billion adults globally remain unbanked, highlighting a significant gap in financial access. As fintech evolves, it must ensure that technological advancements also promote financial inclusion, addressing the needs of those who have been historically marginalized.
A Ticking Clock: A Once-in-a-Lifetime Opportunity
The UAE stands at the forefront of fintech innovation, witnessing a surge in digital banking, cryptocurrency, and blockchain technologies. This landscape creates an invaluable opportunity to construct a world-class infrastructure dedicated to purpose-driven financial solutions.
For a nation characterized by its diverse population and vision of the future, integrating inclusive AI is not just an option; it’s a strategic necessity. Many individuals, especially migrant workers who are vital to the UAE’s economy, struggle to access essential financial products tailored to their unique circumstances.
Financial Inclusion: Beyond Buzzwords
Financial inclusion extends beyond merely opening a bank account. It encompasses the empowerment of residents with tools that enable them to manage their finances, send remittances affordably, access micro-credit, and ultimately establish a safety net for their families.
When integrated responsibly, AI can play a pivotal role in facilitating this vision. Technologies like biometric identification, multilingual interfaces, and intelligent risk profiling can break down barriers for underserved communities—those lacking formal documentation or credit histories.
Transforming Remittances: A Catalyst for Change
In economies reliant on remittances, AI holds the potential to enhance speed, transparency, and affordability for cross-border transfers. With a robust regulatory framework and a nurturing environment for innovation, machine learning can significantly improve transaction flows, lessen delays, and eliminate unnecessary fees.
These changes are more than theoretical; they represent tangible enhancements to the daily lives of individuals and families dependent on these services.
The Importance of Timing: Why Act Now?
The McKinsey Global Institute estimates that generative AI could contribute between $200 billion and $340 billion annually to the global banking sector. However, the challenge lies in ensuring that this value equates to broader access and tangible benefits for individuals and communities.
As financial institutions begin adapting AI at scale, a unique window of opportunity arises. It allows the embedding of inclusion into foundational systems—from the design of services to the audience they target.
National Strategies: Aligning Innovation with Inclusion
The UAE’s national strategies, such as the AI Strategy 2031, position the country as a trailblazer in AI, focusing on ethical, inclusive, and impactful applications across diverse sectors, including finance. Complementary to this is the Digital Government Strategy 2025, aiming to foster an inclusive and user-centric digital society.
With clear pathways established and an increasingly mature global AI landscape, the time has come to ensure that fintech not only advances in sophistication but also embodies human values and meets real-world needs.
Human-Centered AI: The Future of Financial Services
This evolutionary phase comes with its responsibilities. Financial institutions must view inclusion as an essential pillar rather than an afterthought. This necessitates designing AI systems with diverse datasets, incorporating multilingual functionalities, and creating accessible experiences that resonate with the communities served.
Collaboration among traditional banks, fintech innovators, regulators, and governmental bodies is crucial to establishing frameworks that guide the ethical and inclusive development of AI technologies.
Ensuring Human Connection in a Digital World
In a multicultural environment like the UAE, it is critical that AI complements rather than replaces human interaction. A multichannel approach—integrating digital solutions with physical interactions—will ensure that financial literacy and personalized support are accessible to everyone, thereby leaving no one behind.
A Call to Action: Redefining Financial Excellence
The fintech revolution has been characterized by speed and disruption. However, as we move forward, responsibility must underscore the next chapter. Financial inclusion should not merely be a checkbox; it forms the foundation for sustainable economic resilience and social unity.
AI provides an extraordinary set of tools, but their true value is dictated by how and for whom they are employed.
Shared Vision for the Future
Let us strive for a future where advancements are collectively enjoyed, access is broadened, and technology is leveraged as a vehicle for positive change. The journey ahead calls for a commitment not only to innovation but also to ensuring that everyone can partake in the benefits of fintech.
Conclusion: The Time for Inclusive AI is Now
As we navigate a world increasingly driven by technology, the imperative to incorporate inclusive practices in AI-driven fintech becomes ever more critical. The bridge to a more equitable financial future can only be built through collaboration, innovation, and a shared commitment to serving all members of society—especially those most in need. The stakes are high, and the time to act is now.
Hasan Fardan Al Fardan is the CEO at Al Fardan Exchange.
