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How Blockchain and AI Will Disrupt Finance by 2025
- Blockchain has the potential to ring a dramatic change in the financial system by establishing a decentralized structure.
- The use of Blockchain technology may greatly decrease the dependency on intermediaries by enabling transactions without involving banks or other payment processors.
- Smart contracts will allow automated financial transactions which can lower the costs as well as saving time.
- Transparency is increased in blockchain which makes it more secure. All records of transactions are available to the members which can considerably reduce fraud and other financial crimes.
- The blockchain technology allows tokenization of assets like stocks, property, and art and enables fractional ownership of financial products.
- Artificial Intelligence(AI) in finance would redefine the manner in which financial decisions are made.
- The AI based systems will identify threats and point out anomalies in real time, making financial transactions fraud-free and secure.
- Robo-advisors will reach an all-time high in popularity by the year 2025; AI algorithms will assess a client's preferences and financial goals and provide personalized investment advice along with rebalancing portfolios.
- AI is paving way for predictive analytics, which informs wise decision-making by offering data insights, market trends, risk evaluations and giving out investment tips.
- AI-Powered Chatbots in Customer Service will assist the clients for query handling, transactions, or financial product explanations.
- Blockchain integrated with AI will create a highly efficient, safe, and transparent financial system.
- AI can monitor live blockchain transactions, analyzing patterns to keep track of fraudulent activities even before they occur and significantly improve the overall security of transactions.
- The combination of AI and Blockchain can facilitate cross-border payments with prompt currency exchange, benefitting both consumers and businesses.
- AI would play a major role in offering insights and risk analysis in Decentralized Finance (DeFi) systems, thus making these decentralized platforms more efficient and secure.
- By 2025, DeFi might become a significant component of the financial ecosystem that shakes the very foundations of the traditional financial institutions.
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