Fintech Review sat down with Chirag Shah, Founder of Nucleus Commercial Finance, to get his view on how ultimately automation will drive better outcomes for customers. We talk about how artificial intelligence can make things better for customers, tackle the worries some have about AI being unfair, and look at the big changes coming in fintech. From keeping data safe to using blockchain and making sure companies can handle rules easily, there is a lot going on.
Tell us more about Nucleus Commercial Finance. What is your elevator pitch?
Nucleus Commercial Finance is an innovative fintech organisation that provides flexible and tailored financial solutions to businesses. Our goal is to empower businesses, providing them with the necessary tools for growth and success.
By leveraging advanced technology and understanding our clients’ unique needs, we offer effective funding solutions.
What is your background, and the story of your latest venture Pulse?
At university, I delved into engineering, maths, and finance, which paved the way for my venture into investment banking. My journey continued to a fund, where, amidst the 2007 financial crisis, I spotted a unique opportunity.
Recognizing the demand among UK SMEs for alternatives to traditional banking, I founded Nucleus Commercial Finance.
Do you think that AI can really lead to improved outcomes for customers?
Absolutely, I am firmly convinced that artificial intelligence (AI) and machine learning (ML) hold transformative power across numerous sectors, with the financial industry standing to gain significantly. Cutting-edge technologies allow us to thoroughly analyze large datasets. This enhances our precision in making predictions and customizing solutions for individual needs.
By leveraging AI and ML, we not only boost customer satisfaction through bespoke offerings but also streamline operational processes, leading to substantial efficiency gains and cost reductions for firms dedicated to meeting their clients’ needs. This strategic application aligns perfectly with the overarching goal of innovating financial services to provide more value and better service.
What do you think of people scared of AI, for instance in relation to potential bias in financial services?
Concerns regarding AI bias are significant and must be taken seriously by the industry to ensure fairness and non-discrimination. These biases can emerge both in the development phase and during operational use, potentially leading to biased outcomes. Businesses must establish strong ethical guidelines for AI, including ongoing monitoring and using diverse data to prevent biases. It is also important to be transparent about how AI works and makes decisions.
By committing to these practices, companies can mitigate bias, promoting fairness and inclusivity in AI applications.
What do you see as the major trends in fintech from the perspective of a serial entrepreneur in the industry?
There will likely be a greater focus on cybersecurity as transactions continue to move online. It’s really important that fintech companies continue to invest in ways to secure their data and that of their customers. RegTech will see growth as the demand for regulatory compliance increases. This will enable companies to efficiently meet any regulatory demands.
In terms of the technology we’ll see, I think blockchain will be key. We’ve spoken about it for years but it’s likely to be implemented further over the next 12 months especially when it comes to supply chain finance and ID verification. In addition to this, AI and ML will continue to drive innovation in every sector – none more so than in finance where it is being used to improve and personalise solutions.
Finally, I think we’ll see a push towards more holistic solutions with businesses being provided solutions to help with their day-to-day operations beyond just financing.
Are there any other innovations in fintech or elsewhere that you find particularly interesting?
Indeed, in addition to what has been discussed, open banking is set to be a significant trend within the financial sector. It will pave the way for an increase in services and better access to data. Additionally, it will foster a culture that values innovation and competitive dynamics. This development promises to bring about an exciting era for both providers and consumers in the financial industry.