Intelligent automation in FinTech : an exploratory study of how Norwegian providers of financial technology utilize intelligent automation in light of PSD2

Abstract

By performing a literature review and conducting semi-structured interviews with six business leaders on robotic process automation and artificial intelligence in the Norwegian financial services industry, this thesis analyzes how providers of financial technology utilize intelligent automation in light of the revised Payment Service Directive (PSD2). As the financial services industry experiences considerable upheaval based on digitalization and new regulations, incumbents and startups apply digital technologies to increase their competitiveness. Our findings indicate that by utilizing intelligent automation—the combination of robotic process automation and artificial intelligence—FinTech firms could improve all the components of their business model; value creation, value delivery, and value capture. While robotic process automation entails the use of bots to handle repetitive, high-volume, and rule-based tasks, artificial intelligence enhances the user’s ability to solve business problems by simulating human cognition using various algorithms, e.g., machine learning, natural language processing, and computer vision. Although robotic process automation often is deployed as a “patching tool” to deal with outdated legacy systems, our study reveals that it can yield extraordinary results. Rapidly altering how businesses operate, artificial intelligence is a cutting-edge technology applied in services like robo-advisors and virtual assistants. Our research shows that the combination of these technologies has the potential to disrupt the financial services industry in ways not thought of yet.