Adaptive AI-Driven Risk Management in Fintech for Enhanced Fraud Detection and Predictive Analytics

Financial risk management is essential for protecting both traditional institutions and the fast-evolving fintech sector. However, fintech brings new challenges, such as increased fraud and market volatility, which conventional risk management strategies are often inadequate to address. To overcome these obstacles, fintech companies are increasingly turning to Artificial Intelligence (AI) and Machine Learning (ML) technologies to enhance and automate risk assessment, fraud detection, and decision-making processes. While these technologies offer benefits like real-time risk assessment and predictive analytics, they also introduce challenges such as algorithmic bias, regulatory compliance, and data integrity issues. In this paper, we propose a fintech-specific risk management framework that employs advanced AI techniques, including neural networks and unsupervised learning, to detect anomalies and predict risks in transaction data.