Newer technologies in the financial industry or fintech are consistently bringing in better ways for consumers to interact with money. Higher technologies have made the financial services market easier to handle, reduce errors, facilitate processing and improve communication. Both consumers and financial institutions alike greatly benefit from the use of such technologies that have improved customer relationship while increasing profitability. Though different financial services will have different names for functions based on such technologies, the bottom-line is greater benefits for all.
Here are the top 7 emerging technologies in the financial services industry to go by.
1. Artificial Intelligence (AI) & Chatbots
There is huge amount of data that the financial services industry is churning out every day. This data is processed and used for the benefit of customers and service providers alike. From automated operations to compliance and risk management, back-office operations to fact-based unbiased credit decisions, AI is set to and is already playing a big role in transforming the way that this industry works.
The other big game changer is the role that chatbots are playing in the digital transformation of the financial sector. Chatbots are the visible end of the use of AI in this service industry where Machine Learning (ML) algorithms carry out a gamut of tasks ranging from answering queries to handling deft backend operations.
2. Robotic Process Automation (RPA)
Robotic Process Automation is among the most common technologies that financial services are using to take care of fixed and repetitive processes. These algorithms are based on both structured and unstructured data and at times also integrate learning processes. This enables easy handling of increasing volumes of data that is generated over the months. Maintaining logs, logging data, automating repetitive processes and generating reports are some of the known functions that come under the ambit of RPA. All of the processed data is then uploaded across apps and servers to give both users and the service providers with the latest information.
3. Cloud computing
Cloud computing has made possible 24/7 banking and other financial services while providing secure storage. These financial institutions have greater interoperability with customers based on anytime and anywhere mode of operation. All services and transactions can be explored seamlessly helping reduce customer load, time and effort for all. Emerging data analytics helps the process with customer behavior prediction and customization of products making all of the services more customer-friendly and easily accessible to all.
4. Hyper-Personalization
Customers are increasingly expecting personalized services than ever before. Generation Z, who are estimated to be mainstream customers of the financial services industry in the coming years expect to be treated with a form of personalization that preceding generations have not seen. This hyper personalization of services will allow customers to get their personalized suite of financial products based on their needs, circumstances and preferences from the wide spectrum of features and benefits available to them.
Gone are the days of one-size-fit financial services for all, welcome to the age of tech-savvy, hyper-personalized services!
5. Instant Payments
With the coming of advanced technologies in financial services app development, financial transactions have changed forever! Instant payment services are among the leading features that most customers look for when using gateways of financial institutions. There are a host of options that such institutions offer to customers ranging from immediate payments through apps to immediate P2P or partner to partner payment experiences. Combining and expanding instant e-and-m-commerce services will help financial institutions further expand their portfolio of customized services.
All of these technologically enhanced services are aimed at improving customer satisfaction and convenience of doing business anytime and anyplace. Use of such technologies also means less physical cash handling and more of digital transaction with increased speed and efficiency.
6. Blockchain
Use of blockchain technology is bringing about transformational impact on the financial services industry. Among the first impacts is the complete transparency of services along with improved efficiency that is also cost-effective and secure. Inter-banking transfers, fraud detection and loan processing are some of the pivotal areas that are already making extensive use of blockchain technology for impeccable results. The potential of using blockchain in financial services is immense and ultimately, there will be clear guidelines on the use of this technology in the years to come, as it is set to take over the industry operations.
7. Financial Inclusion
Partnering with Fintech startups is among the most prominent ways of getting rid of legacy banking systems that stand as a barrier to growth and customer satisfaction. Such companies are helping financial institutions make smart use of emerging technologies to introduce newer products and services to cater to the exact needs of customers. Digital banking experiences that come as a one-stop-shop for multiple and cross platform services ranging from trading and investment to savings and credit card use.
Tie-ups with non-banking aggregators help accelerate financial inclusion by providing services through apps like Google Pay and the like. These are over-simplified ways of handling digital payments through mobile wallets that is fast and safe. These are especially helpful to people living in remote areas and those belonging to the lower income strata who can have access to instant payments anytime and anyplace.
All emerging technologies have a lot to offer if you’re looking to pep up financial services of your organization. Developers skilled in building digital platforms can come up with solutions that are specifically meant to ease and expand operations and services offered. From building chatbots to apps and AI-guided algorithms, there is much scope of improvement of services using such emerging technologies.
