We all know this for the fact that technology has been reshaping a plethora of industries starting from healthcare to enterprises, education, retail & manufacturing, customer relationships, media and entertainment, food, financial services industry and what not! Today smart use of technology has become the must-do thing or the sure-shot way to succeed irrespective of your industry vertical. And why not, since we are all living in the digital era, where each one of us has a bit of know-how regarding the usage of computing devices, smart devices, what is artificial intelligence and how these technologies, especially the disruptive ones are transforming their lives day in day out.
Like it or not, technology or digital transformation will be seen changing the future of all industries. The only thing you can do is, businesses must come up with certain ways or tricks that can assist them in using the tech to their full advantage. Of course, we don’t have so much time to discuss each and every industry, the following blog focuses on the financial services industry. How disruptive technologies such as robotic process automation, artificial intelligence, cloud computing, mobile payment services, cloud services, distributed ledger technology, hybrid cloud technology, digital wallet, have changed the financial industry in one go. At present, Fintech solutions now have become the most crucial aspect for most organizations. Here at the end of the post, you will find which financial technologies are found making an impact on the current finance industry.
Fortunately, there are numerous financial software development companies that offer development services and like none other. However, before choosing them or even before you start looking for them, it is advisable to read away from the post that emphasizes top fintech solutions and banking services that will transform the entire financial education industry in no time. So brace yourself and let’s get started!
About the Financial Institutions and Why is there a need for new technology in financial services Realm?
Modern technologies seem to be booming and almost all progressive financial services companies are found jumping on the bandwagon to enhance their speed, productivity and efficiency. The adoption of software solutions and emerging technology is increasing day in day out, and trust me such a massive impact cannot be overlooked. Right from advanced online payment systems to cybersecurity (low cyber threats), managing risks, smart contracts, consumer data analytics, fraud detection, connected ecosystem, all this seems to be gaining traction by the rise of new solutions offered by information technology in the finance industry.
Further, I would like to mention certain reasons stating why the significance of financial services has grown like never before. Basically, let us go through certain benefits offered by emerging technology in the financial services industry.
#1 Global Reach
One of the obvious reasons for choosing digital transformation is getting the global reach in no time. Unlike traditional financial institutions, today organizations have gained more customer onboarding with the help of mobile banking and connectivity. You see earlier conventional financial institutions used to allow limited coverage and connection. Today, anyone can sign up for financial services from anywhere, it is no longer a compulsion that he should be living in a city or a town. All they have to do is get started with a few clicks. So basically, it is a safe bet to say that the emerging technologies among the financial services industry have resulted in breaking the geographical barriers like never before.
Of course, improving customer experience has always been a motto for financial institutions since the beginning but it now seems to be implemented appropriately. With the advent of digital transformation, such as artificial intelligence, cloud computing, chatbot, mobile payment, debit and credit cards, etc the financial services industry seems to have grabbed the attention of their present and potential customers. I mean who doesn’t like comfort and convenience. Now paying electricity bills or transferring money seems like you can do it in one go.
Not to mention that emerging technologies offer much-needed convenience in comparison to traditional financial institutions. With the help of mobile banking, everything has become possible. Whether you have to sign up for service to consulting customer inquires, mobile payments, transfer of relevant funds, the financial services industry has changed and improved to a great extent.
Last but not least is high speed and safety. The present financial services industry has to keep pace and be safe at the same time. Traditional financial institutions would take days to process the basic transactions. Apart from speed, safety and security are major concerns in the financial services industry. And the best part is they offer it all! With the rise of emerging technologies, risk management and fraud detection can be easily taken care of. So fret not because your data, important details are safe with your financial services providers.
Disruptive Digital Technologies Every Financial Services Companies Must Follow
Moving on to the main part of the post. Now I would like to shed some light on certain emerging technologies that have been resulting in the digital transformation of financial institutions across the globe. So let’s get started with it!
One of the rising emerging technologies among all sectors is artificial intelligence. And it may quite interest you to know that the financial services industry is found making the most of the technology. I am sure you must be well-acquainted with what customer service chatbots are? Well, what you might not know is that they are developed using AI technologies. Also, these chatbots successfully assist in offering financial advice, dealing with insurance and several other financial services. It is rightly said that AI will be dominating the world and not just the financial industry. For now, it is important to know that due to AI, humans can focus on more core activities in comparison to earlier scenarios.
Another interesting or should I say intimidating disruptive technology is robotic process automation. RPA is known for short. As the name implies, this fintech technology is created to automate everything around. This includes all the small, monotonous procedures such as customer onboarding, assessing risks, risk management, security, data analysis, compliance procedures and so forth. In simple words, RPA saves ample of your time, effort and energy as you don’t have to waste it in doing such stuff. You see both Ai technologies and RPA is meant to improvise your organization in comparison to other financial institutions.
The next one in line when considering some of the finest emerging technologies is Chatbot. As mentioned earlier, chatbots and Artificial Intelligence pretty much go hand in hand and have become one of the core business models for the present financial services industry. Irrespective of the size, whether the financial institution is large or small, chatbots and AI is must-have things! I still remember the time when Chatbots were newly introduced, a few years ago! Nobody would believe in the emerging technology offering a human-like experience. Fortunately, today with the change in times people’s perception has also changed and they haven’t just acknowledged such kind of emerging technology but also started making the most of it.
Today almost all customer interactions are conducted by Ai-powered chatbots and much to surprise consumers are extremely happy with it since they have some quick responses to their queries. In fact, the best part is the technology has the potential to learn and grow from the existing database and previous interactions offering relevant purchase-related suggestions.
Another interesting trend that has been enhancing fintech services to the next level is Blockchain technology. In fact, several industries by now do believe in the fact that the Blockchain industry is the spine of the global economy. Speaking further about the technology, with the emergence of Blockchain the rise of security and accountability has been observed. As a result, cost-effectiveness, decentralization, easy transaction processing, digital wallets, the automated repetitive process, digital asset support services, zero-knowledge proof, smart contacts, settling transactions within real-time has taken place.
Also, sharing data across multiple stores has become simple and easy. So yes Blockchain is and will be playing a prominent role in the upcoming years of the financial realm.
Last but certainly not the least emerging technology is automation. Much like chatbot and AI, Automation is related to Robotic Process automation. In the digital world, automation is done to get results, they might be simple, monotonous but effective. Right from generating reports to logging data, maintaining logs at regular intervals, basically, all the monotonous tasks are taken care of. Automation is pretty much in demand especially when financial services providers are no longer willing to do all the repetitive processes. For example, they can manage instant payments – all just they have to do is see whether all the aforementioned conditions are met or not.
By incorporating tech such as automation, the financial and banking service industry can save enough money, time and reduce human error and of course, enhance speed to a great extent. And not just for the sake of the banking industry, even customers get relieved when they receive services in a convenient manner.
And this is it! These are the top emerging technologies that have been ruling the financial services industry and will be for a few years down the line. So if you want to survive or gain an edge over your competitors, simply choose any one of these and you are sorted. Digital transformation might seem to be a costly venture in the beginning but it is just used to save money for the long run. Also, financial institutions no longer are required to steer away from their core activities because these emerging technologies will take care of all the rest and low-prioritized aspects for you.
So this is it! In case, if you still have any doubts or queries regarding the use of emerging technologies in the financial service industry, feel free to mention that in the comment section below.