Articles

5 Trends That Are Disrupting FinTech

by Emma L. Business consultant

The financial services sector has traditionally been a conservative one, lacking the trend-capturing qualities of the tech world. However, in recent years, there is no doubt that the financial services sector has become a place full of significant technology changes. This is by now all too apparent, especially with the injection of blockchain technology into the mainstream consciousness. 

Many other fin-tech applications that have remained outside the spotlight are also experiencing an increased adoption rate and will solidify the notion that fintech is here to stay.




Banks with multi-channel experience

Gone are the days when your only contact with a bank was going inside one. Today, banks have begun to provide multi-channel experiences to customers that go beyond phone calling and visits to branches. A customer can now engage with a bank through multiple channels such as website, apps, smart speakers, digital voice assistants, social media platforms, etc.

Although, in order to ensure a high-quality customer journey, banks will have to provide seamless consistency across all of the above channels. Besides there, for banks to be able to go further, they will need to include:

  • Virtual Reality

  • Augmented Reality

  • And more to remain competitive


Open Banking solutions

Financial service organizations are starting to see the value of Open Banking initiatives and the importance of the role of APIs. Traditional banks understand that to better compete in the industry, they will need to develop their digital capabilities to avoid being out-competed by new firms with superior offerings and services.

Open Banking solutions increase the appeal of a bank and enable them to meet the changing demands of current clients as well as appeal to prospective consumers. These APIs can also act as an original way to increase customer engagement and attend to client needs in an agile, secure, and future-proof system. This engagement is fundamental, particularly as upstarts and new entrants continue to disrupt the financial services niche and more offerings, services, and devices enter the market.


Robotic process automation and artificial intelligence 

A surge in connected devices and methods to process the data are driving the development of personalized insurance products based on a person’s data sets. Regulatory technology has recently experienced the infusion of anti-money laundering programs and know your customer (KYC) with AI.

These solutions, besides dealing with risk management, compliance, regulatory reporting, and transaction monitoring, will continue to upgrade as more and more is invested in their building and adaptation.

Robotic process automation software automates repetitive human tasks by using the exact same app interface a human would, removing inherent human inefficiencies. For instance, a robot could complete data entry tasks using Microsoft Excel and the company' CRM software. The robot can then use the same app to complete the task but would finish much more swiftly, since its speed is limited only by the speed of different apps it would use.



Inter-connected cloud solutions

As banks are turning to a combination of private, public, and hybrid clouds for their infrastructure, cloud-based banking is becoming a common thing in the fintech world. Although no bank would ever move all its sensitive data to the cloud because of security risks and compliance, a new-found balance is determining the selection between different cloud formats. 

As important as the shift towards cloud-based computing has been, it is only getting started. Many financial service providers and banks are selecting financial accounting along with "point solutions" for security analytics and KYC verification. However, this year, some core services of banks will also move to the cloud and this will involve remittances, payments, account billing, credit scoring, and more.


The real-estate industry and smart contracts

A smart contract could possibly catalyze the development and improve the efficiency of the real-estate niche. 20% of real estate transactions will be completed using smart contracts by 2020. The real-estate sector is full of inefficiencies. The big parts of the industry – title companies among some – will be greatly reduced and potentially removed by the implementation of blockchain-based smart contracts.

 They eliminate the need for intermediaries, which clutters up the real estate sector and slow down every transaction. Right after the completion of a desired and agreed upon task, the contract gives the agreed-upon amount of capital to the party which has completed the task. The contract, being based on the blockchain technology, then builds an immutable transaction record, which benefits the anti-money laundering efforts and ensures the legitimacy of transactions that are listed on it. 


The only thing that is certain is that as more and more technologies disrupt the fintech sector, only those that “shake the tree” in the right way will have their baskets full of fruit. 


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About Emma L. Advanced Pro  Business consultant

3 connections, 0 recommendations, 158 honor points.
Joined APSense since, February 18th, 2016, From Sydney, Australia.

Created on Aug 8th 2019 15:06. Viewed 301 times.

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