Long gone are the days of weekly drives to the bank to check balances, deposit checks, or transfer money. Sure, we may still occasionally make the trip, but now, most banking solutions are just a few clicks away. The financial service industry has fully embraced digital technology and is always looking for ways to improve customer experience and security.
Here are six of the most relevant technology trends in the financial services industry.
Cloud solutions continue their meteoric rise. Using the cloud, data can be stored and provided on-demand. This helps financial companies keep up with their customers’ needs around the clock. The proliferation of smart devices has also changed the game for money and banking. More and more customers are becoming tech savvy and turning towards digital wallets, mobile banking, and online money transactions in lieu of traditional physical options. The cloud has been pivotal in making this possible.
Artificial Intelligence (AI)
AI has found its way into nearly every industry, and the financial service industry is no exception. Thanks to its combination of advanced computing and mimicked human cognition, AI is appearing in financial services in the form of fraud detection, budget analysis, and chatbots providing financial or investment advice (just to name a few). As it becomes further integrated into daily operations, the industry expects it to drastically improve the customer banking experience.
Data about credit card usage can be collected to develop better insights on customer behavior, needs, and potential fraud risks. As the sheer amount of data continues to expand, new tools are developed to analyze an ever growing, interconnected network of information. For financial firms, advanced analytics are essential for making informed business decisions and customer insights.
Robotic Process Automation (RPA)
Ever used a chatbot on your bank’s website? If so, you might have encountered RPA. Banks are beginning to use this technology in chatbots to answer low-priority FAQs, freeing up customer service teams for more serious or urgent queries. And this is only the beginning for RPA. While it may seem simple to the end-user, RPA can save labor, reduce costs, and minimize errors for a company, while offering customers a smoother and more immediate experience. It may have potential merits in credit card and mortgage application processes as well.
Blockchain technology has been used for some time in the cryptocurrency sphere. Given that its main advantage is security, it’s unsurprising that the financial service industry is now utilizing it. When money is transferred, multiple points of verification are installed to record every step as money moves from point A to B. Blockchain also reduces costs by using decentralized networks rather than middlemen. For those transferring large amounts of money, this technology is particularly useful.
Cybersecurity has been a hot topic in many industries, especially as we took our work, banking, and shopping online in response to COVID-19. It’s an especially important priority for the financial industry, which deals with sensitive personal and financial data. To keep their promises of security, many companies have invested in and implemented OAuth2.0 and APIs (Application Programming Interfaces) to protect customers from cyberattacks.
Conclusion: Technology Trends in Financial Services
The impact of technology on the financial services industry will continue to be felt, as companies continually work to improve customer experience and security. We may not know what’s coming next, but we’re sure it will be exciting!
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