There are credible pointers (and arguable banters) that people have developed a great liking towards Fintech out of their leaning, as they look for financial sophistication especially in today’s pandemic stricken world. Clearly, as a result of such a sentiment, there has been a considerable investment this field has attracted and which is geared towards structural refinement in financial services at length. In fact experts don’t hesitate to believe that by the end of 2020, there will be a gross investment of around $25 billion dollars, since most of the consumers rely upon electronic mode of payment and prefer to indulge in safe, secured banking services, simply to avoid public gathering and to avert any chance of infection.
As such, heavy capital influx is likely to unlock a supreme scenario, marked by an even hefty bundle of services, which will be cost-effective and refined in its original form, as are offered by leading financial institutions and banks, which also turns out to be the need of the scenario, given the pandemic-stricken world of today.
Below, we have out-lined an account of a handful of fintech trends, which masses are anxiously waiting to know-about, by holding their breaths, since such are rightly considered to be the instruments of change in financial transactions across the globe.
- Big Data And AI (Artificial Intelligence) Lead From The Front:
Arguably, enormous amount of efforts are underway with a huge investment over the years to simply restructure financial service framework which centre-around services tailored to individual needs and preferences (i.e. personalized banking services). The bottomline is to attract customers and to retain them onto our side. Truly, bringing hope and delight, Big data and AI have emerged as the core technologies that everyone looks upto, as large amount of data is stored, insights are drawn on customer behaviour and spending and saving and relevant plans and policies are made soaked in abounding personalisation. Further, social media channels coupled with banking history, are highly useful for banks and financial institutions, thereby.
- Robots Are Called Into Action:
Robotic Process Automation (RPA) has undeniably been the most amazing addition with the banks processing of financial records, and as a result of which, aspects like workforce efficiency and productivity and completion of tasks within allotted time frame have been brought into the banking industry, with a bang. Moreover, such RPAs are not supposed to be typically programmed to accomplish given set of tasks, but such just monitor activities of workforce and start functioning in similar way, even in better way, as usual follies are detected by such robots.
Processes which are repetitive like intake of new customers, verifying their details, assessing risks, carrying out security checks, analysing data and providing reports, compliance assessment etc. can easily be performed through robots, including other activities of management and admin.
3). Interface For Discourse:
Garnter harbours high regards for such a classy automation which is now inbred in communication channels, as we see chatbots have made their way in customers’ interaction from banks and financial institutions. Besides, with minimal human involvement as automation takes charge, customers’ interaction and processing is done more quickly than otherwise. There is sufficient evidence that when financial chatbots are pressed into service, around 5 minutes are saved against every financial deal. Credit goes to supreme digital framework comprising natural language processing and speech creation as per demand. Now, calls to financial institutions are directed and dealt through conversational interfaces because of which, queries are responded to, in a jiff and then, complaint management has become pretty manageable too. Further, such a framework remains accessible 24×7, enabling customers to access the system and get quick solutions to their queries at any preferred time.
Finally, such is considered to be the most cost-effective measure before banks and other institutions dealing in finance and has taken personal banking to new level.
4). In Financial Sector, Blockchain Proves Its Worth:
This is basically a digital ledger which remains activated 24×7 with control and management shared across the globe and such is widely hailed as for having transformed financial service sector completely in terms of higher degree of efficiency and productivity. Clearly, the technology bears the promise to safeguard banking records and services against any sinister attempts, else banks lose a huge sum of money because of such shrewd designs otherwise.
In US alone, blockchain reliance in Fintech industry is forecast to fall around $6700 million by the time year 2023 arrives. Sans doubt, for a wide spectrum purpose, blockchain is utilized such as for ensuring smart contracts, digital payment, to establish clients’ identity, to enable trade in shares, for swift and reliable account management, while efforts are still underway to unlock its hidden potential in other related areas as well.
5). Sophistication In Mobile Payments:
In this field, one of the striking aspects lies in the rapid expansion of payments made and received on mobile phones. Everyone among us emphasize upon quick and easy payments that are soaked in IIF aspect (instant, invisible and free) and with ubiquitous mobile phones flaunted commonly, technology has made this possible too.
Not surprisingly, our wallets and real time cash is fast disappearing as mobile payments are fast gaining ground. Now, to push for the objective by crafting technological ways, even Google, Alibaba, Tencent, and Apple have moved ahead in the direction and have put up their own platforms, replete with novel security features like access and control through biometric way, gaining access through fingerprint, faces are recognized easily as sufficient programming is there. In same context, even WeChat Pay has emerged as the most popular medium of payment in China, which is currently being utilized by millions of people across China. Besides, Alipay, which is Alibaba’s widely used platform meant for mobile payment has won the distinction of being largest mobile payment platform on the planet. However, many other platforms of similar instincts have currently been under development, which are in initial stages of uses.
Clearly, scores of financial institutions are getting acclimatized to the changing digital environment under which banks and financial institutions function to simply refine their operations and to secure customer satisfaction and the aforementioned trends are bound to uncover grand avenues for us to venture into. It is widely known fact that financial institutions have to pick up pace with ever evolving Fintech to draw towering competitive benefit.