The 20th century was known as the century where each decade brought in a new kind of invention. It was during that very century that computers became mainstream and led to the evolutionary mobile technologies we are running our daily lives upon.
Technological disruptions over the past few years have changed human lives; the way they talk, communicate, transact and carry out business. Emerging technologies in the financial services industry have disrupted the way people interact with their money.
Now comes a question of what to expect from financial companies and service providers, and how these companies are working today to help consumers be at the focal point of their transactions. These days, new technologies make each process easy, much more efficient, reducing errors, improving communications and changing the way consumers observe their money and utilizing it too.
The trends in emerging technologies in the financial services industry
Professionals and consumers are expecting these trends in emerging technologies for financial services to become mainstream. They also expect them to be part of the technology stack, which hence gives rise to newer app ideas for banks and other financial service providers.
Digital experience platforms improving the banking sector
These experience platforms are old. They started with internet banking. However, modern technologies have given financial institutions a way to revolutionize the customer experience. Cloud solutions have given customers the needed privacy, and top-notch accessibility. This in turn allows for real-time intelligent data integration, real time digitization, personalization and improved analytics.
One of the most important changes taking place here is the addition of Application Programming Interface (API) platforms. Customers here can integrate their banking data into other related apps to streamline transactions and payments.
Blockchain has transformed the world of finance as people know it but its adoption rate is not that high. Blockchain supports bitcoin and other crypto currencies, with major banks like JP Morgan Chase, Goldman Sachs, Wells Fargo and others joining the club and creating more opportunities for users to utilize blockchain.
Accenture estimates that investment banks can save up to USD$ 10 billion by clearing and settling processes to blockchain.
Blockchain is yet to be readily accessible despite being an emerging trend. Some firms are developing a broader range of solutions but a lot of them which are implementing blockchain are doing it on their own.
They facilitate cheque processing, cash processing, trade finance, personal banking and others to make sure the process is smooth and each customer understands it. Moreover, professionals from an app development company Toronto are working on making banking apps utilizing blockchain.
Artificial intelligence and chatbots – beyond customer service
Chatbots are a part of artificial intelligence solutions. They are becoming popular amongst various financial institutions, with everyone from large-scale banks to tiny credit unions utilizing them. These technologies are helping them in their digital transformation.
Chatbots are more publicly visible versions of artificial intelligence. Back-office products of AI, especially back-office operations, product delivery, marketing, sales, risk management along with security are now testing AI to make sure each of these operations runs smoothly.
These emerging technologies in the financial services industry are very much available for smaller banks as well. Processes like data analysis, data sharing, documentation, customer communication and vice versa are being automated on AI platforms using easy to understand algorithms that require minimal human intervention.
The challenge here is delivering consistent quality in external processes. In this regard, some companies have fallen short. Numerous organizations face issues related to data set silos, regulatory compliance etc. They also fear AI probably getting hacked and put into wrong use remotely.
Utilizing robotic process automation in financial services
Robotic Process Automation (RPA) basically automates redundant processes and repetitive tasks. Automation is different in comparison to AI because it uses a simple series of rules for making outcomes that are simple yet reliable.
RPA has pre-programmed rules, and are able to cover both structured and structured data. Their purpose is proper management of digitization, approval, flagging risks and the like.
A lot of firms have also integrated learning patterns so they can improve understanding of rising volumes of data over time. This in turn can help process banking data efficiently and without errors.