Thanks to advancements in technology, the financial services industry have witnessed numerous transformations over the years. Traditional financial institutions have embraced innovations such as voice tech banking, mobile payment solutions, virtual reality (VR), augmented reality (AR), artificial intelligence (AI), and distributed ledger technology (DLT). Regardless, the industry is expected to implement more sophisticated processes and fintech that will further improve services and customer experience.
According to recent research, new fintech investments are set to skyrocket in 2020 and beyond. Investments in the industry are predicted to exceed $30 billion. This only means that more advanced technologies are expected to disrupt banking and financial services and bring unprecedented changes to the industry. In this post, we will be taking a look at some upcoming finance technologies to anticipate in 2020 and beyond.
Artificial Intelligence (AI) and Predictive Analysis
For some time now, banks and other financial institutions have used artificial intelligence to determine who is able to repay loans. However, the role of AI in finance is set to expand further. With AI, chatbots will be able to provide informed financial advice and guide customers to make the right investments. AI will also help detect fraudulent transactions or theft. Through artificial intelligence, banking and financial services can provide more personalized services to customers and mitigate security issues.
Big Data Analytics
Currently, the banking industry is one of the biggest investors in big data analytics. According to the IDC Semiannual Big Data and Analytics Spending Guide, banking and financial service providers are willing to spend more on business analytics solutions. Big Data will continue to help banks and financial services derive insights and gain vital knowledge about customer behavior, credit scores, credit card transactions, ATM withdrawals, and more. With such valuable customer information, banks and financial services can provide custom-tailored services to each customer.
Robotic Process Automation (RPA)
Another upcoming finance technology that is set to disrupt the sector is Robotic Process Automation (RPA). RPA software and solutions are programmed to enable virtual assistants and robots to complete repetitive and labor-intensive tasks quickly and accurately without human intervention. RPA software through chatbots will also handle low-priority queries from customers. With this, financial institutions can save operational costs, labor, and minimize errors.
Furthermore, cloud computing technology will make it easier for banks and financial institutions to store data and provide computing services through the internet. Cloud computing ensures that banks are able to provide 24/7, round-the-clock customer service from anywhere possible. The technology will also make it easier for these financial institutions to upscale their services quickly. Also, instead of investing in expensive hardware infrastructures, financial institutions can simply pay a cloud provider. With cloud computing, banks and financial institutions can now save costs, improve service delivery, and minimize downtime.
There you have it! Above are some upcoming finance technologies that are expected to bring unprecedented changes to the industry. Many banks and financial institutions continue to adopt newer technologies to enhance operations, improve customer service, and security. With fintech, financial institutions can implement technology in their operations and gain a competitive advantage over other players in the industry.