Financial tech or better known as fintech is reshaping the face of financial services for better. As the need of customers has evolved over time, financial organizations are bound to embrace fintech to be ahead of the curve. These technologies are enabling organizations to focus more on their customer-centric services through automated processes and reduced operational costs. From the vast number of technologies, a few are frontiers of change that either have or are evident to reshape the financial sector.
Artificial Intelligence (AI)
Artificial Intelligence is a cutting-edge technology that has found its ground because of predictive analysis and real-time response characteristics. The technology has allowed organizations to unleash the trapped value in their core business. Predicting market risks and customer needs have become convenient allowing financial organizations to cater to customers with low cost and better services. AI plays a major role in improving operational efficiency by automating the mundane with complete accuracy each time. Apart from customers, AI tools have the capability of analyzing huge volume of data like credit scores, and customer probability helping lenders to come to a more conclusive decision driven by data.
Cloud computing technology has attracted the banking sector since its advent. It provides banks and financial credit companies with a blend of traditional IT and public/private cloud that has improved operational efficiency and reduced cost investment. The technology is still growing but many organizations have already hosted their multiple processes on the cloud platforms. CRM is the leading one of them which now has become capable of catering customers beyond professional hours. Although, the cloud has a few drawbacks of criticality, confidentiality, and cyber risk; its advantages have impacted the sector more. Soon the technology is anticipated to be free of its drawbacks as the researches are going on.
Distributed ledger technology is probably something that the financial sector is waiting for long. The blockchain is supposed to facilitate banks with a robust decentralized ledger supported with immutability, encryption, and authentication for higher standards of security. Automatic transaction recording, data immutability, and encryption security make the fintech to gain high value among the industry. Leaders anticipate the blockchain to take over the current trading system as soon as its research and development phase gets completed and revolutionize the workflow.