The Impact of Technology on Financial and Banking SectorBy CIOAdvisor Apac
Humans have this desire to see a need for something and design it immediately to simplify their life. Technology is a vast terminology which includes all the rapid advancements taking place in all the industries; it has advanced our lifestyles. It is changing the way a business operates and deliver its products to its customers.
An industry that has experienced considerable innovations in recent years is the financial world. The buzz around the FinTech phenomenon and its ever-evolving client and corporate focus is seeing more choice and has an improved user experience across the board.
There are vital areas that are incorporating this technology to enhance their customer journey:
• Customer Service
The most effective way through which FinTech is disrupting the financial world is through customer service. Initially, an excellent customer service team was vital for an organization as any financial institution required trained employees to help sort problems and provide assistance to the customers.
However, with the advent of Chatbots, it is gradually replacing the humans. Although it lacks a human touch, it renders the surplus amount of information to its client. Moreover, machines are cost-effective investments.
• Online Banking
Earlier, people would go to the bank to withdraw money or transfer funds; would speak to a staff member and interact there itself. However, with the advancement in technology, Online Banking is becoming more and more preferable. Now we can easily access our banks on phones, computers, and tablets.
• Fraud Detection
The investigation and identification of fraud used to be an equivalent effort from both man and machine. The framework would track potential fraudulent exchanges, yet it would be up to the staff who were prepared to find fraud to glance through all the data and decide whether there was fraudulent activity on the record or not.
But now AI is advancing and can detect the fraud and identify it at a much faster speed than a human ever could. The machine can go through all his past and then predict the likelihood of fraud based on the previous pattern.
The first disruption always stems from progress because the existing machinery and people become obsolete and need to be upgraded or removed.
Technology is a never-ending process, at least till a time where it becomes more efficient than the humans who created them. They are smarter, more intelligent, faster and economically viable. Therefore it is clear that the future of financial services is advancing, and the financial institutions have to buck up with that speed. FinTech can be proven to be an effective way to work.
The most important factor is to maintain a balance between technology and manual intervention because their combined efforts will revolutionize the industry for business and consumers.