The FinTech sector has experienced immense development in the implementation of complete digital financial products and services with the increase in demand for innovation and technology that offers a personalized banking experience.
FinTech is a blend of technology and finances, a harmonic combination of two enormous industries into one field. The impact was immense. Fintech solutions were recognized as the cutting-edge innovation five years ago and now it is a daily reality. FinTech protrudes to seeking the adoption and using technology to its maximum advantage in a customer-centric approach. This is the one reason that financial institutions want to form an association with Fintech to speed up their commercial efforts to corner the market.
Here is a list of the top five technologies that will revolutionize the industry:
Regulatory Technology manages the regulatory process within the financial industry that includes regulatory monitoring, reporting, and compliance. It got benefits from recent ground-breaking FinTech software innovations. The easiest way to adapt a financial institution to a legal requirement is to keep track of new restrictions in a single database.
Benefits of RegTech
- Connect and protect the interest of consumers, financial institutions, and consumers.
- Fast compliance of pre-and post-trade.
- Control of vast data quantities is easy, affordable, and fast.
- The accurate automated search of regulation.
Machine Learning and IoT
Unsurprisingly, IoT devices with AI have the unconventional potential for every industry, including FinTech. The Combine effect of machine learning and the IoT is completely changing the finance and banking sectors.
Machine learning is widely used in the following areas of banking:
Risk Management: Software examines the performance of the company and recognizes possible threatening patterns.
Customer services: The platform builds a smart client profile and analyzes customer data.
Fraud prevention: Machine learning evaluates current fraudulent cases and detects usual patterns and assesses if a business doesn’t display similar behavior. This allows banks to predict possible frauds and questionable financial intuition. IoT networks can connect smartphones to a financial database and send data directly from one device to another. Internet of things also accelerates the internal and external financial process. The progress of FinTech IoT can be seen so far in retail banking. An example of IoT innovation is the beacon-based solution of Citi bank that unlocks ATM entrance with smartphone during the odd time.
Blockchain has been in the news since 2018. It has proved to provide a transparent, reliable, secure, and completely automated solution. The banking sector has been using Blockchain for digital payments, trade settlements, smart contracts, etc. Numerous Asian banks have adopted Blockchain and American and European institutions are expected to follow the trend. Blockchain would improve and change the way of the process of financial operations. Blockchain has played a vital role in making credit scores more consistent, transparent, and globally logical.
Robotic Process Automation
The business management solutions can apply Robotic process automation to reduce the number of human resources. Graphical User Interface is used by the RPA to complete the task. The work done by RPA ranges from selecting items, sending emails to creating a report, and organizing a database.
The most common RPA procedures are:
- Obtain summaries from large documents.
- Manage emails and attachments.
- Accumulate statistics.
- Control regulatory documentation.
Conversation banking merges automation, intelligence, and natural language processing with chatbot interface and digital banking. In other words, it is a visual engagement tool or voice text messaging of digital banking. It allows a consumer to chat directly with the bank. It also gives banks gain ease of compliance, cost efficiency, and collect intelligence for better analytics. The name of technology itself means smart interaction with a client and it is not limited to text and voice chat. The objective is to understand customer requirements and offer the best possible solution. An example of conversational banking is Chatbot developed by the bank of America called Erica. It sends text and voice messages and gives answers with text replies and voice messages.
Every passing year FinTech transforms in a new way. With the ever-changing demands and growth of technology, the changes are inescapable. The success of companies is determined by the way these trends are incorporated into a business. Bank enterprises need a tech expert and massive investment to work on all these technologies, that is why implementing several innovations into regular operations can give you the desired results.