Technology has revolutionized every industry and with
everything digitalised, the day-to-day business interactions have become more
streamlined. The financial sector too has vastly accrued from this. Whether
it’s retail, mobile banking or neobank startups, the FinTech Landscape is
evolving at an exponential rate.
Radically transformed banking models are emerging. The
emphasis of the FinTech industry is to make processes more customer-centric.
The landscape is becoming more collaborative and competitive. While the current
coronavirus outbreak has impacted the whole world and made each individual
socially distant, a multi-channel presence is getting more precedence to
facilitate transactional operations. Examples include Mobile banking, Net
banking, Point of Sales, digital wallets, cardless ATMs, etc.
There are over 3.5 billion smartphone users worldwide and
financial transactions have become simpler, quicker, more direct. You can be
anywhere, anytime and with the help of the internet, you can simply pay/receive
transactions online with the help of mobile apps. Application-based means are
much faster than its web counterparts and that’s why mobile-friendly solutions
have a better market value.
FinTech is at every industry’s disposal to make
transactional operations easier among parties. Such methods are completely
transparent. It has led to newer concepts like Regtech (reducing fraudulent
activities) and Grandtech (FinTech for elderly persons).
But what are the key technologies that are helping the
FinTech sector become all-encompassing and all-pervasive for businesses in the
future? Let us have a look.
Artificial Intelligence
In technology’s recent history, nothing has left better
footprints like Artificial Intelligence. The booming growth of structured and
unstructured data among financial apps are plenty in number. Some key benefits
include accurate decision making, reduction in downtime, threat detection and
management, automated customer support, insurance management and predictive
analysis to name a few. More and more financial apps are utilising AI
technology to gain efficiency. AI is further enhanced by sub-technologies like
Machine Learning, IoT and Big Data Analytics.
Cloud and IoT
Financial institutions are constantly looking for ways to
access data quickly and without gathering any moss. This can be done through
cloud computing. Cloud Technology offers unlimited storage space and
unprecedented computing capabilities. Cloud will help in many ways including
speeding up client servicing, enhancing the scope of scalability and
flexibility, improving efficiency, reducing costs, strengthening relationships
with clients and in achieving global compliance.
FinTech and IoT integration will vastly improve data
collection and processing. IoT, which is powered by AI, helps in understanding
consumer behaviour and preferences. It will provide immediate support, indoor
navigation, queue management, etc.
Together IoT and Cloud make a comprehensive pair. A
Financial app owner will hire an app developer hereupon who specializes in
Cloud and IoT.
AR and VR
Artificial intelligence, isometric AI robot on mobile phone
screen; image by Fullvector, via Freepik.com.
Artificial intelligence, isometric AI robot on mobile phone
screen; image by Fullvector, via Freepik.com.
Augmented Reality and Virtual Reality have permeated into
every other industry with roaring success, thus banks and financial
institutions too can have an oceanic change with the technologies. Experts have
deduced that AR and VR can enable bank customers to have autonomy over at-home
banking. General financial data can be remoulded into stunning visual
experiences making the entire process more personalized for the customers.
Swissqoute, which is a Swiss banking group, came up with a VR app that provides
users with a 360° trading wall using a VR helmet to observe markets and engage
in trades.
Cardless ATMs
Cardless ATMs have already started making their mark as a
faster and safer means of cash withdrawals. Smartphones come pre-loaded with
security aspects like biometric authentication and two-step verification, which
makes cardless withdrawals tauter. A simple illustration can be that you
leave/forget your ATM card at home and an ill-fated thing strikes — your phone
gets stolen. Now the marauder has to pass through multiple security checks to
acquire access to your ATM, instead of finding the PIN.
To implement this feature banks have come up with a number
of ways. One is instant code generation through an app on your phone that needs
to be entered along with the PIN, another technique includes the use of phone
cameras and beacons.
Blockchain
Blockchain is more than just the technology that gave rise
to cryptocurrencies; it’s a technology that improves efficiency, curbs excess
expenditure and provides robust security for financial services. It’s one of
the biggest and the most unique disruptive technologies to exist. Financial
institutions, although few in number, have initiated testing of blockchain
technology for bank-to-bank transfers, payments, threat detection and
reduction, KYC, loan processing, etc. Blockchain facilitates smoother trade in
financial applications which helps in trust-building. Some common services you
can expect in the future include cross-border transactions, trade finance
platforms, clearance and settlements, credit reporting and digital ID
verification.
The evolution of financial and banking apps in the future
will be vastly different from what it is today. Core technologies like the ones
listed above will become mandatory features to mobilise the entire process and
make it more customer-friendly. The coronavirus pandemic was a stepping stone
for everything as it has forced every industry to reconsider its way of
communicating with the masses. Absolute transparency is in demand and also the
objective along with lowering regulatory costs and maintaining compliance. Seamless
development in financial apps with state-of-the-art technology will make your
life easier. It will be your need more than a want.
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