The financial industry is famous for being traditional in many aspects, but they are slowly introducing new technologies to their processes. These trends utilize financial technology (fintech) and affect customer service, risk management, and real-time assessments for years to come. The best part about fintech is the use of artificial intelligence (AI) and blockchain, which are still in their early stages. The potential for their use is promising.
Blockchain is a tech trend that has impacted the financial industry the most in recent years.
Blockchain is the technology behind cryptocurrency, but it has many more applications besides that. It has become so popular because it makes transactions secure, transparent, and decentralized. But because transactions are decentralized, they no longer need a third party like a bank to participate in the transaction. Regardless, the banking sector can adopt this tech trend to make their systems more efficient and secure. For example, things like smart contracts that can fulfill themselves automatically when certain conditions are met will change the way we exchange money. Blockchain can also reduce the costs of operation for many financial companies.
One of the primary applications of AI and Machine Learning in the financial industry is the improvement of customer service through the use of chatbots. They automatically respond to simple queries any customer can have. Some robots can act as financial advisors in some cases. Similar trends in automation can be seen in all sectors. Robots are helping assembly lines create products for customers. This tech trend of using AI is also used to improve the security system in financial institutions. AI is used to predict attacks and prevent fraud. AI algorithms are already used to train models that can detect suspicious activities in bank accounts, make risk management analysis, user behavior, and so on. It is also behind big data analytics, voice interfaces, and robotic process automation.
Big data has changed how industries see and manage information. In the financial sector, data is used in everyday transactions, credit card buys, atm withdrawals, loans, and much more. With big data analytics, transaction information isn’t going to waste anymore. Financial institutions can have powerful insights through the use of data that help them make important decisions like whether or not to invest. These insights can save millions of dollars to many companies through the use of real-time risk analysis and fraud detection and prevention. It can also help improve their company performance and increase departments’ productivity.
Voice interfaces are changing a lot of aspects of our daily lives. Voice assistants, like Amazon’s Alexa and Apple’s Siri, are advanced technology that we see as standard nowadays. These are changes that are also being utilized to improve the financial industry. Companies and institutions like banks are reworking their platforms to adopt voice recognition software. Checking your bank account can be as simple as to say, “Alexa, what’s my bank account balance?” Chatbots are part of this tech trend. They can interact with these virtual assistants to give accurate answers in seconds. And, banks aren’t the only ones implementing this tech as chatbots can also provide quick financial advice like mentioned before.
These tech trends have already made changes in the financial industry. Blockchain, AI, voice interfaces, and big data make it possible to improve aspects like performance and lower costs. The application of these technologies will save the financial industry millions of dollars, and investing in them could determine their future standing.