Within the past three decades, disruptions in technology have changed the way the world has been talking and communicating. In fact, the way transactions and purchases have been considered especially in the financial services and banking industry have also evolved. The way people interact with money has changed too.
Newer technologies are to be credited towards making these processes quite easy, efficient, effective and free of errors. They have helped change the way consumers watch and work with their money.
Financial institutions are getting the main benefit from these technologies. Chatbots and automation are just the tip of the surface. We will now check the whole deal.
Trends and technologies emerging in the financial services industry – what are they?
Let us now look at the trends and technologies which are emerging in the financial services industry and fintech industry as well:
Digital experience platforms are becoming popular
These platforms are nothing new. Yet, modern technologies have given financial institutions a way to bring a revolution i.e. add new technology in financial services. Hybrid cloud solutions for instance (i.e. both physical and cloud servers) help give customers and consumers alike accessibility and privacy in accessing their accounts.
Hybrid platforms have helped with seamless data integration and real-time digitization. They have even allowed personalization of services. Advanced analytics have helped define preferences on a whole new level.
Key changes have been made through the addition of Application Programming Interface (API) platforms. This has helped customers integrate their banking data into other apps and services for seamless payments and transactions.
THough numerous banks staved off APIs. but with the regulatory laws and frameworks added into the mix, organizations now have to add APIs with state bodies being moderators to prevent any untoward incidents.
Blockchain is helping
Professionals from a Dubai based mobile app development company explain that blockchain is an emerging technological trend especially in financial technologies and services. It has helped change the world of finance as people know. Yet it has a low adoption rate.
Blockchain is the technology behind cryptocurrencies like BitCoin and other advanced financial technologies. Major financial institutions and banking corporations like CitiGroup, Wells Fargo, And JP Morgan Chase use the tech. For banks these days, it is known to be one of the largest investment opportunities.
Chatbots supported by AI is helping improve customer service
Chatbots are a part of artificial intelligence solutions. They are now a part of banking’s digital transformation. A lot of financial services have been using chatbots supported by artificial intelligence (AI) to help customers get what they need.
In the back office, especially in back office operations, product delivery, marketing, sales, risk management along with treasury and security; AI based chatbots have helped internal communications become more streamlined.
The secret behind all this lies in how machines make use of simple algorithms to complete everything. That everything includes a wide range of tasks ranging from data entry to risk evaluation, processing applications pertaining to loans, accounts and alternate delivery products, along with clearing up numerous redundant tasks.
These technologies are not just for the large banks but also for the small and medium sized ones too. They help equip them with the needed tools to automate certain processes like data analysis, data sharing, documentation, communication etc.
However, the problem with chatbots is that they may not be able to produce the needed level and quality of communication. It would be wise for banks to deploy human chat representatives in such tasks.
The role robotic process automation work in banking & financial services
Robotic process automation (RPA) is a set of tools which makes use of automation in a wide variety of ways. It helps reduce the time spent in redundant processes. Automation differs from AI because it uses a simple series of rules to create simple and effective results.
Such pre-programmed rules and instructions cover structured data (like data coming from interest charts or treasury rates) or unstructured data for managing digitization, approval, flagging for errors, anomalies & risks, application processing, removal of redundant elements and vice versa.
Robotic process automation also handles tasks like account opening, application processing for cards, loans, internet facilities, along with filing complaints and grievances through electronic means. The process automation element ensures each thing is nicely processed.