"Longevity in businesses is about being able to reinvent yourself or invent the future." – Satya Nadella
Digital Transformation is a popular buzz word in today's world. The digital economy's backing is crucial to thriving in this competitive world. It digitizes business operations, improves production capabilities, improves resource management and employee efficiency, and empowers your staff to focus on productive tasks. It also enhances the customer experience by getting deeper behavioral insights and introduces an additional level of transparency.
Financial technology, or FinTech, consists of all the modern technology that banks and financial businesses employ to improve the delivery of financial services. It includes all services from the use of ATMs and electronic cards to digital banks and blockchain technology. FinTech has transformed the finance sector by using automation and machine learning techniques to elevate the customer experience. Future FinTech money-makers include the use of automated chatbots that are available 24*7, online budgeting tools to regulate money spending, and spending tracker to monitor funds.
At every level, incorporating automation technology and machine learning addresses all pain points in financial business operations. Fintech focuses on fixing operational issues like budgeting and customer service. Unusual financial activities that usually elicited a phone call from a bank representative can now use robocalls to verify purchases. Though this tactic is controversial, we cannot doubt how useful it will be.
FinTech will no longer have an ephemeral presence in the future of the financial industry. All financial institutions are moving forward and openly embracing FinTech and view it as an amazing investment.
In the period 2019-2025, reliable projections state that FinTech will grow by about 25 to 30 percent.
Artificial intelligence (AI) plays an important role in detecting and forecasting the possibilities of fraud. Several credit card companies and financial lending institutions use these services to perform background checks and be risk-averse. This valuable technology also helps banks fulfill compliance regulations effectively.
AI undeniably reduces cybercrime by protecting mobile banking, login credentials, and much more. Sophisticated AI prevents losses by cybercrime that amounted to a whopping $600 billion in 2016. Apart from detecting financial frauds and preventing cybercrime, AI also improves customer experience by providing valuable insights into customer behavior as a guide for all businesses.
If you're still not convinced, here are data points that will make the case for you: -
Disruptive technologies transform markets and generate innovative industry verticals. Recent technology examples of market transformation and disruption include services like PayPal, ApplePay, or Google Pay. Customer's shift from tedious traditional banking procedures to convenient digital banking services is quite evident.
Following the suit, providers such as Kabbage and Stripe target small businesses by providing valuable services. Kabbage offers lending services to small business owners via an automated lending platform. However, Stripe delivers high-quality online payment processing capabilities to small business owners making them more competitive in the marketplace. People love these FinTech disruptors because they are convenient and bypass lengthy, tedious procedures.
Furthermore, Statista.com states that IoT will be an $11.1 trillion market by 2025. Disruptive technology truly marks the coming years with bright and positive colors.
Often linked with cryptocurrencies, Blockchain technologies offer numerous possibilities in other sectors as well. In fact, IBM's CEO sees immense potential in Blockchain and says it would transform the world if adopted widely. Its ledger system functionality uses strict controls to audit data and enables smart contracts. It also ends up building user's trust by heightening transparency and reducing human error and risk. That's why the stock exchanges, AI firms, and other financial institutions are actively pursuing this technology.
A few Blockchain-centric businesses raised over a whopping $240 million venture capital in the first half of 2017. Furthermore, this investment keeps growing every year from 2017. Blockchain and its allied technologies have the power to grow and impact several financial services going forward.
"Change is inevitable—except a vending machine." —Robert C Gallagher
It's especially true in technology and business. In this ruthless world, if you don't adopt, you perish. We understand change can be difficult but that doesn't excuse you from staying where you are. In fact, progression is an optimistic sign of success. We urge you to keep track of all trends in finance sectors and try staying ahead of the curve. Being receptive and accepting of these trend changes will give you a unique advantage.
Leverage the power of trending technology tactics to grow your financial business today!