In the last few years, we have noticed some technological disruptions that have changed how we communicate or do business. And because of the way technology is emerging the financial services industry has consistently disrupted. It has changed the way users interact with their money, what they expect from financial institutions, and how those organizations operate. Nowadays, new technologies make each and every process of fintech services easier, more efficient, improve communication, and reduce errors. And none other than financial institutions benefit from these technologies. They can have chatbots and automation, improve profitability, and reduce man-hours. In this blog, we will learn more about it and see which technologies can help fintech services grow more than ever before.
When you hear the word automation, it clearly means the usage of Robotic Process Automation to make the fintech technology advanced than ever before. With the use of automation, the Fintech developers can automatically fix the process. Automation is a technology that uses a simpler series of rules that enables the creation of relatively simple and reliable results. These are the pre-programmed methods that can enable developers to encompass the structured or unstructured data that can handle digitization. With the use of automation, there are many patterns that can be integrated to improve over time based on the ever-growing value of the data. Besides this, Robotic Process Automation is something that can generate reports, automates repeatable processes, log data, maintain logs, and more.
2. Cyber Security
The issue of cybersecurity is very common for any business or enterprise in the digital era. But it becomes more important when we are talking about the financial service providers or banks as they have to build and maintain a high level of client’s trust, by assuring them that their financial and personal data is safe. Therefore, fintech development companies now use new systems like multi-factor authentication to ensure the security of client’s important data. This is mostly used to secure the transactions that happen with the use of a credit or debit card.
3. Blockchain for Banking
Blockchain is another emerging financial services technology. It is transforming fintech into the highest level of the secured industry. With the use of blockchain, techies have been able to handle Bitcoin and cryptocurrency. This technology has been used by top banks like JP Morgan Chase. With the capabilities that this technology has, it has been widely regarded as one of the biggest opportunities for baking services. For instance, Accenture has estimated that investment banking could save $10 billion by using blockchain technology to clear and settle the processes. But saying that, there is one issue with blockchain, that it is not readily accessible, yet. Therefore, some of the greatest organizations in the world are developing wider solutions that can help in carrying out banking solutions with the use of blockchain technology. And the rapid adoption of blockchain technology has enabled us to carry forward the solution for fraud reduction, payments, smart contracts, loan processing, and more.
4. Chatbots and Artificial Intelligence
Chatbots and other AI solutions have become the most crucial part of the digital transformation in the banking industry. With the help of chatbots, fintech developers have made it possible for financial service providers to be more publicly visible. This AI technique impacts back-office, risk management, product delivery, marketing, and security. To make chatbots work efficiently, machines use simple algorithms to complete every task from data entry to risk evaluation. This technology is readily available for banks of all sizes. It is the best tool to automate specific processes like documentation, customer communication, data sharing, and data analysis.
Artificial Intelligence is a technology that plays an important role in security, cyber-security, risk mitigation, and other financial wellness approaches. It helps in real-time monitoring and analyzing the cyber-security threats and also creates instant alerts when something is flagged. This technology enables the developers to get faster responses and reduces the risk of breaches in fintech applications.
5. Digital Experience Software
Digital experience platforms are nothing but the modern technologies that enable fintech developers to revolutionize a relatively new fintech technology. For instance, hybrid cloud solutions provide both accessibility and privacy to consumers. Hybrid platforms also enable real-time intelligent data integration, like personalization, real-time digitization, and advanced analytics. In these changes, one of the most important things is the addition of API platforms, that enable the customers to integrate their banking data into other mobile applications. There are many financial institutions in the world that have fought API, but this means that they will have to follow the regulation in the EU forcing organizations that offer open API. Basically, it means having an open banking system that comes with numerous advantages to consumers, such as using money management tools and sharing data to third-party financial apps. This allows small financial companies to have third-party amenities that they cannot afford at their organization.
Conclusion
As seen in this blog, there are many emerging technologies in the world that can entirely change the working system of the fintech industry. These technologies can be chatbots, blockchain solutions, experience portals, or more. They are becoming more and more accessible to banks of all sizes. Fintech app development companies can make use of digital experience platforms to develop solutions for financial institutions and allow them to modify applications, chatbots, and other AI solutions. This clearly proves that emerging technologies are the present and the future of financial institutions. Therefore, the right research, exploration, and usage of these technologies can help the developers in shaping unique software for the fintech industry.
