In a digitally-oriented era where technology is deeply integrated into various aspects of the economy, many industries are transitioning to cloud-based services as advancements in technology are disrupting the old structure for financial markets and institutions.
The finance industry is not exempt from this global change, as digital transformations like PayPal or ApplePay paved the way for better customer experiences. The recent COVID-19 outbreak has sped up the transition as the national quarantine has put an emphasis on the importance of providing financial services through digital means, giving rise to smart-phone apps.
With that in mind, 2020 will see the following technology-driven changes that are sure to revolutionize the banking sector’s landscape:
FinTech will Lead the Journey
FinTech is leading the new business model as banks and financial institutions are now looking to integrate modern hardware and software to improve their system. FinTech once described the rise of ATM’s in the 1960s, but now, it’s taking the next step by embracing technologies like digital banks, wallets, blockchain technology, and more.
Part of the digital transformation that FinTech is introducing are online budgeting tools and automated chatbots, putting the customers at the forefront by improving security, speed, and delivering services efficiently.
The rise of digital banking
Speaking of efficient systems, digital revolutions like digital banking is gradually rising as it makes life significantly easier for customers. Beyond enhancing the convenience for customers, banks are also learning to keep up with the pace as it offers cost-effective solutions and more reliable security.
Without the need to produce physical transactions, the risk of manipulation, thefts, and forges regarding checks will be little-to-none. Not to mention, the banking industry can also save plenty of money from administrative expenses as all transactions are done electronically, removing the need to invest in paper forms.
The role of AI and machine learning in finance
AI and machine learning are turning the tides in various industries, so it’s no surprise that the finance sector is also making room to integrate AI-powered programs to improve the bank’s system.
In addition to boosting productivity by automating menial and repetitive tasks, Microsoft has also taken the extra step by using AI to accurately spot fraudulent activity in as quickly as two seconds.
Similar machine learning programs are used to enhance security by protecting mobile banking and reviewing login credentials, leading to cost-effective ways to mitigate cybercrime. Beyond increasing the finance industry’s cybersecurity, AI also provides complex data that contain valuable insight regarding real-time investments or consumer behavior.
The bottom line: Embracing technology and going digital for the financial industry
There is no doubt that the banking and finance industry in the UK, along with the rest of the world, is going digital in more ways than ever. Technology paves the way for better solutions – one that maximizes skills, creates new opportunities, and improves the overall user experience.
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