How New Tech Is Disrupting Financial Services – The finance industry is incorporating technology to improve its operations. It is more common to see tech trends like artificial intelligence, machine learning, and cloud computing every year. According to the Global FinTech Adoption Index 2019, 64 percent of users worldwide have used at least one fintech platform.
How New Tech Is Disrupting Financial Services
Technology is expected to improve the banking industry by providing more security, efficiency, and transparency in every operation. In this guide, we will show you some of the latest tech trends in the finance industry, according to Deloitte’s recent study.
Artificial intelligence is a computer science discipline that automates human tasks. It is one of the most in-demand trends in the financial sector. It is used across multiple functions, including
facial recognition, security, chatbots for customer service, and more. AI aims to make computers perform human-like activities and automate operations.
With AI-driven chatbots, customers can get support 24/7 and get a response to their queries instantly. It is still not perfect, considering that chatbots don’t have all the answers, but it’s an efficient way to automate customer service. Artificial intelligence is also a great way to prevent fraud in banking transactions. It detects possible threats automatically, making our banks a safer place to protect our money.
Machine learning is a powerful tool in the banking sector. It is mostly used to analyze data and automate trading transactions by providing accurate predictions. With machine learning, people can analyze large data sets and identify trends, patterns, and forecast situations quickly, which automates the entire evaluation process.
It is also used to provide financial advice for companies by analyzing the current and possible outlook in the market. Machine learning is a subset of artificial intelligence, so it is also used to detect fraud in banking operations.
Robotics are gradually making their way into finance. According to the previously mentioned Deloitte study, 40 percent of companies are considering implementing robotics in the finance industry. Robots are used to automate transactions and reduce human errors.
Robots can process a high volume of complicated banking operations to make the process more efficient and reduce redundancy. This will reduce costs from human labor and improve productivity since robots can work over 20 hours per day and seven days a week.
Biotechnology is used to automate the verification process in banking platforms and improve security levels. Some examples of biotechnology in finance include face, eyes, fingers, or voice recognition to grant access to the platforms.
Even though passwords were considered a secure verification step, biotechnology seems to be more efficient and safe. This way, companies were also able to prevent fraud, stealing, and other possible financial attacks on users.
Just like any other industry, the finance sector manages a high volume of data, and it’s even more crucial to store it safely and efficiently. Cloud computing offers just that. It is a more secure way to save data and protect it from data breaches, cyber-attacks, and more. With cloud computing, companies are more fraud-tolerant and have a solid foundation for disaster recovery.
Cloud computing provides a more affordable service than on-site servers. This reduces costs from electricity consumption and server maintenance. Below, you will find a list of the most commonly used cloud computing in the finance sector:
- For mobile app payment processing
- Customer support and marketing operations
- Data protection
- HR Management
The finance service is not exempt from cyber attacks. It is actually a major target for cybercrimes. That’s why it is so crucial for financial companies to implement cyber security measures to prevent data leaks, cyber-attacks, and more. As a result, financial companies seek professionals with cyber security knowledge from schools like Coding Dojo, Springboard, and Flatiron School to protect themselves from cyber attacks.
Technology has a major impact on the finance industry. It is helping companies reduce costs by automating tasks, providing more security to banking transactions, and more transparency. This is only the beginning. In the next couple of years, we might see an even higher implementation of trends like cloud computing, machine learning, and cyber security.