Financial institutions have undergone massive transformations owing to the digital disruption in the contemporary world. Innovations in technology, overpowering mergers, company acquisitions and cut throat competition continue to dominate the capital industry. In addition to these reforms, the seesawing global economy also has an upper hand. Previously, the technologies that were designed, developed, tested and launched by the MNCs now arrive within a fraction of a second in the real world. The forces behind these disrupting technologies are the miniscule start-up companies and modern techies who have a vision to make or reshape it.
With an aim to overcome the recurring issues, the financial supermarkets are coming up with improvised investment strategies, real time systems to monitor client investments, counselling sessions on planning the long-term fund placements for small to multinational companies as well as individuals.
Here are some key trends that will continue to dominate the financial industry in 2018.
- Go Digital or Die
Today, the community at large has become technically inclined, expecting new modes of financial ecosystems to deliver a one-stop-shop for their capital investments. Unfortunately, there is no escape route for those companies who follow the old-fashioned system. It is rather a high time for them to accept the technology rewards and stand a chance to compete in the industry. Therefore, the conventional solution provider companies are altering their platforms into a futuristic one.
- New Techs on the Block
Artificial Intelligence (AI), Blockchain technology and Robotic Process Automation (RPA) are showing no signs to slow down, rather they are catching up speed to influence the existing systems.
In regards to AI, corporate sales, marketing, trading, compliance and wealth management heads will get a makeover. Moreover, advancements in Data Science and Cognitive Learning will be applied across these sectors to address the crucial pressure points, reduce costs, and risks.
Blockchain will shift its focus from retail commercialization to advanced public ledger in the financial sector.
RPA systems known for mimicking the human activities will come into play for unlocking the potential of its technological benefits. In the form of Robo-advisors, the systems will be armored with social and emotional intelligence, language processing, logical reasoning, pattern identifications and self-supervised learning, physical sensors, mobility along with navigation.
- Dawn of e-banks
Digital-only banks offering an innovative range of services and solutions are now viewed as a threat to the existing conventional banks. These e-banks are bound to provoke the raging competition in the industry as well as push the other non-digital banks to follow in their footsteps.
- Explosion of Creative Engineering
Over the coming times, UX will be translated from vision to reality using innovative designing and creative engineering technologies. Fintech professionals will change gears and focus on customer engaging programs where avenues of opening user accounts and other related procedures will be modernized using Augmented Reality (AR). In turn, AR and VR will reap benefits from these progressive UX creative designs to elevate customer affinity and to attract the attention of new target users.
- Initiatives for Risk Management
The entire industry of finance is full of risks and challenges creeping at every nook and corner. However, with the latest introduction of technologies such as AI, appropriate measures will be taken to identify, assess, and control risks arising from the operational factors and decision-making processes.
- Emergence of Alternate Lenders
Private money lenders have currently started offering capital to individuals and venturists who need urgent credit through customized mobile apps and online websites. This private lending practice has created a major challenge for the residing banks and credit unions. The alternative lenders are also known to utilize technology-based algorithms and software integrations to assess profiles of the potential customers apart from acquiring their personal information in the form of photographs, locations, e-commerce and payment details from various social media and online platforms.
- Tech-driven Regulators
Technological rewards are not just limited to the finance sector alone. Slowly and steadily, regulators are turning to the fast paced digitization in order to understand the industrial scenario and related activities. Also, they are taking initiatives to identify and prevent future issues at an early stage rather than wasting time at a later stage.
- Big Data Widen its Horizon
Data analysis and processing technology, Big Data is introducing modern and refined prototypes with better data tools and visual effects. If conventional banks and financial ecosystem adopt these Big Data tools, then data virtualization, data lineage, and data visualization will be a piece of cake for them.
- Omnipresence of Cloud
Cloud Computing has made major waves in every sector since its arrival. Therefore, it is no surprise that the financial sector is utilizing the advantages of Cloud governed softwares in HR, CRM, as well as open application program interface (API) architectures. In short, Cloud Computing will continue its dynamic march towards the future.
From Blockchain to AR and VR, technology will continue to disrupt various industrial sectors in the following years. The only guaranteed certainty is that the digital rewards in the form of innovation and practicality will be enormous. On a bright side, customers will be in for a treat with numerous options over functionality, conveniences and modern applications in the banking and financial industry. The future of Fintech will therefore be defined by its name.