Over the previous few decades, technological advancements have altered how we speak, listen, buy, and conduct business. New technologies in the financial industry have continuously changed how people interact with their money, what they anticipate from financial institutions, and how those businesses run. Modern processes are simple and made more effective, mistake rates are not so often. Moreover, communication has higher quality, and consumer perceptions of and interactions with money are different.
However, financial organizations stand to gain the most from these technologies. Chatbots and automation, two emerging technologies in the financial services sector, cut labor hours, enhance client connections and boost profitability. Despite the fact that the effect of new technology on financial services will vary depending on the function, you may probably adapt to many of them and gain a lot from them.
Banks’ Digital Experience Platforms
Although digital experience platforms are nothing new, contemporary technologies are enabling financial institutions to change a field that is still developing in the financial services industry. For instance, hybrid cloud (cloud/server) solutions offer customers accessibility and privacy. Additionally, hybrid platforms enable real-time intelligent data integration for advanced analytics, personalization, and digitization.
The introduction of API platforms, where users may link their financial data to other apps and vice versa, is among the most significant of these advancements. Although many financial institutions have opposed API, as a result of EU regulations requiring businesses to provide open API, many U.S.-based businesses are now doing the same.
Blockchain is a new financial services technology trend that is revolutionizing the financial world as we know it, although its adoption of it is still somewhat slow. The technology that underpins Bitcoin, known as the blockchain, has been adopted by major financial institutions like JP Morgan Chase and is viewed as one of the biggest opportunities available to banks and other financial institutions right now. For instance, Accenture believes that by moving to clear and settling operations to the blockchain, investment banks may save $10 billion.
Despite being one of the most popular emerging technologies in the financial services sector, blockchain is not yet widely available. While some businesses are creating broader solutions, the majority of banks are implementing blockchain solutions on their own, including checking, money processing, trade finance, etc. Smaller financial institutions may face serious obstacles as a result if they lack the resources to find a solution. But with the recent rapid uptake of blockchain, it will soon overtake other common solutions for things like payments, fraud prevention, loan processing, smart contracts, and more.
Financial Services Automation
The most popular technology for automation, known as robotic process automation, or RPA, simply automates fixed and repeated procedures. Automation, as opposed to AI, uses a straightforward set of principles (If this Equals then that) to provide relatively straightforward but trustworthy outputs. These pre-programmed rules can apply to unstructured data (forms filled out by hand) or structured data (incoming data on interest charts) to handle digitization, approval, risk flagging, and other processes. Many also incorporate learning patterns, which allows them to get better over time based on growing data volumes.
RPAs are typically used to create reports, log data, automate repetitive tasks, and keep logs. RPA, for instance, may handle quick payments by employing a programmed rule to authorize a payment automatically if all requirements are met. The data would then be updated across all apps and servers using the data after another RPA moved the documentation from the original file into a larger one.
RPA is one of the financial services technology developments that enable banks to save costs, eliminate human error, and speed up procedures. Customers benefit from the convenience as well because they don’t have to wait as long for human approval. RPAs help financial organizations with compliance and auditing since they frequently provide paperwork and reports automatically. Because RPAs will log and retain all data without the complications of silos, human mistakes, or variations in how teams log and collect data, this could lead to a significantly streamlined audit process.
Are You Ready for new technologies in the financial industry?
While creating chatbots, experience portals, blockchain systems or artificial intelligence systems from scratch would be ineffective and expensive, banks of all sizes are increasingly able to access these cutting-edge financial services technology. Financial institutions can rent and customize apps, chatbots, and other solutions that would normally require years to produce to any standard of quality thanks to the work of digital experience platforms and developers that create solutions with them in mind. Then, financial institutions can gain from cutting-edge technologies without straying from their core competencies.
While many developing technologies have a lot to offer, none is a certainty. It’s crucial to investigate your possibilities, take the ones that work best for you, and keep expanding and developing those options if you’re looking for answers for your financial organization.