Technology has revolutionized every industry and with everything digitalised, the day-to-day business interactions have become more streamlined. The financial sector too has vastly accrued from this. Whether it’s retail, mobile banking or neobank startups, the FinTech Landscape is evolving at an exponential rate.
Radically transformed banking models are emerging. The emphasis of the FinTech industry is to make processes more customer-centric. The landscape is becoming more collaborative and competitive. While the current coronavirus outbreak has impacted the whole world and made each individual socially distant, a multi-channel presence is getting more precedence to facilitate transactional operations. Examples include Mobile banking, Net banking, Point of Sales, digital wallets, cardless ATMs, etc.
There are over 3.5 billion smartphone users worldwide and financial transactions have become simpler, quicker, more direct. You can be anywhere, anytime and with the help of the internet, you can simply pay/receive transactions online with the help of mobile apps. Application-based means are much faster than its web counterparts and that’s why mobile-friendly solutions have a better market value.
FinTech is at every industry’s disposal to make transactional operations easier among parties. Such methods are completely transparent. It has led to newer concepts like Regtech (reducing fraudulent activities) and Grandtech (FinTech for elderly persons).
But what are the key technologies that are helping the FinTech sector become all-encompassing and all-pervasive for businesses in the future? Let us have a look.
Artificial Intelligence
In technology’s recent history, nothing has left better footprints like Artificial Intelligence. The booming growth of structured and unstructured data among financial apps are plenty in number. Some key benefits include accurate decision making, reduction in downtime, threat detection and management, automated customer support, insurance management and predictive analysis to name a few. More and more financial apps are utilising AI technology to gain efficiency. AI is further enhanced by sub-technologies like Machine Learning, IoT and Big Data Analytics.
Cloud and IoT
Financial institutions are constantly looking for ways to access data quickly and without gathering any moss. This can be done through cloud computing. Cloud Technology offers unlimited storage space and unprecedented computing capabilities. Cloud will help in many ways including speeding up client servicing, enhancing the scope of scalability and flexibility, improving efficiency, reducing costs, strengthening relationships with clients and in achieving global compliance.
FinTech and IoT integration will vastly improve data collection and processing. IoT, which is powered by AI, helps in understanding consumer behaviour and preferences. It will provide immediate support, indoor navigation, queue management, etc.
Together IoT and Cloud make a comprehensive pair. A Financial app owner will hire an app developer hereupon who specializes in Cloud and IoT.
AR and VR
Artificial intelligence, isometric AI robot on mobile phone screen; image by Fullvector, via Freepik.com.
Augmented Reality and Virtual Reality have permeated into every other industry with roaring success, thus banks and financial institutions too can have an oceanic change with the technologies. Experts have deduced that AR and VR can enable bank customers to have autonomy over at-home banking. General financial data can be remoulded into stunning visual experiences making the entire process more personalized for the customers. Swissqoute, which is a Swiss banking group, came up with a VR app that provides users with a 360° trading wall using a VR helmet to observe markets and engage in trades.
Cardless ATMs
Cardless ATMs have already started making their mark as a faster and safer means of cash withdrawals. Smartphones come pre-loaded with security aspects like biometric authentication and two-step verification, which makes cardless withdrawals tauter. A simple illustration can be that you leave/forget your ATM card at home and an ill-fated thing strikes — your phone gets stolen. Now the marauder has to pass through multiple security checks to acquire access to your ATM, instead of finding the PIN.
To implement this feature banks have come up with a number of ways. One is instant code generation through an app on your phone that needs to be entered along with the PIN, another technique includes the use of phone cameras and beacons.
Blockchain
Blockchain is more than just the technology that gave rise to cryptocurrencies; it’s a technology that improves efficiency, curbs excess expenditure and provides robust security for financial services. It’s one of the biggest and the most unique disruptive technologies to exist. Financial institutions, although few in number, have initiated testing of blockchain technology for bank-to-bank transfers, payments, threat detection and reduction, KYC, loan processing, etc. Blockchain facilitates smoother trade in financial applications which helps in trust-building. Some common services you can expect in the future include cross-border transactions, trade finance platforms, clearance and settlements, credit reporting and digital ID verification.
The evolution of financial and banking apps in the future will be vastly different from what it is today. Core technologies like the ones listed above will become mandatory features to mobilise the entire process and make it more customer-friendly. The coronavirus pandemic was a stepping stone for everything as it has forced every industry to reconsider its way of communicating with the masses. Absolute transparency is in demand and also the objective along with lowering regulatory costs and maintaining compliance. Seamless development in financial apps with state-of-the-art technology will make your life easier. It will be your need more than a want.
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