Technology has played a great role in the financial industry over the past few years. As technology advances even further, it provides financial institutions with better opportunities that will create more impact than most traditional financial services. It is common for executives to rely on their IT department to improve efficiency and find ways to innovate and calculate return on investment while also lowering costs. The many benefits technology has brought to the financial industry has enabled the sector to leverage automation, analyse data efficiently and maintain digital records. Considering the fast pace of tech and innovative approaches such as artificial intelligence, company accountants must find ways to adapt to this constantly evolving environment as well as investment property calculator so as not to lag behind the competition. It is clear that technology shows no signs of slowing down and even promises to offer more in 2020. Here are the top technology trends in finance to keep track of and help you stand out from the competition.
The growth of AI
Artificial intelligence has been growing in popularity around Fintech for quite some time now. They work best with the combination of big data and management solutions. Artificial intelligence has helped banks by analysing their service performance such as streamlining customer application experience and running partial automation on essential organisational decisions like documentation and team administration. They also help create insights that will enable banks to provide a better, simpler, faster customer experience. Some established brands like Google, Amazon and others already offer AI-as-a-service platform, which enables developers that are less-experienced with data science to learn how to integrate this advanced technology in their services. The great benefits AI provides to financial institutions hold a lot of unexplored potential that keeps attracting investors. There is still enough room for unimaginable innovation.
The integration of blockchain
Blockchain is no longer news for it has been on the rise since 2018. While some experts have predicted the end of the blockchain reign, some people have embraced this innovative approach in cryptocurrencies, others understand the driving factor behind decentralised technologies. This shows this advanced tech isn’t going anywhere. Some banks are leveraging blockchain to secure financial transactions including being updated with current gold price. Each transaction is encrypted with fewer chances of being penetrated. In addition, each network stakeholders will be given the opportunity to approve any pending transaction which makes it almost impossible for hackers to penetrate. Some international businesses make use of the tokenization system to use universal currencies rather than country-specific currency. Others make use of a decentralised database to secure their customers’ confidential and financial information. Information such as real-time payments and bio details are stored on several blockchain servers, unlike the traditional centralised system. There are fewer chances of targeting a single database, thereby preventing future cyber attacks.
Robotic process automation
As some Fintech companies lack the in-house resources to create customised AI solutions, they opt for alternative options. They go for the easiest option- partnering with a technology provider. Through this year, AI has been adopted for reducing processes duration, an edge over other competitors. In 2020 robotics will play an important role in crucial financial processes. Robotic process automation helps direct workflows. It can also serve as a means to reduce the number of human resources in financial institutions. Instead, they can apply robotic process automation to their business management solutions. It uses robotics to perform tasks through a graphical user interface. The most common robotic process automation procedures range from simple actions such as collecting statistics, managing emails and attachments to complex procedures such as extracting summaries from large files and organising a database.
Another crucial feature is risk management. Robotic assistants can follow up on the dynamics of the market and identify potential market threats.
Chatbots have shown considerable growth this 2019. Conversational banking assistants were implemented by the Bank of America and others. In 2020, it is expected that these chatbots will show more cutting-edge developments and Fintech companies will do their best to adopt them. Presently, one of the challenges faced is not comprehending customers’ needs and intentions. Chatbots aren’t capable of understanding the customer’s needs specifically the use of casual language. Grammatical redundancies, abbreviations and slang make it even harder for a message to be understood by a digital assistant. In the year 2020, chatbots are expected to provide solutions to these problems covering more than 25 percent B2B organisations. Some ways include multiple-choice alternatives, questions and examples.
Another problem can be seen in time-efficiency and clarity. A chatbot may finally be equipped to understand a customer’s request. But it doesn’t end there. The next step is ensuring the customer’s needs are met seamlessly. Some developers are making plans to add maps, videos and natural voice memos to digital assistants. If they are, it will prove tough to rank as well as having zero chance to engage the searcher. This shows how chatbots can take the customer experience to another level. Business assets insurance guarantees that unforeseen occurrences do not ruin your business.
Cloud computing has shown a fast-growing adoption rate with tech giants like Google (google cloud), amazon (amazon web services) and Microsoft (Microsoft Azure) dominating the cloud market. As more financial institutions adopt a cloud solution, cloud computing is no longer the emerging tech. In the year 2020, it is expected that 75 percent of business data will be processed outside the centralised cloud centre. This will translate to an increase below the 10 per cent that is made today. Relative to a public cloud under the ownership and operation of a third-party cloud service provider, a widely shared cloud connects public cloud services to outside locations while the main provider also shows responsibility for business operations, updates and cloud service structure. This will enable financial institutions to be more flexible in their operations, and provides them with better security options, greater deployment options and reduced risk associated with network-related outages.