Blockchain, cognitive technology, and Data analytics are expected to take the financial services industry to the next level. But to what extent are these disruptive digital technologies gaining traction throughout the industry. Let’s check
Fremont, CA: It is evident that there has been a massive impact of technology on financial services in the past few years. Businesses are obligated to pivot from traditional financial practices to more agile, innovative approaches to stay ahead of the pack.
There is no argument that the year 2020 and onwards will witness a paradigm shift in how technologies impact businesses. As businesses will leverage advanced fintech (Financial Technologies) to create new, efficient business models, there will be increased adoption of technology-led innovation in products and services.
This is evident from the fact that the fintech market is continuously expanding. As per a recent report, it was estimated at $127.66 billion in 2018 and is anticipated to reach $309.98 billion by 2022. According to another report, there was approximately 64 percent growth in the fintech adoption rate worldwide in 2019.
The following are a few forthcoming financial services technology trends in 2020 that will help organizations tackle both existing and upcoming issues. These financial services trends will aid insurance, banking, and other financial institutions to bring in security, enhance accessibility, provide convenience, and ultimately build trust.
Evidently, Blockchain is going to be the backbone of the sharing economy that has the capability to induce security and accountability in the product and service delivery arena. It scrutinizes all transactions in a cost-effective, verified, and decentralized manner, as well as ensures enhanced transparency and trust.
AI is one of the most promising technologies in the financial industry, with its high-computing and cognitive abilities. It helps financial businesses detect frauds, manage risks, and identify data patterns that allow them to make decisions with zero human intervention. In addition, AI helps customize financial products and services, perform budget analysis, obtain saving advice, and realize the best of mobile banking and digital payment experiences.
Data has a crucial role in the financial industry, and when mapped with technologies such as data analytics, it can deliver business value. With data analytics, businesses can process data and gain actionable insights that help in decision-making, risk management, fraud detection, product development, and even more.