, BFSI

As we stand at the brink of the 4th industrial revolution, technology is becoming a key transformation agent for every sector of the financial services industry. 2020 is going to be the year of digital becoming mainstream for financial services. The industry is embracing disruption and transforming business models with the help of emerging digital technologies and fintech partnerships.

Advancements in blockchain, robotics, and artificial intelligence create new growth opportunities for budding fintechs and financial companies. If you are a financial service firm ready to introduce digital transformation for your business, here are the trends that you need to adapt to get ready for 2020.

Blockchain- the key disruptor of the financial sector

Blockchain has the potential to make the infrastructure of your financial services business much less expensive and the processes more efficient. This decentralized and distributed technology can identify theft and fraud and save the industry from significant losses and help save billions of dollars. Financial institutions and emerging fintechs will use blockchain to a large extent for digital payments, smart contracts, trading shares, automated contractual agreements, and identity management.

Big Data and AI for hyper-personalization

Financial services companies can now have all the information about their customers’ interests and behavioural history from social media and other platforms. Big data and artificial intelligence facilitate hyper-personalization by processing, storing, and driving insights from these data. Fintech players and financial businesses can use these real-time insights to drive a one-to-one marketing experience for their customers. Sending relevant and useful marketing messages will help in attracting customers better, and keeping them loyal. Banks and financial institutions can use AI not just to enhance customer experience but also to curb frauds and reduce back-office operations costs.

Robotic Process Automation (RPA) for automated processes

Fintechs can use robotic process automation to address key pressure points, mitigate risks and reduce costs. Robots are powered by emotional intelligence, logical reasoning, natural language processing, navigation, sensors, etc. that enable them to sense and respond to the details of the environment like a real bank teller. This involves tasks such as risk assessments, customer onboarding, verification, security checks, data analysis and reporting, administrative activities, and many more. Over time, these robots will be able to perform more complex tasks, making financial processes more efficient and seamless.

Digital-only banks for improved customer service

Banks will soon have AI systems equipped with automated credit-scoring and advanced data analytics tools, that will accelerate digital on-boarding. Conversational interfaces such as digital voice assistants inside banks will be a major digital interface for communication between financial service providers, consumers, and e-commerce providers.

Innovations in mobile payments

The mobile payments industry is growing like never before, thanks to the consumers who want payments to be free, fast, and invisible. Companies such as Apple, Google, Alibaba etc. roll out new features such as biometric access control, face recognition and fingerprint access for their payment platforms. These and many other mobile payment platforms constantly upgrade their apps with offers and programs that are meant to engage the users better.

Conclusion

By adopting all these trends, financial institutions can unlock new avenues for innovation, improve customer service and enhance operations. If you are a financial services company ready to embrace digital and adopt new technologies, Gateway Digital can be your ideal partner. We can help you introduce a multi-speed IT operating model, prepare an architecture to connect anything to anywhere, cut down the cost of your legacy environment by up to 50%, and guide you through the investments you need to make in emerging technologies such as AI, advanced analytics, blockchain, etc.

To know more about our digital solutions and capabilities, visit www.gatewaydigital.no or write to us at hello@gatewaydigital.no.

Leave a Reply