Technologies are Bringing Advancement in Financial Services
Financial technology more often known as fintech has been capturing the wide area in the financial industry and venture capitalists. In this, mobile technology and other platforms have added an icing on the cake. The financial and banking services have seen lots of twists and turn with technologies. The financial experts suggest that the twists would not give it a break rather in next five years the technologies would make this more flourishing and secure. Biometrics and advanced cryptography have already been safeguarding the financial services and applying a protective layer for scams and frauds. In this era of digitalization, the technologies would have the great impact on the financial industries.
We are putting some light on the latest technologies and their impact on the financial industries.
1. Advanced ATMs
Amazingly, like Google Wallet and Apple pay, ATMs are too empowering the digital payment system in an advanced way. For enhancing the security features, the IT department is working with the innovative technologies and incorporating iris recognition, biometric inception, authentication to allow contactless payments. The advanced security features would be more active and prevent the ATMs from hacks and robbery.
2. Open Banking
Nowadays all the banks have been synchronising all its customers accounts with other banks through open banking service. The established banks are larger than newer and smaller banks and with open banking it allows better customer service, lower costs and better technology. Open banking aids a better financial solution as all the banks are openly operated and interconnected with each other, the chances of loan frauds and scam can be controlled. With open banking, customer’s records are networked with every connected bank that helps in envisaging the customer’s record and financial situation while offering loans to them. This helps the financial companies and banks to run a lower risk of frauds and scams.
3. Flourishing Non-banks
The financial service providers as non-banks are now flourishing more and more due to the incorporation of latest and advanced fintech in this sector. Market intelligence firm Greenwich Associates in its report in 2016 has revealed that major area of financial resources is solely responsible for compliance, security and other financial industry demands. This gives a new reason to non-banks and financial service providers to garnish its way to success. Though it can’t be denied that banking sectors have more satisfied customers, with the potential to accumulate the large assets of financial technology, the non-banks are driving digital and techno-savvy customers to its financial process.
4. Blockchain Technology
Blockchain technology is emerging as a reforming technology in the financial and banking industry. Cryptocurrency Bitcoin is a new buzz in the financial sector. Blockchain has given a new way to the financial sector where there is a gamut of records and entries that need to be accumulated for serving the customers with the financial services. It is based on the inter-node communication protocol for connecting a peer to peer network of computers. The financial data get recorded in the form of blocks using cryptography. It is more secure for the distributed ledger that cannot be hacked or altered easily. It works on decentralization of the networks, therefore, no central server is required for data and information accumulation. Blockchain technology works everywhere you need to distribute ledger as in medical records, identity management, documenting provenance etc. PSD2 Blockchain works best in the recording of events and transaction processing.
5. Automated Financial Services Employees
As with the technologies and advancements, the fintech are flourishing. The financial aids are reducing the personalization of the banking sectors. The automation in financial services is resulting in adding more personalization in the customer’s experience and services with the financial service providers. Recently, Citigroup has presented a report in which statistics show that automation in retail or financial banking would result in 30% loss in banking jobs by 2025. Robo advisors can effectively transform the way of financial services and its personalization towards the customers.
In an epitomize way, the finance industry and banking sector would witness the tremendous growth through smart technologies and mobile tech advancements. The technologies are leveraging with the financial simplification and ease to the customers and banking sectors. If you are a financial service provider, non-bank organization or the government bank envisioning for the reinforcement of the customer’s experience, the financial solutions blended with IT and fintech is the key to your success.
Hvantage Technologies understands the depth of financial services and its importance and therefore leverage our clients with the advanced technology and security features to serve their customers with the financial aid. We provide the financial solutions with the mobile banking apps and financial transactions responsive websites.
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