Five major trends in Fintech solutions that will affect the banking industry
Posted by Abhinav Kashyap on April 30th, 2018
2017 was the year which saw new regulatory policies and technological advancements being made in the banking sector. However, this has only led the incumbents of the banking sector feel the pressure of the demanding customers and growing competition.
But something good came out of that, and we will discuss top five Fintech solutions that could prove to be the major game changers for the banking industry.
1. Public Cloud Migration will become even more inevitable:
If you had asked 20-25 years ago, we would have said that executing electronic transactions over the internet is not a good idea nor is building proprietary networks because of the security issues.
However, 25 years later, cloud computing has developed to an extent that there is enough evidence of it being the most secure as any private data center. This has opened windows of opportunities for financial services technology solutions providers to deploy more computing power in the public cloud. So, 2018 is going to be the year in which cloud conversation in commercial and retail banking will become predominant.
2. Chatbots:
Financial services technology solutions providers like PureSoftware are encouraging the financial institutions to adopt chatbots for supporting customer interactions.
However, these chatbots are said to possess the intelligence of toddlers, but the financial software solutions providers believe that as machines and software do not suffer from learning or physical fatigue, the evolution of the chatbots can be described as more exponential than linear.
Therefore, 2018 would be the year when the consumers can expect to interact with improved quality chatbots.
3. Blockchain:
A lot of hype is going on about Blockchain over the past few years and with Bitcoin lifting up the ante; it is no more the elephant in the room.
This has led the financial institutions to seek IT solutions for financial services to develop a Blockchain network to increase transparency, speed-up contract enforcement, and reduce fraud. Some financial institutions have already started beta testing Blockchain networks regarding its feasibility and vulnerability towards their business ecosystem.
The reason it will become a trend starting from this year is due to the fact that Blockchains are virtually unhackable. The time stamps marking the data entry in a distributed ledger ensures that.
4. Automated Personalization:
2018 and the coming years will see the financial institutions leveraging the power of Fintech to personalize the services they offer. That is, the financial institutions will change the appearance of their mobile applications as per its actual usage.
This will be done to ensure the customers are feeling more connected to them and it will also boost the impact of self-service among the users. Moreover, the financial institutions are expected to provide advanced versions of the pre-filled data to their customers based on their preferences, history, and banking habits.
5. The Banks will get smarter with Artificial Intelligence:
As a customer, you always trust your bank to hold your data and money secure. With the introduction of artificial intelligence (AI) in the banking sector, the customers who are skeptical about availing effective advice and services from their respective banks can truly enjoy holistic and contextual advices that are in their best interest.
