4 ways technology is transforming finance

Technology in finance is enhancing workflows and processes in the financial services industry. Several tasks that were once handled with paper money, human interaction, and bulky computer systems are now conducted entirely on digital interfaces. The disruption that technology is bringing in the financial sector is massive.

Technology in finance has made an impact on almost every type of financial activity from payments to online banking to wealth management and more. Financial institutions are now required to find a way for developing new platforms while, overcoming their existing legacy infrastructure. On the hand, startups will be required to find a way to scale out their business while, facing increased regulations and governance policies.

In this blog post, we will take a look at those technological advancements that are ruling the frontiers of the finance industry.

Getting Smart with IoT

For having a better understanding of customer behaviour and for providing more personalized services, financial institutions are now deploying IoT devices for their customer base. For instance, some automotive insurance companies are providing tracking devices that customers will fit in their car. This approach will facilitate accurate insurance underwriting,with both customers and companies gain tangible benefits.

Providing Better Customer Experience with AI-powered Bots

As several banks are recognizing that their systems and applications are lacking customer ease and convenience, they are now implementing AI based chat bots for enhancing their customer experience. For instance, an AI bot will know about a particular customer’s spending habits by tracking and analyzing their card transactions. Based on this data, chat bots will give them budget planning tips and help customers keep their finances under control. A banking chat bot will also help in connecting to internal systems to quickly provide access to the right data or to input customer information. Moreover, conversational AI in banking is also used in the area of fraud prevention as it can be programmed for monitoring and recognizing warning signs of fraudulent activity and send notifications.

Conducting Effective Research with Machine Learning Technology in Finance

Artificial intelligence and machine learning algorithms are also effectively managing the discovery process. The financial research community can free up significant portions of the time they currently devote scanning for trends.

Unleashing the Power of blockchain

The main focus of the blockchain technology is to provide transparent and trusted dealings between participants in a network without the need of having a centralized monitoring. Implementation of blockchain technology has led to the development of transformative applications within the financial services industry. Blockchain’s near-real-time transaction processing capabilities are accelerating transaction validation and finalization for facilitating instant payments. Moreover, it has helped in eliminating the need for intermediaries by creating a decentralized network and thereby, reducing transaction cost. Experts believe that technology will change the face of the financial industry in near future; and as financial institutions are adopting new technologies such as cloud computing and big data analytics, they should now focus on security and compliance and ensure that they are taking the necessary steps and precautions.