FinTech use cases accelerated by Robotic tools
Many of you might remember this scene from the famous movie Terminator 2: Judgement Day. The Terminator named T-800 (Arnold Schwarzenegger) holds out his hands to a frightened Sarah Conor (Linda Hamilton) and utters the now famous words “come with me if you want to live”.
While we seem to be far away from the doomsday, robots straight from sci-fi movies are already making an impact in industrial sectors. Such robots have not only brought down the time and cost associated with large-scale production, but they are also supporting precision jobs which humans simply can’t do.
Even the service-oriented sectors like the FinTech sector, have benefitted immensely by using such robotic tools. Not only have these tools brought speed, but they have also brought accuracy and efficiency to do repetitive tasks. Most human employees would find such tasks boring and monotonous despite the fact that they are critical to the business.
The use of such robotic tools, mostly Robotic Process Automation (RPA), has transformed the FinTech sector and differentiated it from the traditional banking & finance sector. FinTech companies are agile, faster to adapt to changes and quicker to introduce revolutionary products which their older siblings failed to conceptualise.
This was possible only because of the technological developments which enabled the FinTech companies to rise out of nowhere and make their presence felt. However, looking at the way the technology is evolving, especially in robotics, the rise of the FinTech sector seems to have just begun. The best is yet to come!
Here are some of the key areas of the FinTech industry which are likely to experience a transformation due to the rapid developments in robotic tools.?
A decade ago, getting a loan was a cumbersome process. Weeks went by between the time you apply for a loan and finally got the money in your hand. Compare that with today. Credit is now available at your fingertips. All you need is a smartphone. These new-age lending FinTechs have advanced robotic tools working for them in the background that speed up the process from weeks to just a few minutes. These robotic tools are designed to communicate with the client, assess the client’s risk profile, verify the documents and if found satisfactory, disburse the loan. All this happens almost instantly. The Robotic tool even tracks the repayments and releases necessary instructions to the creditor from time to time.
Since a financial institution is the custodian of a client’s money, fraud prevention, detection and managing it in the right manner becomes a fundamental activity. However, the rising scale of operations, growing complexity of transactions and even the global nature of commerce, made manual tracking of fraud a very tedious & time-consuming if not an impossible job.
Enter Machine learning based robotic tools, and things changed for the better. Fraud detecting and managing robotic tools were designed to prevent, detect, and manage frauds in the system in a much better way than us humans. Also, they can perform a large number of repetitive tasks simultaneously without taking a break. With cutting edge technologies like Artificial Intelligence and Machine Learning, robotic tools will guard organisations of the future in a much better way against frauds.?
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Sound investment decisions are a result of accurate data analysis and right business advice. However, with the quantum of information rising every day, even the most experienced advisors are finding it difficult to process such a large quantum of data. Even worse, differentiating between relevant and irrelevant data is proving to be a gargantuan task.
This is where robotic tools come into play! Robotic tools are in a far better position to analyse tons of data, convert it into actionable information and then recommend the right way ahead. They are not only making this data processing job faster but are also making it manageable so that the information available from the raw data is relevant, accurate and useful. This makes the job of the Financial Advisor much easier and meaningful.
Traders are generally good at processing available information. However, the rising quantum of information is forcing them to process only a limited part of it. This means that their decisions are not based on a comprehensive view of the market situations but only on the information that they have analysed. This gap may even result in Traders making a sub-optimal decision.?
Robotic tools are being programmed today to study the data, derive specific information, and spot trends. They are able to not only analyse a far larger quantum of data, but they are also able to process it much faster and even arrive at recommendations which are more accurate. Traders can not only spot trends much sooner, but also see the complete picture and arrive at a sound decision. Today, a host of such FinTech trading entities have already started providing such services to their clients.
In today’s world financial management is a critical task. Along with the revenues, one also needs to manage the expense side of the equation. Soon robotic tools will help you manage this aspect. They will not only help you invest better, but also spend smartly. Instead of just being a wallet, FinTechs are aiming to become smart wallets that are much more than mere digital payment enablers. By understanding a user’s spending patterns better, the financial management robots will be able to recommend smarter ways of using the available money in the wallet.
From the institution’s perspective, the rise in customer base requires that they make their customer relationship management function robust. Being dependent on manual resources to manage this crucial function may not only prove costly but also inefficient when the customer base becomes too large.
Hence organisations are deploying robotic tools to manage the routine and repetitive tasks. There are many examples where robotic tools have improved the quality of interactions and have helped the satisfaction levels to rise. For instance, take Chatbots. Unlike their human counterparts, Chatbots can engage with multiple customers simultaneously and repetitively on one or different subjects round the clock without getting bored or losing patience.?
Robotic tools are here to stay. They are here to help us in the long run. While there are concerns about our rising dependence on such tools, the jury is still out on whether these concerns are justified or not.
But one thing is for sure, robotic tools are turning out to be like Arnold Schwarzenegger, who will keep meeting us at different places smiling and saying “hasta la vista, baby”