janvier 19, 2021
Blockchain, RPA, Artificial Intelligence, RegTech and Conversational Banking.
Before considering the transformation of the five technologies into financial technology, please consider what financial technology is.
Fintech integrates technology and finance, and harmoniously combines the two largest industries. Of course, the impact is huge. Five years ago, fintech solutions were still regarded as cutting-edge innovations, but now they have become everyday life.
According to McKinsey’s data, 80% of financial institutions have sought innovation in 2018, and investment in this field is estimated to reach 30.8 billion US dollars. Now compare this figure with the $1.8 billion in 2011.
We analyzed new fintech projects, start-ups and internal innovation, and summarized this research into a list of 5 technologies that will revolutionize the industry in 2020.
Regulatory technology is creating automated solutions to manage regulatory monitoring, compliance and reporting through the latest breakthrough fintech software innovations. Tracking new restrictions in a single database is a convenient way to adapt financial institutions to legal requirements.
There are currently more than 150 RegTech companies. Compared with the 300 million pages of existing regulations, this feels very small. Failure to comply with mandatory government regulations will lead to fines and crises. The management of a financial institution (FI) will try to do everything on its own to avoid these problems.
The demand for RegTech solutions in the market is obvious. Obviously, this niche market will be filled soon, and by the first half of 2020, you will see outstanding startups. This is why FI owners should consider becoming one of the leading RegTech providers in the financial sector.
Artificial Intelligence (AI) has been engaged for 5 years in the financial technology industry. However, although it says a lot about its popularity, its efficiency still causes many problems. Let us take a closer look at the dynamics of AI solutions in the industry and analyze how to carry out this innovation.
A good example of the application of AI in the financial sector is Alpaca Forecast AI Prediction Matrix, Is a price prediction solution developed by Bloomberg. The software can handle millions of transaction records, record changes in demand, define patterns and predict future price changes.
Machine learning (ML) is one of the important AI components and is widely used in banking in the following areas:
The Internet of Things (IoT) can accelerate financial processes internally (management and team organization) and externally (client management and communication). The Internet of Things network allows you to connect your smartphone to a financial database and transfer data directly from one device to another.
So far, retail banking is the clearest sign of the development of Fintech IoT. A good example of this innovation is Citibank and beacon-based solutions can unlock ATM access via smartphones during non-working hours.
Since 2018, blockchain has been growing, it doesn’t often make headlines now, but innovation has nowhere to go. Many Asian banks have officially adopted blockchain to protect their financial transactions, and European and American institutions will follow this trend.
Benefits of using blockchain in fintech
From the Commonwealth Bank of Australia to Alpha Bank of Russia, blockchain transactions are being implemented globally, and new institutions join this trend every month.
In order to reduce the use of human resources, financial institutions can apply RPA to their business management solutions. RPA uses robots to complete tasks through a graphical user interface (GUI). The tasks range from simple tasks (selecting projects, sending emails) to complex processes (writing reports, configuring databases).
The most common RPA procedures are as follows:
Conversational banking will become the mainstream, the development of artificial intelligence and language processing technology will naturally lead to the active implementation of chatbots, and financial technology is no exception. The use of chatbots in financial management and transactions is called conversational banking.
Examples of efficient dialogue banks include Erica, a chat robot developed by Bank of America. The bot handles the most popular client’s questions by processing text and voice messages and providing answers with text responses or voice memos.
Due to the development of technology and the ever-changing demands of the financial market, changes are inevitable. Every year, financial technology changes in new ways. The way you integrate these trends into your business will determine your success. Combining RegTech, artificial intelligence, Internet of Things and machine learning with blockchain and conversational banking will play an important role in attracting customers and improving the efficiency of financial institutions in 2021. Banking companies do not have to research every technology at the same time. – Needs substantial investment and technical expertise. Implement some of these innovations into routine operations so that you can quickly see the results you need.
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