There are several ways in which technology is revolutionising the financial sector. In a timely manner, technology can increase your visibility over all of your financial data. For instance, with a few clicks of a button, you may see your credit score and Debt review statistics online or the amount of your bank accounts. AI and predictive intelligence in the banking sector will enable users to make more informed cash flow and forecasting choices for example finding the best credit cards. As humans, when we consider the future, we tend to carry our own optimism bias with us. But technology makes the data accessible and keeps you honest, allowing you to make choices based on facts and predictions. Additionally, it may be used for scenario planning and comparing what-if alternatives.
Numerous financial duties are manual or laborious. Technology simplifies and automates processes, saving us all time and effort. As opposed to physically travelling to a bank to deposit a check, individuals may simply snap a picture of the check, and it will be deposited into their account. Expense tracking and categorisation is another example. No one likes to input and classify costs manually, but a computer can download or scan papers and receipts in a relatively short time. Then, technology may use rules and machine learning to learn and improve continually. A computer can sift through hundreds of pages of regulations, convert them into code, and create a rules-based system that assists people in understanding compliance and being compliant. This makes compliance simpler in the tax industry. There are absolutely endless ways in which technology has affected the financial sector let’s look at some of the most important aspects.
Advanced Cyber Security
Since banks and financial institutions conduct billions of digital transactions, cyber security is of paramount importance. In addition, many financial institutions still depend on obsolete security approaches that are readily compromised. Due to technological advancements, cyber dangers are projected to increase in the next years. Certainly, the financial services business needs more skilled anti-fraud solutions to protect against internal and external threats.
Among the extensively used security measures are keycodes, Voice ID, two-factor authentication, one-time passcodes, behavioural analysis, device fingerprinting, and protective messaging. However, the actual difficulty resides in identifying vulnerabilities in the first place. Therefore, cyber resilience must be acute, efficient, and exhaustive.
Beginning with Bitcoin and other cryptocurrencies, Blockchain technology has spread to almost every sector. According to research by MarketWatch, overall blockchain investments in the banking and financial services industry would likely reach $17.47 billion by the end of 2025.
Using complicated algorithms and encryptions, Blockchain generates a tamper-proof database of transactions that is freely accessible to everyone in the system. Each of the data blocks that are purportedly linked together and secured with sophisticated encryption contains a portion of these transactions.
The greatest advantage of Blockchain technology is in international settlements. It can construct a very cost-effective and possibly transparent global network. Other advantages of blockchain technology include the automation of claim sorting and processing, the streamlining of KYC procedures by financial institutions, quick payment transmission, and asset management.
Biometric Security and Tech
As customers worldwide become less dependent on cash, mobile payments and remote banking are increasing. According to Juniper Research, the total number of online and mobile banking customers will surpass 3.6 billion by 2024. Unfortunately, as a result of digital banking, there is a larger responsibility for client security and seamless experiences.
The use of biometric access control as an alternative to standard PIN and password techniques is a promising development. Before processing transactions, banks may verify clients’ identities using biometrics such as fingerprints, facial recognition, voice recognition, and other biological traits. Many banks have already begun adopting biometrics for staff and customer authentication.
By 2026, it is anticipated that the worldwide market for biometrics in banking and financial services will reach $8.9 billion. As the world continues to move towards a world dominated by digital technology, biometrics in banking will help banks deliver safe, quick, and efficient transaction methods in the future.
AI & Customer Analytics
The combination of Customer Intelligence and the capacity to respond in real-time is one of the most significant developments influencing the financial services business. It is responsible for driving more significant direct income and profitability to the financial institution. With the assistance of Big Data and AI, marketing professionals can simply analyse data and draw insights to provide a tailored client experience.
They just need an intelligent balance between people and robots. Banks are able to comprehend their customers’ ambitions and desires with the aid of data analytics technologies. Then, banks may tailor their goods and services to their clients’ preferences and get a higher marketing return on investment.
Personalisation raises conversion rates, improves cross-channel offers, and fosters client loyalty in addition to increasing income. In the end, banks get a competitive advantage in the market by customising the client experience to their specific financial demands.