With the year on year growth in the financial sector strengthening due to increasing trade and innovative concepts, technology too has taken a major strike to benefit the concerned sector. The year 2019 did indicate the positive impacts of key technologies that ranged from artificial intelligence, cloud and a lot more.
The growth of digital platforms has surely simplified the networking of financial services. Below mentioned are the vital digital technologies that have transformed the image of financial services to a great extent.
Digital Transformation & Extended Investments
The involvements from non-banking industries like retail and communications have actively shaped the expectations of the consumers from banks & credit unions. With the growing digital mindset among consumers that follows a tech-savvy approach, strain in the legacy bank arrangement is experienced that requires new styles of engagement and enhance digital efforts in a leading manner. Even though the competitive pressures is soaring, financial institutions from around the globe are heavily investing in projects linked to digital transformation.
Danger from Digital-Only Banks
It has been observed that almost a major percentage of organizations from the banking industry have taken comfort in digital channels. The evolution of digital-only players is expected to pose additional challenge to the old-fashioned dominance of customary banks as well as credit unions. As per research studies, the new league of banking providers has effectively confronted the conventional model through the delivery of innovative products and services that conveniently appeal the technologically sound consumer.
AI & Blockchain Leading the Way
Based on a well-examined report by Synechron, the presence of blockchain and artificial intelligence (AI) would continue to unsettle the traditional financial services sector. With the development of AI the focus has automatically shifted to its rational use across sales, investments, marketing, wealth management etc. We can call it a crucial step that is heading from advanced robotic technologies such as predictive analytics and machine learning to actual growth in intellectual computing. Interestingly, the report forecasts that robo-investors might soon become the unified financial technology or ‘fintech’ battleground for wealth managers.
Links to Third-Party Providers for Motivating Customer Focus
With the help of open APIs, different banks and credit unions tend to adapt to significant changes in methods through which they offer CX-based processes. The various fintech companies are turning into prominent thespians in the customer expedition, whereas banks and credit unions do not have any control on the customer expedition. It has been noticed that customers are gradually adopting fintech assistances in order to seek better services, thereby making leaving banks and credit unions with lesser choices to adapt or ultimately fall behind.