Although, some financial services may still be in the dark when it comes to Digital Transformation, most businesses have realised the potential of this practice and decided to act upon it. In the past few years, the landscape of the financial sector has changed dramatically; development of new technologies led to constant evolvement, transformation and in some cases – even disruption of businesses within this sector.
There’s no doubt that, following other industries, financial services have been increasingly moving online, making waiting in long queues and filling out enormous amount of paper work rarely seen these days.
So, let’s have a closer look how new technological advances can further influence the way financial sector will operate and how businesses should adopt these FinTech trends.
According to the report released by Trustly, the Swedish FinTech company, 63% of UK customers pay their bills online, 57% move money between accounts, and 45% use it to transfer money. People do everything online now and managing their money is no exception.
Nowadays, with constantly increasing number of online users, there is no need for physical banks. Almost 2,900 branches of different banks have been closed in the past three years, and that is an enormous number! Major banks have realised that every service they offer to their customers, they might as well provide online with the same security and increased convenience. This has opened up alternative ways for people to budget and pay that are often faster than using a traditional bank. Moreover, when talking about financial management, internet has introduced new options for saving, lending as well as investing money.
2. Blockchain Has Become a Reality
As previously mentioned in one of our past articles, Blockchain market is expected to grow over $60 billion by 2024 mainly because more companies adopt distributed ledger technology. Blockchain is a revolutionary decentralized technology that can store and exchange data for cryptocurrencies.
It forms a distributed database with a digital register of the transactions and contracts. Systems using Blockchain make it almost impossible to forge any digital transactions, whatever it may be: money, ideas, copyrights, or royalty fees. Cheaper to maintain, significantly less number of errors and minimal processing delay – Blockchain technology is likely to influence and transform the financial sector even more than it already has and it definitely shouldn’t be ignored.
3. Customer Intelligence Is a Must
Just like in any other industry, customers of financial services will increasingly expect financial providers to not only identify and understand but most importantly anticipate and predict their needs and preferences. And those, who fail to meet these exceptions will unfortunately lose great number of valuable customers to their more digital competitors.
Banks need to realise the potential of gathering and analysing information regarding customers, their details and activities in order to build deeper and more effective customer relationships and improve decision-making process. Customer intelligence can benefit financial sector by e.g. utilising systems that recognise language preference at ATM’s or on their online interface. Each piece of data has a meaning, and only when analysed correctly, it can provide businesses within financial sector with actionable insights that can result in improving customer experience as well as predicting the revenue growth and profitability.
4. AI Can Really Help You
When deployed into financial services, AI can have two major benefits for businesses.
Firstly, employing machine learning can enable organisations to detect fraudulent activities or any potential hacker attack spots in FinTech software. Moreover, mentioned algorithms can be used to automate financial reporting, what will result in reducing processing time and possibility for human error. Also, implementing deep learning algorithms can help in quick and effective deriving of unexpected insights from Big Data and gaining competitive advantage.
Secondly, with constantly increasing customer’s expectations, the need for more advanced financial consulting is growing rapidly. So called robo-advisors can become the right solution for financial companies struggling with their customer service. Robo-advisors, similarly to chatbots, will provide customers with an automated financial planning services driven by AI algorithms. It will result in more solid, better, and quicker financial advices. Moreover, FinTech robo-advisors will also enable younger and less financially savvy people to start investing their money.
5. Cyber Security Is a Priority
In the financial industry, the barrier for hackers is relatively low as for some organisations it can take even 9 months to realise they have been breached. And maybe for this reason cyber security has become a growing concern not only for providers but also for customers. Thus, it comes as no surprise that cyber security will be a top agenda for plethora of financial organisations in coming months and years.
Of course, earlier mentioned Blockchain will have a great role to play it improving security. But it will not be the only solution as constantly evolving technology will provide new ways to digitally spend, manage, invest, and protect money and investments. And when these new ways will come to life, organisations are ought to act fast by transforming their businesses, their processes and the way they operate.
B60 is a global leader in delivering Digital Transformation and Technology Development and works with ambitious firms in the U.K. Europe and USA across multiple sectors. Since 2012 B60 has been embracing digital change by utilising our unique operating models, frameworks and methodologies to truly drive innovation and change from within our clients businesses.
If you’d like to discuss with one of our experts on how you could successfully deploy Digital Transformation and Technology Development in your business drop us an email at firstname.lastname@example.org or alternatively call us on 0121 405 0270.