For any industry to sustain itself in today’s world, implementing digital strategies has become indispensable. This holds particularly true for the financial services industry. The good news is that digital transformation in financial services has already begun, and we’ll likely see more and more innovative technologies underpinning banking and financial institutions in the coming years. Keep reading to learn about the latest digital transformation trends in the financial services industry.
Big data and artificial intelligence
The combination of big data and artificial intelligence is a revolutionary digital strategy that is shaping the future of banking and financial services. The technology helps institutions process, store, and drive valuable insights from the data they gather from their customers’ activities. Big data and artificial intelligence allow institutions to create a highly personalized experience, helping businesses attract and retain customers.
Blockchain is a fairly new technology that is becoming increasingly popular in the financial services industry. With blockchain technology, all transactions are permanently stored in the blockchain network, providing the highest level of transparency and security. Nobody can tamper with these transactions, which nearly eliminates the risk of error and fraud. Besides security, the technology is being explored for use in a wide variety of banking and investment applications.
The idea of digital or mobile wallets is convenient for most people. However, some people avoid using these services due to legitimate security concerns. And this is where biometric technology comes in. Fingerprint and face recognition technologies ensure that no one except the rightful owner has access to their funds. With the technology largely in place already, both buyers and sellers prefer using mobile payment over cash and checks.
Cloud technology is on the rise in the banking and financial services industry. Cloud computing offers institutions a cheaper way to store and analyze enormous amounts of data. Plus, it reduces the roles and responsibilities of the information technology (IT) staff, giving them more time to create value for their organizations. Some reports estimate that medium-sized businesses save considerably on IT spending by migrating to cloud computing.
Robotic process automation (RPA)
RPA handles laborious and repetitive office tasks, such as customer onboarding, security checks, data analysis and reporting, and risk assessments. The technology has proven to be highly profitable for financial institutions, as it boosts productivity and improves efficiency. It also reduces the risk of human errors significantly.