The financial sector is the foundation and backbone of an economy. It has the potential to accelerate the growth of a developing country and fastens its journey to become a developed economy. Technology has been playing a super significant role in the finance industry. In fact, technology has now become an extensive element in the finance industry. It is reshaping, reviving and revamping the entire finance sector.
The most important technology developments lined up for 2020 are quoted as under:
1. FinTech driving business plans:
The new players have been struggling for quite some time to make it quite big in the financial sector. Evolution of technology and strengthening of regulations has brought about a major change in the market. This is in accordance with customer behavior and purchase pattern. Many competitors have provided an edge to grow stronger. It is assured that the future of banking is revolutionizing. Latest technologies will mark newness in the financing banking domain.
The Fintech supporters have been staying positive to understand technology and implement it too. Most startups today are extremely bent towards technology and its convergence into processes. Today, everything can be managed well digitally from mobile to insurance. In a recent study, it has been revealed that a good quarter of businesses will be wiped out by a few FinTech companies.
2. Sharing economy shall now be an important part of the financial landscape:
The year 2020 hopes for excessive digital banking services to conduct transactions peacefully. No one wants to turn to banks now. The sharing economy is bringing about revolutionary changes to the financial industry. This domain has introduced services for cars, taxis, and hotels, etc. Using technology will be met up with customer requirements via banks. This is an easy step for instant solutions.
3. Blockchain will bring a surprise:
Many commercial businesses tried to misuse technology. However, blockchain brought about funding and innovation to the industry. This pumping of funds into blockchain will soon impact retailers and merchants. This will of course institutionalize. So the expectation is for the funding bit to increase with times in hand, and give out more relevant results. Blockchain shall soon become an instrumental part of the system and support operational infrastructure.
4: Digital becoming popular:
Years ago, financial institutions were operating on electronic business or at least trying it. And how it’s all becoming digital. So now digital is the new normal. Internet and technology are rapidly increasing, driving efficiency in the investments business too. Here, customer experience and functional efficiency affect brand data and analytics. A similar mechanism is applied to payments, retail banking, insurance, and wealth management. Companies are consciously moving towards capital markets and commercial banking activities.
5: “Customer analysis” is the best parameter of growth and profitability:
It’s strange but we do not even know what customers want. It’s quite unfortunate but then customer scrutiny can get real help. Customer surveys and analysis can be quite comforting to accommodate financial technology. Use of technology is definitely not limited to financial institutions. However, the finance domain is majorly taking over.
Smartphones and online transaction with secure technology has been providing personalized banking experiences and this wave of financial technology has taken toll above and beyond.
Today, fintech encompasses everything from customer service chatbots and machine learning algorithms for fraud analytics to blockchain for digital transactions and biometrics-enabled authentication. Increasingly, retail banks are being upstaged by new fintech players that offer customers all of this and more, making it imperative for traditional banks to make strategic investments in innovative technologies. This will help them upgrade their operations and deliver seamless services for higher customer retention.