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How Technology is Revolutionizing the Financial Services Industry and Improving the Customer Experience

Technology has become an inextricable part of every industry, and has revolutionized the financial industry. Advances in fintech have improved efficiency and effectiveness for both the industry and customers alike. Fintech based on artificial intelligence and machine learning is transforming the financial industry, from banking, to lending to investing. Let’s take a look at six ways that technology is improving financial processes.

Innovating banking payment processes

One of the biggest disruptions technology has made in recent years was in the banking industry, as the need for the integration of online payment and banking solutions prompted industry leaders to completely rehaul the existing IT infrastructure. Enabling online banking and secure payments is not only an IT problem and a cumbersome challenge, but also a legislative nightmare in countries that are yet to fully embrace the digital revolution. Luckily, the concept quickly caught on and now online banking is a part of the global banking system in every country.

Clients are now able to assume control of their complete financial structure with the push of a button on their smartphones, and make and receive payments with a compressive overview of every transaction. But beyond payments and transfers, online banking allows customers to communicate with their banks and buy services and products, change their plans, and more without ever making a trip to the office.

Improving investment opportunities with technology

A tablet with graphs adjacent to papers displaying data. A pencil sits atop the papers.

The fintech boom has opened doors for aspiring investors to venture into the market in a safer and more effective way than ever before. There is no shortage of direct and indirect fintech solutions that make an investor’s life easier and help with portfolio diversification while minimizing the cost of entry, reducing risk, and scattering investments across numerous lucrative assets.

Online trading platforms range from those with comprehensive features and support for novice and experienced investors alike. Blockchain has enables completely new investment options, such cryptocurrency, all the way to full mobile integration and big data management for better forecasting and decision making. There is no limit to the potential of AI-based technology when it comes to the investment arena, and smart investors know how to leverage all of these innovations to maximize the potential of their investments.

Monitoring, comparing, and managing your credit score

When it comes to personal finance, technology has made it possible for the individual to not only run a quick credit check to verify their financial standing and borrowing potential, but also compare multiple credit scores in order to gain a comprehensive overview of their financial situation. This means that individuals can apply for loans faster by expediting the credit check process, and also leverage this information to improve their credit score and increase their borrowing potential down the road.

In the pursuit of better creditworthiness, it is essential that the individual has a comprehensive understanding of their financial situation and current credit score, but more importantly, they need to know how to leverage this information to improve their position. AI-driven financial solutions can provide guidance along this path, especially with the rapid integration of AI financial advisers and online platforms.

Introducing AI-driven financial advisers

Close-up of a robotic hand reaching out

Humans are becoming increasingly reliant on technology to resolve all of their issues, including financial. This is certainly a good thing, because AI-driven solutions have a very low margin of error, meaning that they can offer financial advice that is accurate and sustainable. While the position of the human financial advisor will most likely stick around for a few more decades, it is interesting to see just how much organizations are investing in the advancements of AI-driven financial management.

For consumers, AI financial managers, such as those employed in online banking, can help the customer make smarter financial decisions. The same can be said for aspiring investors, as AI-driven solutions that collate large amounts of industry data can produce near-perfect reports and forecasts that will guide their decision-making process in the right direction.

Using technology to minimize financial risk

All of the aforementioned benefits of technology feed into the concept of smart risk management that has been taking hold in organizations across the globe. Artificial intelligence is making it possible to manage finances to minimize risk by taking a more proactive approach, instead of being reactive to industry and economic trends. This means that they can make more calculated decisions and investments into their organizations, and ensure better long-term ROI on every investment.

Monitoring emerging trends as a business initiative

And finally, it’s important to note that companies are increasingly initiating trend monitoring as a crucial part of growth management. In other words, technology is constantly changing and evolving, and companies need to stay on top of the latest developments in order to be the first to integrate new solutions into their processes. This will allow them to develop a competitive financial advantage, minimize expenses, and make smarter, better informed investments into their organizations.

Technology has had a major impact on the world of finance in recent years, but this is just the beginning. In the years to come, AI-driven fintech solutions will continue to revolutionize the world of finance for both financial institutions and their customers.

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