Fintech, according to many, is a buzzword, but experts think otherwise. Fintech, for those who popped in late, refers to financial technology. It wouldn’t be exaggerating to say that fintech or financial tech has changed the entire industry forever. A simple example of that would be the banking sector. Today, most of the tasks in the banking sector are automated, and most of us have stopped visiting local branches altogether, simply because most of the things can be completed online, either through respective online banking sites, or through apps.
In this post, we take a look at how fintech is shaping the financial sector and what it means for businesses and customers.
Graphing the shift
Fintech was initially just about automation and minimizing some of the traditional tasks and jobs. This came in form of shift to web-based services, software, and of course, Software as a Service. It was just a matter of time before everything we knew about trading in stocks and dealing in banks got online. Today, all financial institutions will have a mandatory website, and most of them also have apps, which promise to bring all services within the reach of mobile and handheld devices. Initially, it was all about the backend operations, but with new tech, it is possible to offer end-to-end solutions and services to customers.
The new technologies
Fintech is rapidly taking the advantages of data mining, and the new technologies that are coming up are in sync with the existing threats that must be addressed. It is not surprising at all that artificial intelligence has taken the front seat in implementation, and companies are spending a considerable amount of money in understanding what’s called “predictive behavioral analytics”. How consumers are interacting with services is being studied, so that the guesswork in innovation can be minimized. In years to come, there will be considerable focus on customer service technology, so as offer better services within reach. How machine learning will evolve is something that businesses and financial services need to watch, says expert Nadeem Shaikh.
It is not surprising to come across threats and possible challenges that come in implementing some of these ideas. What also needs attention how these solutions are utilized considering the regulatory aspects that matter. Today, financial institutions are constantly grappling with changing trends in fintech and how to adapt to these changes, without going overboard with the costs that must be checked, as well.