Tech innovations are changing our lives rapidly – and business is no different. Financial technology (fintech) is one of the fastest developing areas and it has the potential to disrupt many tried and tested formulas in the financial industry. With around 26,000 fintech companies operating around the world, there are clearly going to be significant developments in the future. Below, we explore five technologies that will change the way we do business.
1. Blockchain
Blockchain is known mostly as the technology behind Bitcoin and other cryptocurrencies. It acts as the digital infrastructure that safeguards crypto transactions by forming a decentralised public ledger to record transactions. However, it could have many applications outside of cryptocurrency.
The fintech industry is currently exploring other uses for blockchain and although there will be many challenges to overcome to bring the technology into wider use, its potential is clear to see.
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2. Cyber security
Whether we like it or not, much of our personal data is stored online these days. This has increased the incentive for hackers to try and access confidential information, and in turn, cyber security is becoming even more important. It’s a constantly evolving battle: as hackers expose new weaknesses in security software, experts will devise innovations to solve the security issue.
Cyber security in the fintech sector is looking towards blockchain and other decentralised systems to cope with the rise in hacking.
3. Remote communication tools
Even now the pandemic is becoming a less significant issue, work from home is here to stay. As a result, for many companies to function optimally, they need the latest remote communications tools to encourage teamwork and boost productivity. By having the most effective remote communication methods, businesses can attract and retain new clients too.
Much of the technological advances are focused on making communication more engaging and seamless for all parties.
4. Machine learning
Machine learning is one of the most popular areas of fintech for many businesses. By utilising this technology, businesses can boost their customer service by using AI chatbots. These robot advisers can instantly inform and guide customers and clients on your website, without the delay and error that accompanies human interactions.
By using big data and machine learning, these chatbots can develop ever more sophisticated answers and responses. Meanwhile, machine learning can also be used to spot complex patterns in data that the human eye can’t. This can be deployed to quickly identify fraud and money laundering for banks.
ML programs can also be integrated with advanced infrastructure elements such as NLP models to analyze and track data points more efficiently. It will help increase decision-making accuracy within businesses and allow enterprises to create improved products and services. Adding KNN algorithm systems would ensure that all information collected is stored and analyzed efficiently to minimize the chances of vulnerability or bias.
5. Open banking
Open banking promises to make banking a better experience for the consumer. Open banking refers to the process of sharing your financial data with third parties in return for new services and modifications to make existing information better. This can be used to budget more effectively or to automatically pay bills when they arise.
If this seems like something you could benefit from, then it’s well worth exploring open banking platforms on the market today. By adopting fintech early, you can quickly enjoy the many benefits on offer.
The way we do business is changing rapidly. Fintech is streamlining the industry with innovations every year. And by keeping an eye on the list above, you should be all set to calculate which technological advances you could benefit from.
