Essentials Technologies that will Transform the FinTech
29 November 2020
29 November 2020
Fintech is the combination of finance and technology, two of the largest institutions into one single discipline, aiming to improve the activities carried by financial organizations. Although fintech is a fairly new field, which emerged in the 21st century, it has a huge impact on banks and other financial institutions.
As fintech solutions have now become a daily reality for these institutes nowadays, we studied new fintech projects and innovations to find fintech technologies that transform the industry.
Regulatory technology or Regtech is using fintech software innovations and automated solutions to manage regulations, monitoring, and reporting. Regtech is helping financial firms to move away from the concept of ‘big data’ to ‘smart data’. While ‘big data’ can result in enormous amounts of data everywhere, out of which it will be difficult to get the implicit meaning, Regtech can help the service providers to be more agile in fulfilling regulatory obligations and dealing with regulatory restrictions.
Artificial Intelligence is becoming more and more popular since it’s first use in the fintech industry. The unexpected potentials of AI attract investors to financial institutions. AI works best with a combination of big data and management solutions. It helps financial companies resolve human problems by improving results through various means. AI analyzes the performance, creates insights, and automates organizational processes.
Machine Learning or ML, analyzes common behaviors and patterns to detect any unusual behavior or fraudulent cases. It analyzes a company’s performance and scans investment records to figure out any potential threats or future developments. ML is also used to create a smart client profile.
Internet of Things makes it possible to connect the financial database to smartphones and send data directly and quickly.
Blockchain has been used in many banks nowadays for secure transactions. Blockchain transactions are encrypted, they cannot be manipulated or altered. This technology enables the distribution and copying of digital data across different nodes, which makes it easier to detect any malfunction. Any wrong changes or modification will alter the hash connection of the data, it makes hacking difficult. Also, organizations can use one universal currency instead of country-wise money through tokenization.
Many organizations use robotic processes to complete simple to complex actions to reduce the number of human resources. These actions can be, collecting statistics, calculation numeric value on the company’s performance, summarizing larger documents, managing regulatory documents, and controlling emails through AI and chatbots.
Conversational banking can be used to answer the most commonly asked questions by the customers, like, how can they find their nearest ATM, or how they can regain their lost card. It saves a lot of time for institutions and the rapid answer will make clients happy. Chatbots can be used to take the clients through the process of registration and other account-related queries along with providing financial advice about budgeting, and taxes.