AI is a technology trend that is rising in almost every industry, including banking and financial services. Like many industries, banking and financial services are investing in AI to create long-term future savings. For example, one of the most common AI implementations is an AI chatbot. AI chatbots are set to revolutionise customer service by communicating with customers and answering customer queries. This could potentially eliminate the need for a bank to have customer service employees, saving them significant personnel and HR costs.
The popularity of mobile banking has risen in the last few years, as banks have seen the demand from customers to be able to manage their money on-the-go. AI allows 24/7 online banking access for consumers by completing and conducting essential banking operations.
Another of the biggest issues banks and financial businesses face is identifying and preventing fraudulent activity, and fraud detection. AI could disrupt current fraud detection processes by enhancing financial security through its advanced fraud detection capabilities. For all the reasons above, it’s not hard to see why AI is set to disrupt and revolutionise banking and financial services in 2020.
2. Robotic process automation
Robotic process automation, or RPA, similarly to AI, is set to cause disruption to financial and banking services due to its potential to lower operational costs and remove human error. RPA is able to complete repetitive tasks which would previously have to be completed by employees and can be labour intensive. By enabling RPA to complete such tasks, human employees can focus on more skilled work and everyday tasks can be completed much more efficiently without human intervention.
RPA is often more effective as robotic processes do not need to take a break or take holiday days and they can be programmed to complete tasks accurately and efficiently, removing any possibility of error. For example, an insurance company may invest in RPA to speed up its claims process. RPA can screen applications more quickly than a human and then progress or reject claims.
3. Big data
Big data is a large set of data that can be used and analysed to reveal patterns and finance trends, e.g. consumer buying habits. For years, banking and financial services have accumulated big data through monitoring the transactions, transfers and ATM withdrawals of their clients. As they have access to so much data, banking and financial services are investing in business analytics to analyse and safely store their big data. If the financial industry is able to accurately monitor and analyse this data, they could draw actionable insights. For example, with an accurate picture of customer spending habits, fraud will be more easily detectable as anomaly spending can be detected instantly.
Similarly, big data analysis can help identify market and banking trends, allowing financial institutions to make more profitable business decisions, e.g. improved product cross-selling. NMIS (network management information system) can help you handle your data, and ensure you are compliant with data regulations.
4. Cloud computing
Cloud computing is a system that is reliant on shared resources and is an alternative to having local or dedicated servers. Cloud computing technology is used to store data and delivers services such as data analytics, software development and more through an internet connection. Often a business or individual pays for as much cloud storage as they are currently using, as the technology is incredibly scalable. Many banking and financial services are opting for cloud computing in 2020 as it is more cost-effective than using an independent or shared server. As you only pay for the storage you use in cloud computing, controlling outgoing costs is much more easily managed.
Cloud technology is also often more secure than servers, helping banks and other financial companies, such as insurance companies, complete secure online payments and transfers without interference from those with malicious intent. Cloud technology, such as cloud inventory and audit software, can be accessed from anywhere in the world at any time, allowing financial companies to always operate at maximum efficiency.
The above fintech trends are just some of those set to disrupt and improve the workflow of banking and financial services in 2020. If you’re interested in introducing any of these new trends into your business, Opmantek products can integrate and manage new technology with ease, ensuring minimum disruption for your business. If you’d like to learn more about our innovative products, such as our Opmantek Virtual Appliance, a member of our expert team would be happy to get in contact with you.