The Pandemic has accelerated the adoption of technology by a factor of ten. When economies were forced to shut down due to the virus, technology played a critical role, and it has forever changed the landscape. It provided various sets of tools to keep our work running in all sectors and regions of business. According to McKinsey, companies have accelerated the digitization of their customer and supply-chain interactions and of their internal operations by three to four years.
Especially in the fintech industry, traditional issues and system errors that have been persistent for ages are now being eliminated with various software and technology solutions while providing a successful end-to-end journey for the customers.
With the sector's explosive expansion over the last five years, it has undoubtedly paved a strong path for its clients, giving a more convenient experience while mapping their wants and behaviour.
Here are the top 5 financial upcoming technological developments that might help customers live more efficiently:
Digital payments, InsurTechs, and property management dominated the first wave of Fintech, whereas Neobanks, or digital-only banks, are leading the current generation. Neobanks are typically digital entities with no physical presence. The most essential aspect of digital banks is that they do not require a physical branch; you do not have to wait in long lines or go through numerous procedures.
Financial Institutions with Artificial Intelligence (AI):
We live in a technological age when artificial intelligence (AI) makes life easier for both users and employees. AI-assisted software aids in the development of appropriate business plans for the institution based on the issue or circumstance at hand. As cybercrime, financial fraud, and other similar incidents become more common, manually detecting, tracking, and responding to them becomes more challenging. This is where artificial intelligence comes into play. It can assist in immediately issuing an alert for such vulnerabilities after they are discovered. Furthermore, AI-Chatbots assist in the reduction of repetitive duties such as easy handling.
Although many banks have apps available in the app store to help with monetary transactions, you will still need to visit the bank for certain critical tasks that vary by bank, such as opening an account, updating key contact information, and so on, if the bank's app does not allow it. We will be able to watch the digitization of banks using the latest technology, where every transaction or step that we take can be done online via web or phone apps. For these tasks, there would be no need for physical presence. With the rise of contactless payment methods, digital banks will be the most important trend in the fintech industry, providing customers with the best possible experience.
These developments will propel the financial industry forward, offering customers with frictionless experiences and unprecedented accessibility. We will see more new opportunities develop in the fintech sector as technology evolves, affecting the way firms are conducted and handled.