Will technology revolutionize finance?
Although it’s still early days of the Fourth Industrial revolution, the tremors are almost deafening. Technology is transforming almost everything that comes in it’s way and the financial industry is having nightmares.
For years financial corporations have mastered the art of illusion by charging consumers with provocative and unnecessary money in the name of service fees, but sooner or later this bubble was going to burst and as expected, through technology. Innovators and these fintech’s are threatening to disrupt the whole financial establishment altogether, and this is just the start.
Here we look into the 5 reasons as to why today’s fintech could change the financial services of tomorrow:
1. Platform based and user friendly:
Companies like Uber and Airbnb have proved that marketplace companies are bound to grow exponentially. This is the same inspiration behind the idea of fintech companies. Connect the buyers to the sellers directly hence providing authenticity and comfort to both. Queuing in lines is something all of us can relate to and that’s something the fintechs have kept in mind. Through Peer-to-Peer lending platforms like our own, availing personal loans while waiting in line for a cup of cappuccino is a common sight. That’s just one way in which fintech works to improve consumer experience. As essentially it’s a marketplace, there’s an ease of operation which cannot be experienced through traditional financial institutions.
2. Artificial Intelligence:
A drive towards incorporating AI in their systems, fintechs are moving into the future. Innovators in these corporations, are using their skill sets to find new ways to minimize manual involvement and hence further improve the authenticity of their platform and app. What better way to do that then AI? Though finance is yet to take full advantage of this massive technology, steps are been taken in the right direction towards an automated future. AI along with machine learning will not only better the user experience but also appeal to the youth who are often tempted with such technological innovations.
3. Customer experience:
Being a marketplace, there’s bound to be a trust issue with the consumers and fintechs understand that very well. Their customer centric approach is working well with the consumers and there’s always more emphasis on consumer solution ideas than on fancy innovations. AI based chatbots are being implemented to better understand customer experience and needs. For instance, an AI bot will be able to better understand a customer’s spending habits by tracking and understanding their credit card transactions.
Data breaching is not so common anymore no matter how annoying it is. Banks argue that technical glitches are inevitable and something that must be just ignored. Fintechs are much more superior when it comes to dealing with such scenarios and their platforms are built to combat that. More money is invested in innovations involving security and data protection which banks are trying to replicate too.
Bitcoins, a currency related application of blockchain is already turning everyone’s head around though, it’s application in the financial sector is much more intriguing. The decentralised ledger that blockchain provides is already being tested by fintechs for transformative applications. Once mastered, the need for an intermediary will be eliminated altogether leading banks closer towards their doomsday.
Experts say technology could totally wipe out traditional financial services and its hard to make a case against it. There could be more to be read through but the early signs are promising enough. As this exciting battle between technology and the total annihilation of banks rumbles, there’s one thing for certain : the consumer couldn’t dream of a better day!