Some of the largest banking institutions and other huge financial players are playing catch up with new advances in software developments and technology that have consistently been introduced by fintech startups. This in turn is rapidly changing the global financial landscape. The explosion in financial technology (fintech) has touched every part of the globe and is changing almost every aspect of the financial sector, including financial advice, payments and transactions, customer service, lending and even insurance. A study published by Fortunly shows just how disruptive fintech has been to the financial ecosystem with the following statistics:
- 85% of banks have made the digital transformation a business priority
- 3 out of 4 global consumers are using fintech services for money transfer
- 77% of financial institutions want to innovate more
- 60% of traditional banks would team up with fintech startups, and 82% expect these partnerships to expand within the next 5 years
With all these changes in a digital era where customer focus is in the driver’s seat, what will the future possibly looks like for the financial sector?
1.Customer Service Chatbots
Even for banks chatbots are growing rapidly in popularity to streamline the customer interaction process, something that’s known in the industry as conversational banking. Finance agents benefit greatly from the use of these chatbots as they spend less time answering questions and are focusing more on the underlining tasks for the customer. The main advantages of using a chatbot is to offer speedy response times to simple inquires, automating data collecting and guiding customers to the right web pages or departments to get their questions answered as soon as possible.
From the customer’s viewpoint, they benefit from this software because these bots are available 24/7 and many times can point a customer to the answer he or she is looking for, increasing customer satisfaction.
2. Automation of Financial Advice
The rise of Robo-advisors is here and taking on the world of financial advising, imposing a major threat to traditional operators. The competition between real-life assistance and Robo-advisers is here to stay but the automated technologies offer a compelling solution. These automatons are in the form of direct and automated messages through live chat and can be built around specific customer behaviors, which can lead to power sales and customer engagement.
The future of Financial Advice most likely will be a mix of human and machine. The automation will deal with a range of processes, from data-driven insights for a more personal-oriented service to the delivery of basic advisory. Meanwhile, human advisors will be left with more time to build relationships with clients and deliver a more comprehensive service offering.
3.Transactions with Blockchain and Cryptocurrencies
Finally, a big opportunity for the finance sector lies in the area of Blockchain technology. A blockchain is a list of records, called blocks, that are linked using cryptography and are public so everyone can see with complete transparency. Cryptocurrencies have also been disrupting the banking sector for some years now offering their users a quicker and sometimes cheaper way of completing transactions.
We have yet to see this wave become mainstream and impact your everyday finance transactions but Blockchain provides a solid trading platform with increased transparency and users benefiting from the transferability of money, saving time and reducing costs.
Bassano, Caterina. “5 Ways Fintech Is Reshaping the Financial Services Industry.” Business 2 Community, 20 Aug. 2019, www.business2community.com/finance/5-ways-fintech-is-reshaping-the-financial-services-industry-02228834.