This investment will take into dramatic time and cost savings and improvements to service offerings from financial institutions. Here are the top five fintech trends everyone should be watching in 2020 because they will impact anything that involves money.
Hyper-personalization via big data and AI
For many years, marketing experts embraced the benefits of personalization to attract customers and keep them loyal. Currently, big data and artificial intelligence has helped to process, store, and drive insights from the information, hyper-personalization is possible on an unprecedented scale. Financial institutions have information about their customers’ behavior and social and browsing history. AI facilitates real-time omnichannel assimilation of these insights to provide a personalized one-to-one marketing experience for their customers when the information is highly relevant and useful.
Blockchain is an individual immutable computer file that is decentralized and distributed, is disrupting the financial institutions. Blockchain can make things highly efficient in the financial services industry.
Since fraud and identity theft cost the financial institutions billions of dollars annually, blockchain can save the industry from witnessing these significant losses. Financial institutions will use blockchain for smart contracts, identity management, digital payments, and trading shares.
Robotic process automation (RPA)
In 2020, robotic process automation (RPA) will continue to impact financial institutions to help them be more efficient and effective and help ensure they meet federal and state compliance requirements. Today’s advanced RPAs don’t have to be programmed explicitly to perform tasks; they can observe what the humans do and then automate or suggest improvisations to processes.
This consists of processes such as customer onboarding, risk assessments, verification, security checks, data analysis and reporting, compliance processes, and most other repetitive administrative activities.
Chatbots are supposed to interact with the customers of most of the banks and businesses. By eradicating the human involvement in these interchanges, productivity, and speed improvements. According to one report, financial chatbots save more than four minutes on every interaction.
This is a booming area because of the progress made in natural language processing and speech generation.
5 FinTech Trends to Watch this Year:
The finance sector has been disrupted by innovative technology, and fintech has made managing finances easy and accessible with just one click. Banks and other firms are also utilizing the latest technologies to enhance customer experience and simplify their processes and scale services. By leveraging artificial intelligence, blockchain technology, and data analytics, the financial industry can be ready for a transformation.
Here are five fintech trends to keep an eye on in 2020:
More Bank Branches will Undergo Digital Transformation
Banks are coming up with new approaches to improve the branch experience as mobile banking is gaining popularity. Implementing digital signage brings more interactive experience to branch visitors, while mobile devices help with tasks to move customers through the process efficiently and quickly.
As customers lean toward online banking, branches take advantage of the technologies to build a better in-person experience.
Use of Artificial Intelligence in Finance will Expand
AI and predictive analytics have been around to assist the financial industry. With the digitization of financial sectors, AI aids chatbots give informed financial advice, helps in fraud detection, and guides in customers’ investment.
Financial Services Firms Increase their Use of Data Analytics
With the increasing growth of the Internet of Things and other digital devices, more information is available for financial firms to monitor and analyze. With all the information gathered from swiping credit or debit cards, businesses can identify fraud or breaches and examine the risks.
Automation will take over Financial Services
Automation is cheap, accurate, and efficient and can quickly get work done. Financial firms are implementing bots to automate internal tasks such as responding to IT tickets or accounts receivable. Technologies like RPA have created more productivity and reduced cost as it takes up more mundane or complex tasks and allows staff to focus on more important issues.
Blockchain will be a Key Security Solution
Blockchain can be utilized as a security solution with various points of verification built into each transaction. This multipoint verification protects the information being transferred and develops a detailed record in each step. This is a safety measure, especially for customers who want to move large amounts of money.
Blockchain technology makes peer-to-peer transfers in a decentralized network with no middle man to charge a fee, which helps saves money.