Financial Technology(FinTech) is the new technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. it is a new industry that uses technology to improve activities in finance.FinTech defined. Broadly speaking, FinTech is anywhere technology is applied in financial services or used to help companies manage the financial aspects of their business, including new software and applications, processes and business models.
In this article, we will discuss the impact of fintech in banking and finance.
Financial Technology in Banking and Finance
Customer service In the past, a good customer service team was vital for any company involved in finance. Nowadays, chatbots have rapidly become the norm for customers to interact with. An AI which evolves and gets smarter is something which is good on paper, but it both lacks a human touch and also renders a lot of people surplus to requirement. This is becoming a popular tool for banks to streamline customer-facing interactions such as handling queries or directing customers to relevant departments. The use of these chatbots not only improves customer satisfaction and reduces costs but also frees agents in call centers to focus on value addition.
Online banking People would go into town to their bank to withdraw money, transfer funds from one place to another, and sort out their finances. these kinds of premises are rapidly becoming redundant. Online banking is getting more and more sophisticated on a daily basis .you can transfer money or pay for goods with just the push of a button.
Fraud detection by Machine learning Progress in any field is usually a form of disruption, because the existing people and technology are rendered obsolete, and need to be upgraded or removed. The human element of the finance industry is really what’s at stake here. this involves a combination of software and people. Security software generates alerts on the possibility of a fraudulent transaction or a virus attack and machine learning algorithms can leverage historical records to determine patterns and predict the possibility of fraud and attacks before they occur, reducing manual effort.
Omni-channel banking and obsolescence of bank branches are much more than just providing multiple ways for customers to transact. It is about a seamless and consistent interaction between customers and their financial institutions across multiple channels. While multichannel is focused on transactions, omnichannel focus on interactions.studies shows that the adoption of omni-channel banking is driving several banks to reduce the number and size of their branch offices.
Biometrics for stronger security is becoming a convenient authentication method that will occupy an important place in the future of security. Most consumers have experience with biometric-friendly devices, and more businesses are looking toward biometrics as solutions for adding security around access controls, or to increase compliance with internal or industry standards. There is a lot of interest in finding ways to use biometrics such as vocal patterns, irises, thumbprints, facial recognition. to add an extra layer of authentication for transactions.
Blockchain for digital transactions Cryptocurrencies is taking the banking world by storm by providing users with faster and cheaper ways to transact. The distributed ledger system of blockchain leverages stringent controls enabling smart contracts and auditable data. by building inherent trust, blockchain provides the perfect trading platform for securities exchanges. It does this by ensuring transparency, thereby minimizing risk, human errors and transactional fees.