The financial services industry has been rapidly changing with advances in technology, and many of the trends that have emerged over the past year are likely here to stay. To remain relevant in the financial services landscape, organizations should seek to understand the value and possibilities of using these emerging technologies to improve business functions.
25% of small and medium enterprises have adopted financial technologies globally, and this number is steadily rising. Financial services organizations are looking at developing technologies to give them an advantage and differentiate them from the competition. These trends serve to improve a variety of business priorities, including security, operation costs, HR functions, and data analysis. From AI to automation, leveraging new technology in financial services right now is vital to the future success of organizations in the industry.
Emerging Financial Services Technology Trends
To achieve desired business growth and stay ahead of the competition, organizations should strive to understand and utilize emerging trends in financial services. The largest and fastest-growing trends to be aware of are outlined below.
Artificial Intelligence (AI): AI allows financial services organizations to perform business functions such as identifying data patterns, managing risks, and detecting fraud. By reducing human-made errors in compliance reporting, AI enables financial services organizations to maintain accurate records and data. Similarly, AI can quickly analyze large pools of data to detect fraud or suspicious transactions that may have previously been lost by older, less accurate systems. It also helps improve the customer experience by allowing customers to customize financial products and services, receive budgeting advice, or perform savings analyses. Additionally, AI makes remote and hybrid jobs easier with automated administrative work, improved online communications, and easier troubleshooting with tools like AI bots to quickly answer questions and solve problems.
Machine Learning: A subset of AI, machine learning works by finding meaningful insights from large data pools to provide accurate results. Of the financial services technology trends, machine learning has a variety of uses, including market prediction, financial monitoring, transaction security, and customer data management. Using machine learning in finance leads to lower operational costs due to process automation and reinforced security.
Blockchain: While blockchain is mostly used in the context of recording cryptocurrency transactions, it has various other uses that may prove beneficial to organizations and has the potential to be leveraged as a powerful technology in finance. Blockchain ensures data security, helps make safer payment transactions and increases transparency. It also has uses related to digital payments, shares trading, or one-time registration.
Mobile Banking: Customers want to access information that is valuable to them anywhere and at any time. Mobile banking includes features like banking apps, 24/7 online customer support, fraud alerts, and bill payment alerts. Improving the customer experience is a huge priority for financial services organizations currently, and mobile banking gives customers the independence they desire with the information that matters. Additionally, giving customers the power of self-service frees up internal teams to focus on other initiatives.
Automation: Automation technologies like robotic process automation (RPA) are at the forefront of the financial services landscape. RPA allows organizations to automate tasks similarly to how they would be completed by a human being across applications and systems. RPA revenues in banking and financial services are projected to reach $1.2 billion by 2023. Automation increases efficiency and effectiveness, performing tasks like risk assessments, HR activities, data analysis, and many other administrative functions. Automation can be combined with other technology trends such as AI to improve HR, payroll, and other systems. Automation Anywhere helps organizations improve compliance, reduce workload, simplify payroll, and give internal teams more free time.
Harness the Power of Ongoing Innovation
The number of technological trends emerging from the financial services industry is accelerating, and organizations who want to be forward-thinking should look for ways to leverage these advances. Intelligent, innovative systems like AI and RPA are continuously improving and evolving, helping identify opportunities and customizing products and services. Organizations who embrace these new technologies and find ways that they can help optimize performance will be well-positioned to address future challenges.
In addition, with the growth in popularity of remote work, new technology in financial services provides benefits that would allow remote and hybrid workers to improve productivity by focusing on the work that is important. With automated administrative work, better communication, more accurate reporting, and easier troubleshooting, emerging technologies will continue to adapt to this new way of working. Machine learning and AI sustain remote work and even help employers more efficiently conduct talent recruitment and sourcing.
To learn more about how your financial services organization can utilize emerging technology trends, check out Collaborative Solutions’ Financial Services Industry page.
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