4 Top Fintech Technologies That Are Impacting the Banking Industry

Fintech, also known as financial technology refers to the application of cutting edge innovations to transform finance by enhancing business operation and delivering improved customer service. Financial technology also involves business-related software, services, and business institutions which provide advanced solutions to improve the efficiency of financial transactions. Take a look at these four top fintech technologies that are impacting the banking industry right now.

1. Big data & analytics

Fintech companies have their eyes fixed on big data because they know that it’s one of the biggest things to happen in the world of finance. The top leaders in the business world today are companies which invest in big data and analytic tools. When fintech companies are able to collect the right data and gain relevant insights, they can meet consumer preferences, develop investment strategies, track consumer expenses, and perform predictive analysis. With predictive analysis, for example, financial service companies can accurately determine the behavior of their consumers by making use of previous data to extrapolate into the future. All in all, the pools of big data mined by fintech companies can allow them to formulate profitable marketing strategies and also detect fraudulent activities.

2. AI & machine learning

At the heart of the fintech revolution lies artificial intelligence and machine learning. These tools are playing huge roles in the transformational shift to the fintech revolution, and they will continue to do that moving into the future. Some applications of artificial intelligence and machine learning are credit scoring, compliance and regulation, detection of fraudulent transactions and management of wealth.

3. Automation

Apart from the mechanical robots in factory assembly lines, robots also exist in fintech companies. Robotic process automation (also known as RPA) involves the use of financial robots to take over manual and repetitive tasks in the financial sector. These allow financial institutions to streamline their workflows, increase efficiency, and also reduce workload. As it stands now, banking automation is something that’s modernizing the financial industry. While there are downsides to talk about, including security and lay-off of bankers, automation has come to stay because its advantages speak for themselves. Thanks to automation, banks can digitize their requests processes, create smart forms, manage assets, generate real-time reports, and improve their customers’ satisfaction. The following points further summarize some applications of automation in financial companies:

  • Statistical analysis
  • Collection of data
  • Regulatory compliance
  • E-mail marketing and chatbots
  • Management of transactions

4. Blockchain

As a public digital ledger book, blockchain has now become the bedrock of popular cryptocurrencies such as bitcoin (BTC). When Satoshi Nakamoto pioneered the idea of bitcoin and cryptocurrencies around 2009, blockchain technology became the foundation of decentralized digital currencies. And fast-forward to today, the financial industry is also adopting blockchain technology due to its unmatched level of security. Due to its advanced encryption and immutability, blockchain can be used to store the records of financial transactions and confidential data securely. Every blockchain transaction is encrypted, and the data doesn’t sit at a central location; it’s scattered around the blocks. Consequently, blockchain technology has been tagged as an effective cybersecurity solution.

Using Your Money To Make More Money

People put huge amounts of time into working in the modern world. As the reward for your toil, you will be given a paycheck each month which you have to live on, with all of your food, clothing, and other essentials being drawn from the pot. Alongside the purchases you need to make, though, most people also like to make sure that they are saving as much as they can. To make your earnings go even further, this post will be exploring the work which can go into using the money you have to make even more of the stuff.

Online Investments

Over the last few years, online investments have become far more accessible than they used to be. With improvements to the technology which drives these systems, loads has changed which has made them far more useful to normal people. To take advantage of something like this, you need to be willing to put some time into learning about it. Once you find a good automated trading system, it will be worth spending some time to get to grips with the way that a market like this works.

Setting Up Shop

One of the key elements which have made websites like eBay so successful is the fact that they give normal users the ability to sell as if they have their own online store. By simply buying some cheap items from a country like China, you can start to sell at a rate which will earn you a surprising profit. Taking full advantage of this is easy, especially if you’re willing to spend a little bit of money in the process.

Peer Lending

When a business needs money in the modern world, the options which they have available are far more varied than those found in the past. As one of the key standouts in this, though, is a rather simple idea; groups of people contributing to a large loan. If you have some money lying around, peer lending can give you the chance to lend it to a company, offering the same return that a bank would get from action like this.

Better Banks

Finally, as the last area to consider, it’s time to think about action which can be taken by those who would prefer to keep their money safe above all else. Banks will always offer differing rates on the accounts which they have available. Some will be higher than others, and this means that you can often find a much better deal if you’re willing to switch. Most financial companies have simple systems in place which are designed to make a process like this easier.

With all of this in mind, you should be feeling ready to take on the challenge of making more money out of the money you already have. With the amount of people looking towards this sort of goal in the modern world, there are loads of resources available to help you out, and getting stuck into research shouldn’t be too hard.