The financial world has changed in the landscape with many entrepreneurs seeking to take advantage of new start-ups, which began a new industry called FinTech. After the financial crash in 2008, FinTech has completely transformed how industries and people alike do finance. Even the traditional financial institutes have picked up on FinTech start-ups and are ensuring that they are the brick and mortar of the financial industry going forward.
Companies are now required to adapt to a growing and regular financial and digital change to a point where if they do not, businesses will go bust. With the challenge of struggling to anticipate the future of the digital world in finance, it can be difficult for businesses to be proactive in growing changes, rather than need to adapt when necessary.
Let’s look at some of the technological advancements that have disrupted the digital world in finance:
• The Emergence of Blockchain – Back in 2008, a new digital currency called cryptocurrency emerged, known as Bitcoin. A transactional, decentralized ledger was produced called Blockchain that was developed to save digital transactions. All digital transactions can be publicly or privately distributed across a network, where it can become impossible to be tampered with. The emergence of blockchain introduced better security, reduction of fraudulent activity and improvement in settlement processes.
• Internet of Things (IoT) – IoT comprises of multiple numbers of smart devices that are connected over a network that allows for the exchanging of information through the cloud or intelligent ecosystems. Due to the increasing multitude of technologies and devices available, it opened brand innovation for financial companies. For example, smart wallets and POS payments. FinTech is benefitting from IoT.
• Artificial Intelligence – Artificial Intelligence is not exactly a new concept, it has been around for a long time, although the elements of AI comprise of machine learning, deep learning, speech recognition and cognitive computing, which all work together to draw complex patterns, trends and automated insight through Big Data to help streamline operations and improve efficiency of processes. Financial companies have been quick to step into AI technologies, which has streamlined finance areas such as fraud, predictions, and analysis, investment plans, chatbots and analyze market growth through real-time reporting.
• Smart Devices – The first smartphone was introduced in 2008 and was the first of its kind with touchscreen capabilities, 3G network, and building applications to access. Smartphone users rapidly increased which encompasses the push of the digital world. The future is now Smart, where all activities that can be done on a normal PC are not available through a small mobile device. The convenience of browsing the internet and performing essential online activities are available at the palm of your hand. It has transformed the digital world and continues to today.
According to Deltec Bank, Bahamas – “The rise of the digital world through disruption technologies has transformed the financial and technological industries with FinTech.” The advancements of technology are being capitalized on which now offers the ultimate convenience and efficiency to the end customer. The convergence is essential in ensuring that customers experience a positive user experience. The innovations available are only going to up-scale the digital world and technology and FinTech is a key contributor to this through start-ups innovations.
To sum up, entrepreneurs have entered the financial market with start-ups that have grasped the attention of the digital world. Finance companies are now adapting to evolving technologies that are vital for a competitive standing against its competitors.
Disclaimer: The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.