FinTech has taken over the financial industry like never before. Leading innovations from start-ups are now big business, where something that was a small back-end technology is now the focal point of driving products and services for consumers. The benefits of FinTech start-ups are not just fast innovations, but the start-ups are identifying ways to streamline efficiency. Not only does it promote efficiency, but they also turn out cheaper and quicker. If you’re looking for new ways to ensure the way you manage your finances is efficient enough for you, FinTech will cover this. Banking and Finance have particularly benefitted from FinTech.
According to Deltec Bank, Bahamas, “Some of the sweeping changes in the areas of Banking and Finance is edging out the need for human administration to make way for automated technologies and techniques through artificial intelligence, developing opportunity, convenience, and efficiency.” Let have a look at some of them-
- Fraud Prevention and Detection – One of the key concerns within the finance and banking sectors over the years is the vulnerability of theft and fraud. Big banks are now well equipped to automatically block transactions that are considered fraud by asking you to confirm a transaction through your credit card. Where it is confirmed that the transaction was not conducted by yourself, it will be classed as fraud. This is a classic case of AI taking over. An alert will have been triggered by software that identifies banking patterns. Where an abnormality is found in the pattern, a fraud case will be highlighted. Whilst it may not be a fraudulent case in the first place, the use of AI in this instance helps to protect customers and provide a more robust fraudulent detection process.
- Virtual Assistants – It is no secret that the banking and finance industries have invested in virtual assistants for robotic automation. Chatbots are used through natural language processing to provide an accurate response through human interaction, where there is more confidence for humans to use VA’s. Through customer inquiries, daily administration tasks in an office, the answer is expected to be there right in-front without the need for human support. VM’s have proven to reduce costs whilst promoting greater productivity and efficiency. Plus, customer satisfaction levels will hit the roof, only increasing business reputation.
- Personalized Payment Services – Nowadays, processing payments locally and internationally has never been easier. Through mobile payment services, the variety of applications that have been produced to send money to wherever you like is available right in the palm of your hand. FinTech is responsible for developing a variety of payment apps where all banking services that you perform in the branch would no longer be required. Examples such as PayPal, E-Wallet, Apple Pay are significant technologies that allow for smooth and advanced payments.
- Blockchain and Cryptocurrency – FinTech is taking the digital currency innovation by storm. Blockchain services comprise of transferring values and assets through digital payments and buying and selling stock trading. Blockchain also produces ways to reduce financial fraud. Blockchain is a distributed ledger that stores records of transactional data chronologically. FinTech has identified blockchain as a cheaper option whilst producing highly secure financial transactions. The distributed ledger also allows for data to be uploaded into blocks without being able to alter them, which is essential in building trust to consumers and partners.
Innovations such as this only emphasize how FinTech is shaping up the banking and finance industries. Other industries such as insurance and retail are also adapting to the FinTech revolution. The impact it has on the lives of people is there for all to see. This illustrates the heavy impact FinTech is having, and the changes are only going to get greater.
To sum-up, start-ups are now being paid more attention due to the opportunities they provide for banking and finance companies. It is now ever-present that human intervention is being edged out by smart and intelligent technologies that ensure companies can improve the efficiency of its operations. Some of the sweeping changes are now essential foundations to the banking and finance industry.
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.