Financial technology is entering a new phase of adoption this year. Consumers are becoming more comfortable and more aware of the flexibility offered by Fintech. As a result, major financial institutions are rethinking the way they do business and are offering flexible solutions, adopting in-depth customer analysis to improve the client experience, and rethinking the way they organize financial information.
The popularity of Fintech amongst the general public stems from mobile apps. Once consumers realized they could transfer funds, schedule payments, and manage their budgets without ever needing to go to a bank, traditional banks have had to adjust their strategies. Big banks are no longer an intermediary for funds. Instead, since they can potentially slow down financial processes for everyday people, these institutions are becoming more flexible and are using their digital transformation and IT budgets to decentralize assets. The result is a more desirable way to send cash. By the end of the year, we will likely see financial institutions leveraging artificial intelligence to match providers of capital with users of capital, which will expedite business growth and economic well-being.
Keeping with the trend of asset matching and sharing, banks and other financial organizations will rely on robust customer intelligence to foster the best matches and to optimize risk analysis. Customer intelligence in 2020 goes beyond surveys and predictive analytics. Today’s customer intelligence is powered by AI, which means it can dig into granular details that encompass consumer behavior in real-time and can include a range of variables that are seldom modeled at one time. Artificial intelligence can also learn and apply that knowledge in real-time, making it ideal for institutions struggling to keep up with fast-paced changes in the financial industry.
Rise of the Public Cloud
For centuries, banking has been about putting pen to paper. However, new technology automatically disrupts this system, giving us everything from pocket calculators to advanced algorithms. Instead of ad hoc third-party software for CRM, marketing, HR, and other tasks, banks and financial organizations are turning to core service infrastructures that can only exist in the public cloud. As a result, expect to see integrated services, decreased reliance on SaaS, and a push for greater public cloud security in the future.
These are only three of the fintech advances corporations can expect to see throughout the year and decade. Getting on board will prime an organization for other changes, like increased use of blockchain and sophisticated stress tests placed by regulatory agencies.