In this era of artificial intelligence, things are frequently moving towards technology generating ease for millennials in every aspect of life. The rise of the techno-friendly revolution has already made people look for fast processes and easily accessible solutions to their daily lives. Fast-moving lifestyle and rapidly growing economy have also created several difficulties for individuals, business owners, and industries to go about their daily operations and especially track their day-to-day finances. Financial technology (Fintech), with solutions like DataZoo payment solutions, has emerged as the right solution to these problems as it has plugged the gap by offering financial services directly to the consumers and the big business tycoons by managing their finances digitally.
It’s the fastest-developing revolution that has taken over the digital world by providing a more secure and faster-decentralized blockchain technology. It has also helped that strata of the global society which was without bank accounts. Now they can enjoy the banking services through digital means which has eased up life in general and business in particular. According to the study of PwC, more than 81% of CEOs in the banking sector are considering the impact of digitalization on their field.
However, it is not always a win-win situation. Since technology is growing at a rapid pace in business and industry, it has become difficult for businesses to keep pace with it. In this scenario, only the companies that have upgraded their operations with the latest technological advancements have taken lead in the industry.
Reviewing the recent advances made in fintech, nobody can predict what new will come next and how beneficial it would be in the coming year 2020.
Easy funding and capital access to firms:
Fintech will move to the new dimensions as the business sector is eventually growing throughout the world. It would be easy for individuals to get patron funding through this than by approaching banks for the loan that would solve the biggest problem of many businesses. It would help the SME sector to start up new business ventures by getting the funds through investors that would help many of them to penetrate and grow in the market. Moreover, it would shift the investors online by providing a secure way of finding business and making the investment. Therefore, it would be easy for consumers to get the funding online through any means without facing any long procedures of the bank.
Making ease in the transaction:
The usage of mobile devices and the internet has become the most important part of the millennial. As they approach things through mobile phones. Therefore, it would create a new platform for transactions that could be done between B2B or B2C. It would help the digital market penetrate via e-commerce as the companies offer easier money transaction solutions to their consumers. It would help to bring people closer as they could transact money to their loved ones through this app by minimizing the distances and bottlenecks.
Many of the businesses ruling over the digital market would collaborate with them as it would solve the complications of the transaction between them and the clients. Therefore, it would help to manage their sales ledger as well that how much revenue they have generated and how many transactions have been done through their account.
Growth in the Blockchain:
In today’s technology industry, some experts are predicting the end of the blockchain era, same as some are seeing merely the innovation cryptocurrencies and expect it to increase in 2020. Others understand the impact of decentralized technologies. However, the blockchain revolutions are real and in the world of e-commerce and fin-tech is reacting to it in many ways. You should also see the current growth and future predictions about the rise in the number of institutions integrating blockchain which is well beyond cryptocurrency.
Blockchain offers unique stability and secure connection, which has already attracted a lot of financial institutions. It protects the data from getting hacked, copy or corrupted during the transfer, so lenders, bank, and investment firms can directly send the data to their clients. It’s an innovative and flexible solution that solves many problems of modern fin-tech companies, especially e-commerce business which relies on online cash transfer. The following are the benefits of blockchain.
- Market research and customer analytics:Rabobank uses blockchain to store and analyze KYC which stands for “Know your customer”. Blockchain also corresponds with government requirements, shortens the time and need for data processing.
- Innovative payment system:Blockchain makes the global transaction much cheaper as you can also consider it as a substitute for traditional money transfer.
- Fraud detection and cyber-attack prevention:There are no longer possibilities of targeting a single database because all the information about real-time payments and profile details are stored on multiple blockchain servers. It is impossible now to corrupt the data. A company like BNY Mellon Treasury Services Business uses this software to protect its customers’ financial and personal data.
Increased Use of Fintech by Banks
Now every bank is on a digitized technological platform which automatically increases the two-phase security in the banking sector. First the risk for their institution and second the effective use of Fintech to deal with the institutional risk. Banks are now trying to get the most out of the cutting edge technology. According to Forbes, one of the largest banks in the U.S. “Bank of America (BOA)” has been spending around 3 billion dollars, on technology every year for the past several years.
Like every other bank, the Bank of America had to face new challenges about Fintech, which was damaging the core financial market areas like payments method, lending, and consumer banking. These areas can be considered as the bread and butter for traditional banks. Furthermore, that’s not the only reason why Bank of America agreed to become a partner and emerge with Fintech solutions. It also embraced financial technology to make it possible for its consumers to deal with cryptocurrencies. So, it is providing the solution to everyone from the paycheck consumer to the more complex wealth management.
Robotic Process Automation
Automation is not a new thing in business. The robotic process automation (RPA) has been in the use for those tasks that people usually perform manually. For example, it helps in producing a report or entering data about multiple processes in real-time. The robotic process automation (RPA) is specially designed to integrate and interact with exit workflows and user interfaces. It means that through the help of RPA, financial technology can easily integrate tasks with automated processes which are still done by human and in the end, it will reduce processing time and increase the efficiency.
The groundbreaking process involves robotics with the help of (AI) artificial intelligence algorithms. These algorithms will increase automation of the traditional processes that are being done by humans, like filing documents, complementing forms and other tactical operational tasks.
The Final Word
Financial Technology is not only the present but the future of financial solutions in the world that is rapidly shifting towards automation. The role of artificial intelligence in expediting the process and offering the right solutions will help the global population to go about their financial needs efficiently. The upcoming year is about to start and the way financial technology has already made its presence felt, it can be predicted that the Year 2020 will offer a lot more financial solutions to the financial companies as well as their clients and consumers.