The use of technology in the financial market
It was not long ago that the financial market was seen as an extremely regulated and centralized environment.
A sector that deliberately suppressed opportunities by ignoring the potential of technology. With technology, it was possible to expand the range of operations, expanding the borders within the financial market.
The digital transformation and solutions aimed at improving the lives of users should expand and reach an increasing number of people in the coming years.
In this blog post, we list 6 technology trends that are impacting the financial market and will become mandatory in the near future:
1. Artificial Intelligence is driving the financial market
AI appears in all technology trends for the coming years and is used by companies from the most diverse areas as a means for their innovations. Artificial intelligence is used to automate simple and straightforward human decisions, such as processing economic data and improving productivity in the financial sector.
Advanced data analysis, text and image processing, machine learning, computer vision – all these capabilities provided by Artificial Intelligence (AI) are increasing. With so much technology, Artificial Intelligence streamlines and optimizes processes and tasks that could take days to complete – and which can now be delivered in seconds.
Among the main objectives of using Artificial Intelligence in the financial market is the possible improvement of functionalities and the increase of offers according to the real needs of the clients.
2. Evolution of the customer journey – multichannel
With a more agile business model practiced by Fintechs, consumer expectations regarding an integrated and multichannel service have increased. The ease of dealing with your banking matters anytime and anywhere revolutionized the old service systems, which depended on branches and personal contact with managers and attendants.
According to the Accenture study “Banking Consumer Study: Making digital more human”, as a result of the pandemic, 50% of consumers interact with their banks online via mobile apps or websites at least once a week, compared to 32 % two years ago.
Maintaining personalization, enabling quick and convenient contact via mobile devices and offering self-service solutions are essential practices to serve this new user, contributing to a positive experience.
3. Open Banking and Open Finance: New services and more competition based on customer data
This measure guarantees the sharing of data and banking history upon authorization by the customer, who is free to choose from which institution or company to consume a particular product or service, without having to start a relationship from scratch.
On the part of the companies, there is greater knowledge of the profile of their customers and, therefore, they are able to offer more punctual solutions to their needs. Thus, open banking will allow major innovations in financial services to originate outside the banking industry, with the entry and strengthening of big techs and fintechs in the market.
4. The Rise of Dark Analytics and Automation
Far beyond technology comes data. It is the engine of the digital transformation in the financial market. Dark Analytics is the term that refers to the in-depth and thorough analysis of consumer data.
Through its collection, storage, categorization, analysis and processing, it is possible to understand more assertively how to act and what services to offer.
This is how the companies that stand out the most in the new financial market offer such innovative and punctual solutions, perfect to meet the main needs of companies today.
5. UX User Experience
UX has been increasingly taken into account when companies develop their solutions and products. It is a term commonly applied to design and can be defined as a mindset that always seeks to develop solutions taking into account the needs of those who use them.
For companies, thinking about UX means thinking about increasingly personalized products and offering a complete experience to their customers. Robo-Advisor, Chatbots and Opening digital accounts are examples of solutions that seek to offer the best user experience.
6. Money will become more and more digital
Another trend is the broader use of digital financial products, such as digital wallets and pay-by-pass, which has been strongly accelerated by the need for social isolation. Due to the coronavirus pandemic, many people made online purchases or needed to move bank accounts for the first time.
We’ve seen a growing use of digital and contactless payment methods, and this has encouraged the use of digital payments over cash.
The study “The Cashless World – Evolving Payment Environments in Key Asia Pacific and Western Markets” conducted by GlobalData shows the increasingly clear path to a cashless society that responds to new modern consumer behaviors and uses technology to its advantage. In the ranking of countries that run fast in this trend, are the developed countries Sweden and the UK, which visibly already use more digital means of payment than cash.
The importance and potential that technology and innovation are having in the year 2021 are indisputable. Likewise, you can expect an increase in this field in the next year, and you can already prepare your company to keep up with the advances in the technological and innovation field.
Share on Facebook
Share on LinkedIn
Twitter
Share by email
