The role of tech in financial services

Since the internet was born, technology has seeped into parts of our lives we didn’t expect. Technological advancements are helping the world evolve at warp speed. Financial Technology, or FinTech as we call it today, is creating positive ripples in the financial services industry. FinTech is a catch-all term encapsulating software, mobile applications, and other technologies to improve and automate traditional forms of finance for businesses and consumers alike. It also includes everything ranging from straightforward mobile payment apps to complex blockchain networks housing encrypted transactions.

With so much happening, what does that mean for a financial institution? The two key drivers of change have always been simplicity and convenience. The adoption of technology in the financial sector proves to offer just that. The COVID-19 pandemic proved that things change overnight. It becomes mandatory for companies to be on the cutting edge of technology, lest they run the risk of running out of business. Using various tools to realign the process digitally is digital enablement. And major financial services companies must adopt it to keep themselves abreast of the latest developments in financial convenience and security.

Biometrics, intelligent OCR, Video KYC, e-contracts, chat & email bots, NLP-dependent AI interview systems, are some digital technologies that financial service providers have adopted to keep up with the changing times. Now, customers can continue availing everything from registration and verification processes to redressal of complaints. A crucial technological milestone that drives greater efficiency, compliance and productivity with financial institutions is Robotic Process Automation (RPA), steadily proving to be the future of financial technology and offering a great ROI.

Blog 3 - Redirect Page - Banner - Greyscale - 526x133 RPA is evolving from simple individual task automation to a full-process automation that could improve the accuracy of financial analysis and forecasts. Automation enables the standardization of financial processes and helps avoid duplication or risk of errors. Digitization helps make financial transactions both quick and transparent, saving time and cost of printing. Deploying advanced deep-learning algorithms to absorb and analyze customer calls and discern the customer experience helps financial institutions in tracking customer traffic and engagement.

Another important aspect is the cloud. Today, it is part of our lives. It is no more just an emerging trend of the future. And it is a critical tool for financial services companies to stay competitive in the challenging business environment. Cloud technology allows financial institutions to modernize their operations by adopting platform thinking. It ensures that customers are no longer passive but are actively engaged in value creation. Financial firms can gain improved data protection, fault tolerance, and disaster recovery with the help of cloud computing.

That brings us to another component of financial technology, Cyber Security. Dealing with sensitive data makes financial institutions more susceptible to cyber-attacks. To overcome this risk, it is necessary to adopt an Enterprise Risk Management Policies (ERM) framework. An ERM framework helps in identifying key risks, quantifying them and reporting them. It also helps in managing risks better by implementing the proper controls to eliminate or reduce the threat.

Staying relevant in the challenging business environment requires the workforce to be up-to-date with the latest technological developments. By harnessing the power of digitization, organizations can future-proof their strategy in a dynamic and highly competitive industry. Adopting new cutting-edge technology to enhance the customer experience is the only way ahead.