In the latest fintech news, it has been reported that financial technology has been experiencing a phase of the revolution. The important fact to be noticed in this is that these revolutionary advancements are not just impacting the financial industry but have the potential to change the way we conduct transactions in all aspects of the business.
Finance has been one of the last areas of a business to see disruption, but it is catching up quickly. As mentioned fintech is currently in the initial phase of transformation and from the look of it, it looks quite promising and extremely exciting. Let’s have a closer look at what these advancements bring in.
About Fintech Revolution
Fintech is all about applying evolving technological advances to improve financial services. The ‘tech’ in Fintech is the emergence of brand new technologies, such as AI, blockchain, analytics and big data. To support this, there have been a recent upgrade in Fintech adoption. With investment coming by, new technologies have been deployed and the momentum, as a result, has been huge. Deployments are highly accelerated as adjustments to the technology e.g. blockchain or to risk management e.g. AI, are made. Just a few years ago, the cloud was seen as an impossible solution for financial services but is now transforming the industry. As with cloud, the cost benefits of adopting Fintech will be realised eventually.
Fintech Being Automated
There has been no industry in this era that hasn’t been impacted by automation in some way or the other. Hence the banking industry is not an exception. It has also been said that a second wave of automation and AI will emerge in the next few years where machines will do up to 10 to 25 per cent of bank work. As simple processes are being automated, bank employees and others in the finance industry will have more time to focus on higher-value tasks that take use more human brain power. This automation will also have an advantage for the customers well. Which is, a quicker bank experience and plenty of self-serve options to choose from. Thus making the banking experience simpler and quicker.
Increased Fintech Regulation
With all the changes come new regulations too. Finance is one of the heaviest regulated industries and as financial institutions begin to use new technology, data is gathered in drives and self-service becomes the norm. It is only natural for regulations to increase. With the Fintech revolution being the newest disruptor of choice, the banking industry and its consumers will need to hold on to all the regulations laid down by the industry. It will take some time for this technology to gain enough speed to become widely accepted. However, it is definitely on the horizon.
Every new advancement in the technological field is an exciting experience. With fintech being in a transformation phase, banking experiences will be more digital, more personal and more seamless than anything we’ve experienced in the past. Looking back, 2019 may be considered as a beginning of another revolution.
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