Technology has modulated the way the Banking and Financial service industry operate. Over the years, the banking industry began to embrace technologies such as Artificial Intelligence, Machine learning, Mobile Banking, RPA and Blockchain with a view to leverage existing data and transforming customer experience. The role of innovation in bringing automation to the industry has been crucial. The use of technology has been a great contribution to the BFSI Industry as it builds major customer experience for faster and better results. This brings convenience to the banking and financial services.
The recent trends in banking have enabled a new generation of financial startups to emerge. There’s no doubt that technology is making the financial world more effective and efficient, and adoption of technology is essential to realize the true potential of this sector.
Here Are a Few Ways That Technology Contributes to Innovation in BFSI Industry:
1. AI and Machine Learning:
The technology in AI and Machine Learning is evolving at a fast pace, through this we can transform into smarter beings. Machine learning is one of the prime areas of AI. With machine learning, we can analyse thousands of programs to build an algorithm based on the goal in mind. Overtime, AI and Machine Learning have built an immense potential for detection of financial fraud with networks as it helps identify fraudulent data patterns in new transactions that can help humans and now machines solve problems. A computer system improves the capabilities that have become valuable in helping companies transform their processes and products. Although technology takes over adaptability in nature, AI and machine learning helps the computer system achieve consistency through deep learning.
2. Mobile Payments:
Mobile payments have emerged as a solution for all kinds of payments as they are set to makeup 39 percent of all point-of-sale transactions by 2025. Mobile payments show a direct relationship between ease of use and convenience as digital currencies have now become prominent through mobile money. Customers have moved towards their mobile phones to conduct banking transactions as it opens the door to greater economic inclusion in a region. This form of banking has played a major role in rectifying by internet-enabled devices like smartphones, tablets and watches.
Cloud computing provides essential data that is mirrored on the providers network that can also be stored through various organizations. In simpler words, rather than managing files and services on a local storage, you’ll be doing the same over the internet at a low cost. Computing solutions are offered by the service providers for developing and managing applications as there are several service models to handle the applications and the data for the Business operating system.
4.Blockchain: A blockchain is a distributed database or ledger that is shared among the modes of a computer network. As a database, a blockchain stores information electronically in digital format as blockchains are best known for their crucial role in cryptocurrency systems. A system in which a record of transactions are maintained that is highly secured and assists in tracking assets in a business network. Thus, BFSI Industries have developed the latest technological trends in banking through decentralising various channels in order to make payments.
Application of data analytics has now become an integral part in the BFSI Industry.Tech Companies are looking forward to conduct a lot of research to work around various use cases of Artificial Intelligence in Finance. Typically, AI is used everywhere on a channel side wherein customers interact with the bank through various tools and technologies to collect, process, and analyse raw data within the banking industry. A huge data engineering transformation is happening all across the organisations in the system which look into big companies where the e-commerce process their data. Data analytics is widespread as people are talking about transferring data in minutes and seconds creating real time decision-making. This requires data to give better experience to their customers.
These are just some of the technologies that serve as catalyst to Innovation in the BFSI Industry. With technological advancement increasing, more innovation in the industry can be expected.