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Financial services is a board term used to describe the various offerings within the finance industry – encompassing everything from insurance, money management, payments, digital banking technology and with financial activity becoming increasingly digitized, especially as consumers are seeking more advance ways to manage their funds, financial institutions are sharpening their technology and expanding remote services.

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These new technologies have enabled banks, insurers and other financial services industries to overhaul their operations and identify different ways of serving their clients. Over times, innovative products have transformed the finance industry – from payment types including credit and debit cards, to transaction processing such as telephone and online banking to saving options such as investment funds and structured products, e-commerce for financial assets to risk management techniques and beyond.

The finance industry must embrace the opportunities offered by innovation and further integrate disruptive technologies, such as:

Conversational Chat bots

Technological advances in conversational AI, for example, are allowing finance industries to deliver high-quality digital experiences to customers at scale, empowering users to control their finances without human support. AI-powered chat bots learn and grow from the existing database and ongoing interactions to deliver customized answers to customer queries, provide relevant suggestions and perform beyond expectations.

Robotic Process Automation

One of the ways innovative technologies have helped finance industry to become more efficient and effective is robotic process automation (RPA). RPA can streamline key banking functions, including customer onboarding, verification, risk assessment, security checks, data analysis and reporting, compliance processes and other administrative activities. Automating these processes not only benefits consumers, it also frees up employees to perform more complex, value-adding activities like customer service.

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Blockchain

Blockchain is at the forefront of technology innovations as it is one of the most prominent technologies that instill security and accountability in the finance industry. The technology scrutinizes transactions in a cost-effective, decentralized and verified manner. It reduces dependency, supports proper bookkeeping and is one of the financial services technologies that will underpin the two most important pillars of the industry, i.e., transparency and trust.

Data Analytics

Data plays an elementary role in the various aspects of the finance industry and when mapped with technologies such as data analytics, it is sure to deliver business value. Data analytics enable businesses to successfully process enterprise-wide data and gain actionable business insights that help in decision-making, product development, risk management, fraud detection and more. The technology also helps financial sectors revisit past performances, optimize ongoing tasks, processes and functions, as well as get a glimpse into the future. It will be possible to build an efficient, smarter enterprise and a new world of opportunities through the adoption of this technology in the finance industry.

Cloud Computing

In the finance industry, the service providers have reached a level where mobile banking pervades the demand allowing insurance transactions to be done online and tech-savvy customers are fond of digital wallets. The cloud computing technology helps financial industry achieve all these seamlessly.

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The digital-backed sharing economy never sleeps and customers laced with smart devices want to communicate and transact round the clock. Cloud computing supports mobility in a true sense and helps keep up with the digital-born customers’ pace, it also stores and enables instant access to data and provides on-demand availability of computer resources without direct management by a user.

Cyber–Security

The financial industry deals with personal and financial data of customers, which is sensitive and unfortunately, it is the data that is the most vulnerable asset in a connected ecosystem. The service providers in the finance industry are investing in access delegation framework, which protect them from third-party attacks and helps them build robust APIs (Application Programming Interfaces). Such technologies and frameworks not only keep data secure but also help businesses comply with finance regulatory standards.

In conclusion, these technological innovations in the financial industry are currently affecting almost all business aspects. Processes have become more transparent, transactions are layered with security and precision and customers are offered a great deal of personalization across products and services.

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This article was first published on 26th April 2022

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Grace Christos Is a content creator with a proven track record of success in content marketing, online reputation management, sales strategy, and so much more.

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