Technologies and trends disrupting the banking and finance industry

Technology is completely altering the finance industry. Consumers have now come to expect regular technological enhancements to make the world of finance easier to navigate. Below, we explore the technologies that have been the biggest disruptors of the finance and banking industry.

Digital banking

Digital banking is one of the main trends that has disrupted the industry. Consumers are now expecting cutting edge software to manage their banking and to make transactions easier. Prepaid cards are now a popular way of managing your money and limiting spending. Meanwhile, digital wallets have made contactless payments more practical and more secure. And it’s resulted in traditional banks competing with fintech companies for customers.

Blockchain

Blockchain is the technology that underpins cryptocurrencies such as Bitcoin and Ethereum. The main advantage is that it’s considered a fast, transparent and secure payment method. Many financial institutions are now identifying the safety benefits that it can offer and are looking to capitalise on the opportunity. It’s particularly attractive – and disruptive – because it eliminates the third party in credit systems.

AI/machine learning

AI and machine learning are becoming crucial for the banking and finances industry too. One of the main benefits of AI, is how it can help with customer service. With AI taking over customer service, consumers are now able to conduct banking operations all the time, rather than waiting for opening hours. At the same time, AI can help detect fraud and alert customers quickly. AI can be taught to recognise the patterns that occur with fraud and can instantly alert customers that they might be at risk. This has helped financial institutions boost their quality of care and become more trusted amongst consumers.

RPA/voice interfaces

RPA refers to robotic process automation. This is the practice of training robots and software to complete laborious and intensive tasks every day that humans previously had to undertake. This saves time and helps financial institutions run more efficiently. If you’ve ever seen a customer service chat box, this is usually the work of RPA to try and help you navigate through your issue without having to speak to another person. Financial institutions also have to deal with plenty of compliance regulation. But with the help of RPA they can get through complex processes – such as a credit application – in just a few hours, saving both you and them time and money.

Technology is consistently driving financial institutions and banks into much efficient and new pathways. From AI to blockchain, it’s an incredibly fluid field. As a consumer you take advantage of this by enjoying products such as prepaid cards or by deciding to join a technologically advanced bank.