It is no secret that technology has been dominating each individual and business over the past few years. Technological advancements and innovations have changed the way we live today – from how we communicate, make purchases, and much more.
As a result, almost every industry employs the latest technological advancements to enjoy as many benefits as possible, especially with everything going digital today. The finance sector is no different.
Moreover, the emergence of technological advancements now and then has caused serious disruption in the finance sector. As a result, how financial institutes operate and what expectations the clients have from financial organizations have changed drastically.
On the other hand, the rapid development in technology has made it easy for financial organizations to offer excellent customer service, improved profitability, and overall productivity.
Below is the outline of some of the top tech-driven emerging trends in the financial sector you can expect in 2021:
1. Blockchain Technology
Blockchain is one of the leading technology trends that is shaking the financial sector significantly.
The best part about blockchain technology is that it doesn’t require any third party to execute transactions. That way, no unauthorized user can gain access and hence the enhanced security. Therefore, the technology is here to stay for a long time due to its safe and secure transaction processing.
Furthermore, emerging technology is drastically changing the shape of the financial world due to its affordable processing fee and worldwide outreach.
Since blockchain is an open and digital ledger, it records digital transactions – cryptocurrencies, in code. Thus, making it easy for every individual having cryptocurrency to have their copy of the ledger that records all transactions.
Unfortunately, many cryptocurrency holders are either entirely unaware of tax implications on this virtual currency or intentionally ignore this fact to avoid tax filing. Nevertheless, users who want to learn more about virtual currency taxation can get help from IRS-issued taxation of bitcoin guidance and avoid penalties.
2. Artificial Intelligence and Chatbots
Every financial institution, no matter the size, prioritize their customers to give the best services. Therefore, artificial intelligence or AI plays a significant role in identifying customers’ needs, behaviour, and patterns.
Previously, finance institutes used surveys to gain customer insight, and the results were pretty hazy. However, with advancements in technology in the finance sector, organizations can take advantage of AI to fine-tune their finance operations.
For instance, companies can employ AI technology to gather large data sets and analyze the patterns, which helps them make well-informed decisions. Moreover, many companies are leveraging AI-powered chatbots to improve customer experience. Customers can benefit from these chatbots 24/7.
3. Robotic Process Automation
One of the hottest technology trends taking the financial sector by storm is Robotic Process Automation (RPA). In this technology, finance companies use robots to automate their finance operations.
Different operations where RPA proves beneficial include data analysis, credit card processing, security check, payment management, etc. Due to this, many finance organizations can reduce their labour work, time, and money.
Also, the use of robotic technology mitigates the risk of human error and increases process efficiency. As a result, no more employees need to waste their time and energy performing complicated and value-added tasks. Instead, innovative technology can help employees focus on different and more essential tasks and thus boost productivity.
4. Online Bank
Since almost every aspect of our lives has gone digital, the finance sector is no different. Another exciting tech trend that has shaped the finance industry is online banking.
Customers had to visit the physical branch and stand for long hours in the queue to receive services in the past. However, with the development of technology, more and more finance institutes are now offering online banking facilities.
It also gives benefits to online banks as they no more have to invest in a physical location. With the help of online banking trends, customers can easily access their bank status and manage their funds accordingly.
Moreover, it helps users reset their pins in the comfort of their homes. Furthermore, with the rise of COVID-19 cases worldwide, there is an accelerating trend for customers to switch to digital banking services to avoid interaction.
5. Biometric System
With everything going digital in today’s modern world, the traditional payment wallet payment system will likely disappear. It is because the customers have become less dependent on cash payment methods. Thus, many financial organizations are offering online banking services to their customers.
However, with all these conveniences, the risk of online fraud is also looming. That is why more and more organizations are taking security measures. Therefore, financial companies are rolling out the latest biometric system to keep sensitive data and information safe and secure.
Moreover, the physical biometric solution is more likely to end soon. Instead, the coming years would introduce a touch-less biometric solution.
While it is true that digital transformation has gained much recognition over the past few decades, the emergence of the COVID-19 pandemic has shifted customers’ viewpoints.
In the present age, customers are looking for easy and convenient ways to get their financial services. For this reason, every financial institution is taking advantage of the latest technologies to satisfy their customers’ needs.
Furthermore, it is to note that the digital transformation era is not going to end anytime soon. Thus, it gives financial organizations more reasons to watch various new technologies for a better future.
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I am Adeyemi Adetilewa, a media consultant, entrepreneur, husband, and father. Founder and Editor-In-Chief of Ideas Plus Business Magazine, online business resources for entrepreneurs. I help brands share unique and impactful stories through the use of public relations, advertising, and online marketing. My work has been featured on the Huffington Post, Thrive Global, Addicted2Success, Hackernoon, The Good Men Project, and other publications.