The value of global peer to peer lending in the finance sector has witnessed a dramatic increase from 9 billion US Dollars to 64 billion USD in 2015 and is all set to reach the 1000 billion USD milestone by 2025. In a survey conducted across senior banking executives in 2018, over 54.2% have opined that the increasing demand for digital channels is a most important factor in Fintech digital disruption, while another 50% acknowledge the innovation augured in by emerging technologies such as AI and blockchain as the most disruptive.
The phenomenal rise of the robot advisor is the most distinct innovation in Fintech. These robots use digital technology and automation to manage investment portfolios. Its applications are largely found in wealth management and retirement planning, to mention a few. They reflect market conditions, assess applicant net worth and work on hi-tech algorithms, rendering high-quality and data-driven financial advice.
Thanks to the digital inundation of the financial services, banks are able to provide their services on multiple platforms. Building UI and UX based web designs that are responsive and provide a seamless web to mobile transition are now the in-thing. Banks are able to help customers manage their accounts, savings, deposits, loans and other financial products, just at the top of their Smartphone screens. Omnichannel banking places prime focus on customer interactions.
AI and Machine Learning
The finance sector is evolving. Instant Money Transfers, Online Insurance and Mutual Fund investments and international money transfer through digital channels are all products of fetch innovation. AI and machine learning have enabled financial institutions to delve into customer data and synthesize them for increasing convenience and reducing time, effort and risk. The mundane nature and volume of backend processes in financial companies have now been replaced with machine intelligence.
The digital wave in reg tech companies and digital banks
Regulatory technology businesses are one of the path-breaking innovations in fintech, that uses information technology to digitize the regulatory and compliances processes. Through innovative technology, regulatory challenges and pressures are negotiated. Suntech (supervisory technology) and Insurtech (insurance technology) are also becoming the next generation game changers in Fintech. Soon digital banks will fast replace traditional banking activities.
Some mind-blowing Fintech innovations
The digital wallet has become a safe and convenient way to construct electronic financial transactions without the hassle of carrying cash or cards. Android Pay and Apple Pay are trending digital wallets that help you make online payments in a safe and secure manner. Other innovations that are driving the digitization of the finance sector are cryptocurrency wallets like Bitcoin Core, Jaxx and Electrum.
Mobile payments, cryptocurrencies and asset management – the digital future of fintech innovations is bright and lucrative. More and more organizations believe in paperless workflow and digitization of the finance function has become mandatory to fuel global expansion plans.
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Sankar is the Senior Developer at Zuci. He is responsible for the Design, develop and implement solutions to users’ needs and requirements.Get in touch with him at Sankar.