Consumers expect a seamless digital experience across channels and touchpoints. New financial technologies, such as chatbots and Artificial intelligence, must meet these expectations. However, many financial institutions are wary of using these technologies as they face challenges with siloed data sets and regulatory compliance. These challenges, combined with apprehension that AI may not do the job properly, may delay the role of new financial technologies. The following article outlines some of the key challenges facing organizations and the challenges that they face.
Artificial intelligence
AI in finance has a wide range of applications. For example, it can be used to help banks predict fraud and cyberattacks. Artificial intelligence is also useful in risk management because it can analyze a vast amount of data. Through deep learning algorithms, AI can identify patterns and predict risks. In addition, AI in finance can analyze real-time activities and make accurate predictions. This makes it essential to the future of finance. This technology can be used to protect consumers from identity theft and financial crime.
Robotics
Financial services companies have been using robotic process automation (RPA) to automate routine tasks. These robots follow a predefined workflow and can autonomously run the programs required to complete a task. RPA is being used by many financial institutions and banks across the globe. The financial industry has been in a severe shortage of automation and RPA can solve this problem. There are many benefits to RPA for the financial industry.
Blockchain
As the use of digital money spreads throughout the world, financial firms are increasingly investing in blockchain solutions. The primary reason for this investment is the opportunity to reduce friction. Traditional financial services companies rely on a complex web of intermediaries to facilitate transactions. By leveraging blockchain, banks could eliminate these middlemen and provide more efficient financial services to customers. However, some concerns exist when using blockchain in financial services. Before investing in blockchain, learn about its risks and benefits.
Chatboxes
Banks have started implementing chatbots in their digital platforms to provide personalized service. Hang Seng Bank in Singapore has two chatbots, Emma and Ang. Both are capable of handling general inquiries and making payments. They also offer financial advice and recommend products based on the preferences of their customers. The chatbots can communicate in Mandarin and Cantonese. Hang Seng is not the only bank using chatbots.
Remote-access technologies
Real-time remote access has become a common business tool, reducing management costs, improving efficiency and supporting remote workers. Remote access software is also increasingly being built into products. This is a trend that is part of the growing Internet of Things phenomenon. It enables high value products to connect with customers and each other in real-time, reducing support costs and enhancing customer service. The advantages of remote access technology extend beyond the banking industry.
Robo-advisors
As the name suggests, robo-advisors manage investments for you, but do so through computer software rather than human advisors. In this way, the relationship between human and advisor is disrupted, as robo-advisors are generally not as personalized as human advisors. Robo-advisors are designed for investors who are comfortable working with a computer and don’t mind interacting with a robot.
