Technological advances continue to change the manner in which people communicate, conduct business, and purchase commodities. Similarly, technological transformations in the financial sector have changed how institutions operate and the way in which customers complete various transactions. People and institutions adopt technologies because they make work easier, enhance communication, minimize errors, and make processes more efficient. You should learn to select technologies that fit your company’s operations. The following are the unique financial sector technologies:
Digital Experience Platforms
Although digital experience platforms are already known in banks, modern technologies have helped financial institutions to improve the technologies they had adopted. An example is hybrid cloud solutions, which increases accessibility and privacy for customers. The hybrid platform captures real-time digitalization, analytics, and does other integrations in intelligent data. Another technology in this regard is the API platforms. It allows customers to integrate banking information in different apps.
Banks and other financial institutions across the United States and the European Union are now forced to provide open API. The open banking option enables customers to share data with budgeting apps that belong to a third-party and use tools for managing money. Providing an online modern digital platform for your customers helps to attract buyers, increase value, and allows customers to access and utilize data. Hybrid solutions, in particular, enhance security and cut operational costs.
Blockchain is relatively a new technology with minimal adoption. This is the technology upon which Bitcoin is based, and it presents unmatched opportunities. For financial institutions, blockchain solutions improve how they conduct services such as checking, processing of money, and trade finance. Many institutions, especially the smaller ones, may see this investment as demanding and even difficult to follow through. The good news is that the technology is becoming popular and will soon be recognized by customers. If properly implemented, the solution allows for fraud detection and reduction, loan processing, and enables processing of loans.
Digital transformation in the banking sector is led by artificial intelligence solutions. An example is chatbots, which is popularly used by financial institutions such as banks and the small credit unions. Other than chatbots, there are many artificial intelligence solutions for marketing, product delivery, security, and risk management. Machines that apply artificial intelligence utilize simple algorithms to finish data entry, risk evaluation, and processing of loan forms. For banks, the artificial intelligence technologies enable data sharing, and customer communication. Moreover, artificial intelligence can enable the making of smart agile decisions and reduce work hours overall time spent at the bank.
Infographic created by Donnelley Financial Solutions, an SEC filing software company
These technologies apply a set of pre-established rules to develop simple and dependable outcomes. These are useful for fixed and recurring procedures. Some automation technologies use learning patterns to improve over time as data volume increases. One of the automation technologies that works for banks and other financial institutions is an ID scanner app. It is an automatic ID scanning technology with ability to identify document type and extract all the necessary data. The app automatically verifies data, scans ID cards, and checks for consistency of the provided information.
Technologies tend to be very expensive when they are introduced but their costs start to decrease overtime as more businesses and companies continue to adopt them. This is why banks and businesses of various sizes access artificial intelligence today. There is no single technology that can accomplish all financial processing needs on its own but the good news is that every technology has something unique to offer. Several technologies can make many processes a lot easier in your financial department. You should check the available options and select the one that works best for your business.