The financial industry is one of the most important and influential industries globally. It touches nearly every aspect of our lives, and its impact can be seen in everything from the clothes we wear to the food we eat. In recent years, however, this industry has been struggling. Bankruptcies, scandals, and a general feeling of mistrust have all taken their toll on the financial sector.
But there is hope. Thanks to innovations in technology, the financial industry is starting to transform. This article will explore some of these innovative technologies and discuss their potential impact on the financial industry.
Push to Card
The first technology we will explore is already gaining traction and making waves. It’s called the push to card, and it allows customers to send money from their bank account directly to someone else’s card.
The traditional process would typically require customers to use an app or website, which then takes at least 24 hours for the money to reach the card. On the other hand, the push to card allows customers to send money directly from their bank account to another person’s card in just a few seconds.
The process works by linking two bank accounts and using signals sent over the phone’s radio waves to transfer money between them.
Digital Experience
While many significant innovations will help improve banking services, we also need to think about serving customers better and giving them what they want in terms of their digital experience.
Many young customers don’t like going into banks and dealing with tellers. They’d instead do everything online or through their mobile devices.
One innovation that will help with this is called ‘concierge banking.’ With concierge banking, customers can now access their accounts at any time through a text or video chat with a trained agent. Customers can schedule appointments, deposit checks remotely, perform international wire transfers, and more.
Blockchain
We’ve talked about how advancements in mobile and digital banking services will benefit the financial industry. Now, we’re going to shift gears and focus on an innovation that will transform the foundations of the financial sector: blockchain technology.
This exciting innovation has been making headlines worldwide for its ability to revolutionize nearly every aspect of finance. The blockchain is a decentralized ledger that records every transaction made on the network. This ledger is not stored in any place, meaning it can never be manipulated or corrupted by any single party. To further ensure its accuracy, transactions are recorded across numerous computers worldwide instead of just one.
Artificial Intelligence
Artificial intelligence is a broad concept covering all sorts of computer programs designed to mimic human behavior. The technology has been around for several years now, but only recently have companies started to take advantage of its capabilities in finance.
Now, many companies are using it to automate financial processes or make their budgets more efficient. One example of how AI can help financial services is developing automated investment programs, or “Robo-advisors.”
These Robo-advisors use mathematical models and pre-programmed algorithms to determine which stocks or funds a customer should invest. Once this process is complete, the robot-advisor then places the customer’s investments and makes automatic updates whenever investment information changes.
Big Data
Big data is a term that refers to extensive sets of data that you can analyze for trends and patterns. You can then use this information to conduct investigations, solve crimes, and more.
In the financial sector, big data is fundamental in helping companies better understand their customer’s behaviors and decisions to offer them the most relevant products possible.
One example of how big data is used in the financial industry is marketing. Companies who understand what their customers like, when they shop, and how much money they make can send customized emails to them that contain promotions for the products or services they’d be most interested in purchasing.
Wealth Planning
While Robo-advisors and other automated investment programs are great for young investors, what happens when we get into our golden years and don’t have the time or energy to manage our finances?
One innovation that can help with this is called “wealth planning.” Wealth planning technology uses big data and machine learning algorithms to track a customer’s spending, investments, lifestyle, and other financial habits. The technology will then offer advice on improving your finances and making better financial decisions throughout the remainder of your life.
The financial industry is undergoing some significant changes with the help of innovative technologies. While there are some concerns about how these technologies will alter the industry permanently, the benefits they provide are undeniable. So far, it seems that the financial industry is only scratching the surface of what’s possible with these innovations.
