2018 has been a promising year with various technologies like intelligent AI, blockchain, the cloud technology,and design thinking. Some of the latest financial technology trends that have impressed the world are as follows.
1. Massive savings in digital transformation:
Communications and retail are non-banking industries that have retained customer’s expectations from credit unions and banks. The customers have become digital, tech-savvy and demanding. The legacy bank model is pushed to assist various modes of commitment and develop digital efforts in a fast pace. Due to people’s rising expectations and increasing competitive pressures, banks all over the world are capitalizing in digital revolution projects.
2. A New Threat- Digital Only Banks:
As the entire banking business is changing to digital channels, it has become hard for digital only banks to sustain. They face various challenges to sustain in the competitive market of credit unions and traditional banks. The new online banking providers have come up with highly creative services and products with a mass plea to the present digitally savvy consumer. To stay ahead in competition, the traditional banks enhance their digital services and improve their scope to hold off the disruptors.
3. Associating with third-party services providers to bring customer centricity:
With the use of open APIs, the credit unions and banks could experience significant variations in the method they offer CX-based processes. Credit unions and banks are not anymore in part of the buyer journey, whereas Fintech companies are playing a major role in the customer’s journey. It has become common for the customers to adopt Fintech companies due to better services and they have left credit unions and banks behind. Their only option is to adapt or they would be left behind.
4. Cloud technology in the bank:
As the cloud computing systems are getting popular, banking organizations are increasingly adopting the technology. Their main aim to adopt is for regulatory compliance and security feature. It is continuing to the main and center of attraction in the banking domain. You can expect to experience bank-office and enterprise-wide-middle applications starting to move towards the cloud. Credit unions and banks will be forced to develop more cloud supported business models by the end of 2018. The usage of open APIs could bring consumer applications to cloud technology.
5. Big Data Gets Better and Bigger
The initiatives of Big Data are driving more complex and uncluttered business models with better visualizations and data tools. Though the starting efforts of data standardization have started, the financial companies are depending on legacy data infrastructure and architecture. The Big Data priority for 2018 is stepping with advanced and futuristic systems. Moreover, it needs new data organization to conform to the upcoming latest data needs like the PSD2 (Payment Services Directive II) and GDPR (General Data Protection Regulation. With those changes, latest ways of mining more worth from data has occurred, like data visualization, data lineage and data virtualization.
Other financial technology trends are Regtech, real time risk decisions through AI automation and design thinking.
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