Blockchain is the buzz word which has been on everyone’s lips of late. So, what is blockchain and how has it reshaped different industries today? Is blockchain worth to implement?
Before fintech adoption took place in the banking industry, it was tedious and time-consuming to go to the bank for any work. Customers would fret at the thought of waiting in long queues at the bank and banks had to figure out a way to efficiently deliver superior customer experience.
Now since simple processes are automated and transactions occur daily online with no worry, a technological revolution is here, and it continues to evolve. Opportunities in fintech have grown drastically in the past decade due to artificial intelligence (AI), machine learning and blockchain, the trinity of emerging tech.
Here are the top growing trends in the fintech sector.
Blockchain is the foundation on which most fintech companies are built. Data management is a gigantic task for most organizations, and with blockchain, banks are able to manage large amounts of customer data and transactions in a secure manner. This also means the loan sanctions, application, and disbursement of the amount can happen instantly over the internet. Blockchain maintains a simple, centralized ledger which can be accessed by banks real-time.
Since machines now have the ability to quickly track, manage and manipulate data well, large organizations have automated most of their administrative processes. This means a significant cost reduction and optimum efficiency at all times. Once simple processes get automated due to AI and machine learning it becomes easier for banks to shift their focus on value services for higher customer experience.
Regulation and Laws in Fintech
Since all transactions are carried out remotely and online, there are hard rules and regulations that are in place to reduce financial crime. Due to the blockchain, financial institutions are able to manage their customer records well thereby reducing frauds and theft.
Digital First Bank
Back in the day, people used to visit banks for all activities and transactions. Today, you can conduct most of your transactions online in the comfort of your home. Anytime and anywhere banking is the norm. Fintech has enabled individuals’ payments anywhere, thereby the need for the physical location of banks have drastically diminished. Banks and financial institutions are also training their employees in Fintech training to ensure that they keep up with the changing dynamics of the industry
Data Lending and Data Management
Due to the advent of cloud, it is very easy to manage large amounts of structured and unstructured data on the cloud and collaborate for data management. Financial institutions are considering lending data to each other to reduce crime and evaluate credit score.
Blockchain, AI, machine learning, automation, and cloud computing have significantly impacted the Fintech industry both in terms of creation of jobs and opportunities to grow businesses. The banking institutions are relying heavily on fintech companies to reshape the way processes are carried out and drive optimization and create exponential value to customers.