Technology Trends Driving The Finance Industry

New technologies have long defined the future of the banking sector. The biggest challenge is figuring out which of these developments will be most relevant to a particular company. We are at a crucial turning point. The observation of technology trends in the financial industry has never been more important. The strong competition from fintech companies and high-tech giants has increased consumer expectations within the industry. Since then, banks and credit unions have invested heavily in the use of new technologies to develop successful future strategies.

Technology trends in financial services

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Machine learning in the financial industry

Many banks are faced with the immense problem of keeping up with fintechs, as they can usually adapt to changes much faster and more agile than the big financial institutions. On the other hand, the established banks have more experience and data that they can use. This means that banks can reduce costs, deepen customer relationships and make compliance more efficient by using powerful AI and machine learning. Numerous financial institutions are now using machine learning to optimize all work processes (from risk analysis and fraud detection to marketing) in order to make data-driven decisions.

Cloud-based service models

The demand for cloud-based solutions is increasing. The near future promises cloud infrastructure as a standard web server environment and as a go-to environment for companies, also to accelerate digitalization in the banking sector. Cloud-based service models offer a realistic way to increase your own value creation potential and reduce complexity and costs. Banks are already using Amazon Web Services and other well-known cloud providers for efficient email management, human resources, software development and testing, customer relationship management and other tasks. Even if these are not directly related to the core business of banks, many shareholders assume that it will not be too long before almost all financial institutions will use the cloud for their basic services.

Open Banking

The concept of open banking for financial services is based on several principles:

  • Introduction of open APIs (Application Programming Interfaces) with which external developers can develop applications and services for financial institutions
  • Faster, simpler and more efficient financial services for customers
  • The implementation of these principles through the application of open source technologies
  • Data sharing is usually done through an API, an intelligent connection that enables the data flow between systems.

APIs can implement the formatting of the data derived from a software application in order to insert it unchanged into the next application.

What does this mean for the consumer? Open banking allows account holders to switch from one provider to another much easier to get the best conditions.

Intelligent anti-fraud solutions

The challenges of cyber security have become an everyday struggle for banks. Research shows a clear increase in hacked and publicly available data coming from common sources such as mobile devices and IoT devices.

Cyber attacks are nothing new to banks. An increase in attacks suggests that conventional solutions are no longer sufficient. Analysis technologies are becoming more and more precise in identifying areas and activities where there is an increased risk. Banks that succeed in detecting fraudulent transactions or cyber attacks will also be able to build more trusting relationships with their customers in the long term.

Voice Banking

Intelligent voice interfaces enable real-time communication and interaction between human users and a virtual assistant. This makes it easier to use hands-free devices and to respond quickly to questions and problems. Market leaders in private and mobile consumption include Siri, Cortana, Alexa and Google Assistant. Voice banking in particular is a perfect solution for older and restricted customers to avoid complications on the way to a local bank. Top fintech companies are increasingly developing APIs that voice assistants can skillfully integrate into banking systems to drive efficient voice banking.

Digital Banking

The digital bank is no longer a vision of the future. More and more financial institutions are replacing their physical branches with purely digital offers, thus meeting the requirements for new customer communication. This must be fast, interactive, personal and available everywhere. This turns into a risk that traditional banks have successfully relied on for decades. Financial institutions should therefore also develop efficient startup relationship management programs in order to use the technical know-how of fintechs for the development of digital solutions.

Finance has created more innovative products and services than ever before. In order to keep up with the agile pace and discover competitive advantages at an early stage, banks should continuously monitor their corporate environment and examine them for risks and opportunities.

Handling Your Financials with Greater Ease Using Finance Apps

It is imperative to have effective and efficient control of our cash flow and if we are at an urgent need, fortunately for us that we can use the loan services from https://långuiden.no. On the other hand, if our ancestors were able to create and program state-of-the-art accounting systems in monitoring their expenses and earning. But today, things were different as situations become a lot simpler and there are various personal financial applications that can help.

As a matter of fact, there’s already decent number of applications that you can find over the web. However, with the right measures and steps taken, you can get the chance of joining market leaders. What you should do is to develop a financial application that ticks all the boxes:

  • Security
  • Useful features and;
  • Intuitive

Financial management applications have set its place in the market and many people have been using these apps to gain control of their cash flow cycle. The truth is, we must be glad to experience this level of comfort and convenience it brings. For back in the old times, what a person would do in app has to be done by hand.

With the introduction of smartphones, it enabled computing of expenses be done on the go. In fact, creating an app these days is easier too with some allowing you to have drag and drop options. Basically, if you wish to turn it as another source of profit, you can do too. But in such a case, it is essential to think of the requirements that people will have, their expectations from the app and so forth.

Functions and Types of Financial Applications

Financial management apps are designed to carry out specific tasks and simplify what seem to be complex procedures into an easy to understand process. Regardless, the primary goal is to assist users in managing their budget. Additionally, you should know that these apps come in two variations, but all of these programs can be broken down into 2 categories:

  1. Simple applications that are requiring manual data entry and;
  2. Complex services that are automating entry process

Simple Finance Application

As mentioned, it’s the simply financial management app. Here, the user has to input all their spending habits by hand. These apps will be monitoring the expenses and categorizing them such as transportation, groceries, utilities and everything in between.

Complex Finance Application

This is the upgraded version of your typical finance application. Here, the user’s account as well as bank account is connected to the program where it automatically receives data from every transaction.