2020 has been a rough ride so far for most industrial sectors, including finance. According to financial experts and also economists, it is essential to embrace the current disruption to arrive at a solution. That means, reviewing the forces that have disrupted the structure, competitive ambiance, and also role for the financial organizations, and also the societies and also the market where they function.
Financial technologies to rule, according to EJ Dalius
The post-pandemic regulatory structures are getting finalized, and also financial organizations must adjust their respective business models accordingly. Adding speed to technological modifications is a smart and also creative option. However, if it’s not well managed, it can get destructive. EJ Dalius, an entrepreneur, has been studying the finance-based technological advancements and also its real-world impacts. According to him, the three financial technologies to rule in 2020 are:
- FinTech will direct new business models
It’s been a long-time that since new market. Entrants faced challenges to make it to the financial sector. Things are about to change because FinTech disruptors are finding innovative solutions. Today, the disruptors are usually start-ups and also fast-moving. Companies concentrating on a specific advanced method or technology, from insurance to mobile payments. They have also targeted a few beneficial aspects of the financial services value chain. It is detrimental to incumbents who have subsidized less but crucial service offerings in the past. According to a PwC Global FinTech Survey, the industry respondents shared that half of their business. Might get lost to FinTech companies in the coming years.
2. Blockchain will create significant changes
Many industry verticals form a team to commercialize the technology for applying it to real-time financial solution cases. Hence, there might be an increase in innovation and also funding to carry on as the FinTech as blockchain shifts its focus to institutional use from a retail usage. Few organizations might cease to exist in the forthcoming yeas. And also with that, the blockchain technology will form an essential part of financial organizations and also its operational structure.
3. AI (Artificial Intelligence) and robotics advancements will lead to localization and “re-shoring”
Today, technology organizations and also incumbent financial services are joining hands. They are finalizing using AI and also robotics to address the crucial pain points, resolve risks, and also reduce expenses. They are also aiming at a particular mix of abilities: emotional and also social intelligence, logical reasoning, physical sensors, natural language processing, pattern identification, mobility, self-supervised learning, and also navigation. It might replace the bank teller and also move beyond. Some robots can sense minute details of the ambiance, respond to data, identify objects, and also respond to objects with meaningful behavior.
Additionally, customer intelligence will act as a crucial predictor for profits and also revenue growth. It’s essential to know what customers value. There was a time when customer intelligence was dependant. On easy heuristics developed from surveys, and also focus groups. Today, technological developments have provided businesses with access to increased data about what customers prefer. It’s a proper scope for companies to use analytics for unlocking the data to give customers all that they want.