It is not quite evident what potential technology possesses to bring a complete paradigm shift and disrupt any industry. The financial industry and related businesses are no exception.
The transactions which needed us to go to the nearby bank, stand in the queue, and wait for a few days can now be accomplished at midnight from your phone within a few minutes. Thinking this is the epitome of technological revolution for the financial industry will be foolish as there’s a lot to come.
Over the past decade, there have been some slow yet highly impactful changes in how banks & NBFCs work. Now is the time for the financial industry should fasten its seat belts to experience a rapid disruption across its operations with the technology.
Let us see a list of technological advancements that are about to happen in the financial industry.Artificial Intelligence Robotics & RPA Blockchain Open APIs
In this article, we have tried to explain to you the importance of these technological advancements in financial institutions and how they are going to disrupt the whole industry.
1. Artificial Intelligence
NBFCs have already integrated artificial intelligence for a lot of operations including but not limited to customer service chatbots, automated credit/loan approvals, smart recurring payments, and more. A lot of banks are also trailing on the same track.
Artificial intelligence has a wide range of use cases once deployed holistically for financial institutions. After mulling for more than half a decade, a lot of financial experts are aligning towards implementing AI as soon as possible for their organizations.
2. Robotics & RPA
Robotics & automation have a broad spectrum of use cases when implemented. With the RPA (Robotic Process Automation) a lot of repetitive operational processes within a financial institution can be automated.
RPA can be deployed in two ways, with physical hardware robots or with the software robots implemented in the software solution for the financial industry. Both of these have a plethora of applications to offer like customer service, back-office tasks, and more.
In a survey done by Deloitte, only 21% of respondents did not consider robotics as a major disruptor for the financial industry.
Blockchain has been a flagship technology disruptor for the financial industry for the past few months. The famous or infamous cryptocurrency networks let it be Bitcoin, Ethereum, or Solana are based on blockchain technology.
Unlike AI or RPA, blockchain is not an easy technology to implement. It requires a tech infrastructure with very high computing power. Due to this reason, blockchain is making its space in the financial industry slowly but steadily.
4. Open APIs
Open application programming interfaces commonly known as Open APIs are acting as a catalyst for technological disruption in the financial industry. Single click checkouts, On-site checkouts, consumer fintech, and more are great examples of how APIs are contributing to creating a fintech environment.
Almost every internet-dependent company is using APIs today. This is going to be soon the scenario for banks and NBFCs too. Open APIs accelerate innovation and creates a collaborative environment.
Having looked at the list of digital technologies that are soon going to disrupt the financial industry you should not be entering into the panic mode but you should be embracing the betterment it brings.
According to a survey, financial industry leaders are eager to adapt and implement these disruptive digital technologies into their organization as soon as possible.
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15th Apr 2022
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