For many years, insurers and banks have used the same highly profitable but static business models. However, at present times, they are surrounded by innovators who are all ready disrupting their business. Peer-to-peer lenders, robo-advisers, bitcoin, crowd-funding, mobile payments, the list just goes on. It seems that there is no limit to the FinTech innovators.
Some people say that this has happened before. The digital cash and direct banks of the ’90s have garnered the imagination of investors and journalists in a similar manner. However, in the end, it only had little impact. As a matter of fact, financial services industry had been impervious to the previous assaults caused by the innovators, partly due to the importance that trust, scale, and regulatory know-how have played in this space conventionally.
However, investing in past performance isn’t an indicator of success in the future. Similar is the case with insurers and bank’s record to best innovators.
The new innovations are making big names in the financial service give a second though to the business model in a basic manner. FinTech, the new buzz word is becoming quite common in this sector. Here are some key areas where technology is having an impact on the financial sector.
Customer Service
One of the most significant ways in which FinTech is deranging the banking and finance sector is through customer service. Previously, a good customer service used to be an important aspect even for the finance companies. Anything which is related to handling financial and money matters requires trained staff who can help in sorting out problems and offer assistance to people. In fact they need to make the customers aware about the fake service calls and the frauds that are done to them using modern day technology.
However, in the present times, chatbots are becoming a trend for customers to interact with. AI that gets smarter and evolves is something that might appear good on paper but lacks a human touch. At times, it might not be able to cater to the requirements of people.
Online Banking
Banking is something which used to be done in a world that was non-virtual. People had to go to the bank to withdraw money, sort out finances, and transfer funds. You had to speak to a staff member sitting in a brick and mortar building. However, with time, online banking is becoming more sophisticated. You can pay for goods and transfer money simply with a click of a few buttons. It is easy to avail and the money is transferred in just a few minutes.
There are sites which enables you to switch between products and banks. We are living in an age where you will be able to access the bank accounts on computers, tablets, and phones. It is a thing that is deranging the banking sector and has a great impact on the consumers and the industry.
Entertainment and gaming is always first on the finance ball
Online transactions is really opening up in India right, and just how we have seen in US and many markets in Europe you find the entertainment sector to be the first to take a piece of the cookie. Many new online casino sites where you can play live casino and the super popular online baccarat is popping up like flowers in the spring. This results in many new job opportunities for the local population but also comes with a health risk for the consumer.
Fraud Detection
The identification and investigation of the fraud was equal efforts from machine and man. The system would track prospective fraudulent transactions but it was the staff that had been trained to look through the given information.
However, it with the AI process, it is possible to detect fraud and also identify it. As a matter of fact, the machine will also be able to track the victim’s history.
