Fintech: The Future of Wall Street?

Technology has been playing a major and crucial role in enhancing the experience of consumers. When it comes to financial services, several FinTech startups are working with the new age technologies to create a user-friendly platform. The five trends that have shown the caliber to take banking and finance to greater heights include:  

Blockchain: According to a McKinsey report, blockchain-based technology is perfect for banks as it records transactions on a digital ledger which improves data security due to its limited access. By 2020, blockchain is predicted to power the production systems of 77% of the world across banks. 

Internet of Things: The data collected via the ecosystem of connected objects (IoT) helps companies to provide quicker customer support by developing user insights. The IoT revenue is expected to reach 3 trillion dollars connecting more than 50 billion devices by 2020. 

Artificial Intelligence: AI in finance has led to multiple benefits and applications such as fraud detection, chatbots, crisis prevention, credit score generator, etc. As per a recent study, implementing AI models helped banks in Singapore cut their costs by 17%. 

RegTech: RegTech will help businesses cover both compliance and risk management. It will also provide opportunities in terms of competitive advantage, innovations, and technology integration. 

Robotic Process Automation: According to current RPA reports, it is expected to be a $3bn industry by 2021 which will help banks cut processing costs by 30%. This would be possible by automating customer service, compliance, KYC, fraud detection, etc. 

 Seeing the pace at which FinTech is growing, don’t you agree it is the future of finance and could possibly replace banks?