How technology is transforming financial services
06 June 2021
Technology has changed the way the businesses not only operate but also how they service their clients. The financial services sector has been one of the most innovative and forward thinking in adopting technology and technology-enabled solutions to reach their customers in new and imaginative ways.
To that end, we look at the ways in which this sector has been transformed by technology.
A PWC report, Financial Services Technology 2020 and Beyond: Embracing Disruption, has highlighted that the industry will change over the next 5 years, considering that the barriers to entry have decreased and disruptive Fintech companies are now able to attack specific elements of the financial service value chain with technology driven solutions.
Additionally, the emergence of open banking and API-enabled data sharing has presented various ways for financial institutions to enable a more customer-centric approach.
Banks, insurance companies, lending platforms and other financial institutions are now learning to exploit these vast sets of data to transform into data-driven enterprises, as they are now enabled by technologies like Big Data, Artificial Intelligence and Machine Learning. The demand for digital solutions has increased tremendously over the years but more so since the COVID-19 pandemic which quickly gave rise to the development and adoption of mobile wallets and peer-to-peer payment platforms allowing users to make payments from anywhere; biometric authentication allowing improved security, and Ai and voice technology improving convenience and speed. With more and more customers moving towards a cashless experience the competition and need for innovative solutions increases, which will force financial services providers to generate alternative methods to gain and maintain maket share.