Companies, business owners and consumers get a better chance to manage financial operations by utilizing specialized software combining the best from finance and technology!
Portmanteau for Financial Technology, “Fintech” covers the competition between traditional financial methods in the delivery of financial services and emerging information technology industry that makes use of techniques to improve activities in finance. While problems and opportunities go hand in hand, simultaneously needs and wants to go parallel, which accentuates the necessity to note the distinction between the two; to avoid the urge to splurge!
When financial planners and advisors put in a financial plan, they advise their clients to meet their needs first and then introduce some of the easily achievable wants into the plan.
So, is it time to review your current financial plan?
Usually, the financial plans must be reviewed on a regular basis, once or twice a year. This is important to ensure that market forces have not pushed your financial plan to veer off track which ultimately may stop you from meeting your financial goals. A review would point out if you are off track. And if it shows that your investments and other financial products are not performing as planned, then you would need to rebalance your portfolio to put the plan back on track. Reviewing is not an easy task. You may need the help of a good financial partner to do the same and if needed suggest a remedy.
Technologies That Will Disrupt Financial Scenario in Coming Years
These technologies will help you overcome the investing inertia and make every idle penny count:
- Everyday Banking (Mobile): Even after endless years of resolution to manage our finances we allow our idle funds to lie in savings accounts, idle and unutilized. But smartphone applications have introduced cashless payments, thus putting an end to the money hi-jacking. Examples include NFC payment apps like Google Pay, Apple Pay, Android Pay, Paypal, Samsung Pay, Square Wallet, Visa PayWave, Lifelock, etc., and BLE (Bluetooth Low Energy technology that is applied to PayPal’s beacon and Apple’s iBeacon), etc.
- Wearables in Banking Transactions: Contactless payments are also possible with wearables like Apple Watch Samsung Gear G3, Lyle & Scott bPay, bPay band, Scan-and-go shopping technology, PayCapsule-Flex and similar projects, Zelle clearXchange (online digital payments network formed by Bank of America, BB&T, Capital One, JPMorgan Chase, PNC Bank, US Bank, Citibank and Wells Fargo.
- Biometric Fingerprint Readers in Banks: There are examples of various banks that have started making use of Iris, facial pattern and even voice patterns for authentication like: The Royal Bank of Scotland and NatWest (make use of Biometric Payments Card), Wells Fargo: (make use of Eyeprint Authentication), Citi (make use of Voice Authentication), Bank of America (Fingerprint Authentication, Iris-Scanning, and App Linking), Barclays (Finger Vein Reader Technology) and many more. These have by far proven to be next frontier of authentication as passwords and user ID’s continue to be vulnerable to cyber-attacks.
- Voice Activation In Banks: Bank of America, Emirates NBD UAE, ICICI India, KEB Hana Bank Korea are few examples of financial institutions at the forefront of voice-powered banking.
- Use of Cryptocurrencies: Users distributed smart contract system to create a transparent, secure, immutable and reliable ledger to document contracts, transactions, and records. Top blockchain development companies have created Cryptocurrencies based on Blockchain technology provides faster, safer and independent digital transactions.
- AI Automation: AI can bring advancements in chatbots, robo advisors, and other automated advisory solutions to clients. It streamlines processes and takes over repetitive “low-value” financial operations through chatbots and virtual assistance. It enhances a company’s ability going through large amounts of unstructured texts and data to find hidden insights.
- Regulatory Technology (RegTech): Services and tools using Big Data and Cloud Computing enhance a company’s ability to monitor, report and comply with regulatory requirements. It makes use of algorithmic platforms and predictive analytics, automates compliance tasks, and reduces risk fraud, perfects authentication and identity management. It decreases compliance costs, increases transparency and consistency for internal and regulatory needs.
- Open Banking API Platforms: Through open API’s, banks can give more transparency and access to banking data to both users and partners. Banking-as-a-service (BaaS) – FinTechs use a bank’s license to create better products and services. Banking-as-a-Platform (BaaP) is an API model that enables banks to retain their customers and provide better financial products. Card connect, PayPal, Forte Payment System, and Visa, etc. have created their API’s to make users access banking transactions with ease, thus adding to value chains and services.
- Big Data: These are new data sources such as mobile banking and IoT provide an additional layer of data gathering. Big Data analytics is necessary to rapidly and effectively combine these datasets for better insights. Banks provide personalized services and define better customer segments. Combined with AI, a company can use Big Data to discover hidden patterns for better risk management and fraud detection. This accounts for simpler and faster credit rating score and onboarding process allows banks to reduce cost and provide a better customer experience.
Demystifier
What happens when you get a gift voucher? Expressions are simply ‘fireworks’! But it is almost definite that most of the users don’t actually spend too much time thinking about the best ways to use it, in the very next moment; all they want is to quickly utilize it. Prudent investing should be a conscious choice for users (people of all ages – with a special mention to youngsters), as good investments appreciate in value over time, gaining from the power of compounding over the years. Admittedly, investing before spending may not come automatically to a generation brought up on consumerism. But it is a discipline that ought to be developed. Mobile is #1 opportunity in the FinTech industry, mobile banking connects the end user to a variety of financial services and enables financial transactions on the fingertip, anytime anywhere. Every mode of payment discussed above comes with its own challenges but are secure, easy and convenient way to do transactions, owing to numerous transactions in coming years.