8 Disruptive Fintech Digital Trends in 2019

Fintech or financial technology describes novel technology that intends to automate and improve service delivery in the financial industry. FinTech core aim is to help business owners, companies, financial organizations, and consumers to manage their financial processes and by extension, their lives. Fintech uses specialized algorithms and software on computers, and lately, on smart devices.

Financial institutions are at a significant crossroads, with new technology and fintech innovations disrupting the financial market. Technologies soon will be more efficient and customer-centered, with intelligent and more secure solutions.

Here are 8 disruptive trends in 2019 and the next five years.

Robotic process automation (RPA) refers to the utilization of software robots, which are intended for labor-intensive and repetitive tasks. RPA is ideal for many banking applications that require repetitive tasks. RPA is also suitable for businesses that require a lot of manual work. RPA can significantly reduce the workload for human employees. This leaves the employees with more time to focus on other tasks that require human input, such as decision-making.

RPA communicates triggers and interprets responses from other systems. RPA robots make no mistakes, never sleeps, and the cost of having one is less than actual employees in terms of output. In comparison to the traditional information technology solutions, RPA allows an organization the luxury of automation at a fraction of the conventional IT solution cost and time. Using RPA will mean that compliance and cost efficiency will no longer be considered as operating costs, but automation byproducts.

Artificial intelligence refers to the development of systems that can perform complicated tasks requiring intelligence. An intelligent machine is simply a computer that can understand, act, and learn how to respond. The system perceives its environment, interprets and analyzes received data, and acts according to the gained understanding.

AI is helping financial organizations with client care challenges. Data analytics helps to improve compliance and prevent fraud. Features such as digital payment advisors and AI chatbots significantly enhance service provision to more customers. This leads to improved revenue collection, cost reduction, and more profits.

The hybrid cloud gives banking institutions the benefits from both private and public clouds and improves compliance and data security. It has several advantages, which include cost reduction, operational efficiency, and enhanced innovation.

The hybrid cloud is fast gaining traction in the fintech industry. The hybrid cloud is a merger of the private and public clouds. It merges the high-security qualities of the private cloud with the ease of access and fast connection of the public cloud.

API stands for Application Programming Interface. APIs allow two different sets of software to communicate. In the banking industry, APIs can be useful in enabling Fintech companies to use bank data to help customers in innovative ways. For example, customers can use an application on a smart device.

The app allows them to keep track of their spending during a stipulated time like a year or a month. The clients, however, have to use a VPN(Virtual Private Network). A VPN is a secure tunnel which allows them to browse the internet safely and anonymously, keeping the clients’ traffic safe from prying eyes.

A VPN encrypts all their communication. Any time the client logs into the fintech app, their sensitive bank data is encrypted and kept away from would-be eavesdroppers on the internet.

Blockchain is a revolutionary technology, which underpins Litecoin, Dogecoin, Bitcoin, and other cryptocurrencies. It also enables these currencies to be secure, open, and anonymous at the same time. Blockchain is a database of every cryptocurrency transaction and is called a public ledger.

This public ledger holds metadata for every transaction and can be publicly assessed via torrent sites and APIs. The log is cryptographically secured to prevent tampering with records of past and present transactions.

Of late, cryptocurrencies are disrupting the banking industry by giving users cheaper and faster transaction options. Transactions via blockchain technology could save financial institutions a lot of money in processing costs. Already, many banks are experimenting with blockchain for record-keeping, money transfers, etc.

A quantum computer uses the basics of quantum mechanics to accelerate complex computation. Computing systems depend on the essential ability to store and utilize information. Quantum computers rely on qubits or quantum bits to manipulate data. The quantum computation procedure comprises one-bit and two-bit operations that make up the basis of quantum computing.

Quantum computing in fintech could offer new avenues for banks in trading and risk assessment departments, thus making faster computations.

Virtual and augmented reality is in use in some financial institutions to improve customer experiences. Both realities offer employees and clients a visualization of services and data via the projection. Both AR and VR can be used to provide clients with autonomy and make at home banking much more accessible.

AR and VR in banking can offer clients a better visualization of the banking processes. Using AR, you can watch your funds being moved from your account to another. A wave of the hand or nod of your head can be used as a substitute for complex banking processes and make it easier to use fintech applications.

Prescriptive security is a philosophy that tries to predetermine security procedures and controls based on the risks. Prescriptive protection aims to have a security plan based on a repeatable method, rather than on a hunch. Using a VPN is one such example.

As technology grows and disruptive technologies take root, cybercriminals get new avenues for criminal actions. There are advanced techniques to stop them in their tracks, such as real-time monitoring, analytics, and other tools that detect any potential dangers.

Fintech is growing by a considerable margin ever since the internet and smart devices revolution. In years gone by, fintech referred to the bank’s back office, while today it refers to a wide variety of tech-friendly interventions, which ease financial transactions.

Fintech today refers to financial tasks such as check deposit via smartphone, raising cash for a startup or investment management without any human assistance. Fintech mostly appeals to Millennials and seems to have less offer to the older generations. Millennials are more inclined to use their smartphones for everything in the search for convenience. In another few years to come, fintech will be the norm, rather than the exception, and the older generation will have to catch up or be left out.

This article is originally written by Brad Smith at TurnOnVPN.org

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