This year has seen many innovations within the financial services industry. Technologies such as Big Data and AI are being widely adopted and new ideas are appearing every day from FinTech start-ups. Which technologies are worth keeping an eye on in the second half of the year? Which innovations are going to be in trend? Let’s find out together.
1. More shared technology with the big tech companies
Large technology companies such as LINE, Alibaba, or Flipkart have cutting-edge innovations and large networks of users. Cooperation with these technology companies provides a great opportunity for financial businesses to create fully-integrated digital products and services and play a greater role in people’s daily lives. Many financial institutions are expected to collaborate with technology companies to develop innovations that meet the evolving needs of their customers.
2. Technology will be used to create new customer experiences, help employees to work more easily and create new products.
Modern technology is evolving rapidly, accelerated by the policies of the Bank of Thailand (BoT).
The BoT made two important announcements in the first half of the year: to allow banks to develop the use of biometrics, such as facial recognition and fingerprints to open a bank account (this will be launched to the market in the third quarter); and allowing banks to have their own sandbox to test innovations. These are in addition to those that are required to be tested in the BoT’s Regulatory Sandbox. This will allow banks to be more independent as they can experiment with diverse innovations but still remain under the supervision of the central bank.
As financial institutions use technology to support their operations, AI and Big Data will be increasingly adopted in areas such as user experience, customer care, information, products, robo advisory services and work efficiency.
3. Start-ups – from disruption to collaboration
FinTech start-ups used to be regarded as disruptive to traditional financial institutions however now both sides are more interested in collaboration. This will enable financial institutions to meet consumers’ needs in new and exciting ways while start-ups can reach a wider market.
4. Increased efficiency with automation
Automation of processes has become a necessity in the business world. When talking about this technology, the first thing many people might think of is Robotic Process Automation (RPA), software which transforms workflows into automated processes. For example, instead of employees transferring and checking data by themselves, they can use computer bots. This reduces manual work and enables employees to work in ways that create more value, while at the same time reducing processing time and errors.
Another interesting aspect of automation is the use of technology for checking applications and making approvals. AI has an excellent track record in analyzing data and making decisions about credit approvals, while Smart Contracts can verify that initial conditions have been met before moving on to the next step.
5. Better service SMEs
Small and medium sized businesses play a huge role in driving the economy but face many challenges. Financial institutions can help them to meet these challenges through the use of digital tools. We can expect to see new products designed specifically for SMEs in the second half of this year. These services will use AI, Big Data, and other technologies in areas such as data analysis to decide whether to authenticate a loan. There will also be services from banks that will help SMEs to work more systematically, such as account management systems.
This year will see digital technology playing a more important role in bank operations. The commitment of Bangkok Bank to be a leader in innovation has led to the creation of Bangkok Bank InnoHub, the first global FinTech accelerator program in Thailand. This will help the bank to adopt products and services that meet the needs of customers in an ever-changing world. These five trends should be followed closely to see what new products financial institutions will develop and put into use for the real world.