FinTech is transforming the financial services industry, and will continue to do so as the industry undergoes revolutionary changes in financial literacy and services. Let’s take a look at some of the trends that will dominate FinTech in 2019.
AI Call Center
AI voice assistants have significantly evolved over the past few years, as reflected by the launch of Google Assistant or e-reader. Banks are now looking to implement AI voice assistants to digitalize their call centers to enhance customer responsiveness and experience. In fact, OCBC Bank has recently collaborated with Google to launch its first AI-powered voice banking in Singapore. With this game-changing technology, customers can pose general banking questions, calculate loan interest, plan future savings, and search for nearby branches or ATMs while receiving instant and accurate responses. In addition to these features, the technology serves as a perfect solution for detecting fraudulent phone calls.
Digital banks are expected to dominate the industry in 2019 as customers can conveniently carry out transactions via websites and applications. According to a recent survey (from adobomagazine), 65% of the world’s population own a smartphone. With an upward trend in smartphone ownership, more customers will have access to mobile banking applications, enabling them to connect with banks anytime and anywhere. Even so, digital-only banks have to add increased functionality to their applications every 2-3 months to stay competitive in a world of constant change. For instance, Revolut – a digital bank – offers both currency and cryptocurrency exchange services on its application, allowing customers to control their finances at their fingertips.
Biometric technology has been adopted to counter the major challenges of FinTech, specifically cyber-attacks and data security which are the top priority for the financial sector. In addition to fraud prevention, the technology also provides customers with faster authentication and eliminates the need to remember their passwords. With its wide-ranging security applications, biometric authentication such as voice, fingerprint and facial recognition is expected to gain popularity in the banking and financial services industry. Indeed, several banks have already deployed biometrics-enabled ATMs that allow customers to withdraw cash or complete other transactions with a simple fingerprint scan. In Japan, there are currently over 80,000 biometrics-enabled ATMs. Other countries such as China, Brazil, and India are planning to follow suit in the very near future. Apart from the application of biometric technology in ATMs, various banks have begun investing in biometric authentication that uses smartphone cameras to scan the iris. For instance, Lloyds Banking Group has partnered with Microsoft to launch its new security features that allow users to log into their bank account via fingerprint or facial recognition.
Cloud and Quantum Computing
Cloud and quantum computing will play a major role in the banking and financial services industry. Cloud computing will facilitate banks and other financial institutions to develop applications, improve customer services, and store complex and large amounts of data. Meanwhile, quantum computing will enable banks to exponentially accelerate the transmission of data to their end customers. The successful implementation of IBM’s quantum technology at Barclays has attracted the attention of various banks as they begin shifting towards quantum technology to achieve higher efficiency.
In 2019, FinTech is expected to continue driving significant changes in the financial sector by facilitating a more efficient, convenient and secure environment while reducing errors. The rapid pace of technological advancement means FinTech will continue undergoing a lot of change in the future.