Technological revolution has left no industry untouched, and the finance industry is no exception. This year, the finance sector is expected to undergo more changes that altered the customer behavior in a number of ways. These trends have compelled the institutions and financial planners to devise and revise their business models and cope with the rapidly changing, tech-driven financial processes.
1.Robotic Automation Process
Robotic Automation process, a.k.a. RPA, helps in overcoming the main challenges of the financial world. It is improving the cost-efficiency by replacing human labor in no-brainer yet toilsome projects, and speeding up the process to save 50% to 70% cost on those automated tasks.
Moreover, RPA also stimulates the agility in the financial sector. The frequent changes in the operational processes occurring after short intervals are properly managed with automation. Also, RPA increases the quality and customer services while keeping the exception expenses minimal.
RPA provides real-time analysis and insights into the finances. It further increases scope of data availability, provides well-measured initial analysis, and proposes conclusions that collectively lead to enhanced decision-making.
Back in 2016, Fujitsu made an agreement with Thoughtonomy to integrate RPA into its processes and tools, which later on delivered a deeper insight into the investments, increased the number of IT budgets and minimized risk of technological implementation.
To sum up, Robotic Automation Process brings value to the financial functions. It alters the processes entirely to multiply the value and benefits in the field. RPA is here to stay and soon will drill its way to be an integral part of the financial world.
2.Predicting Stock Market With Sentimental Analysis
We produce tons of data every day: around 2.5 quintillion bytes, to be specific. Sentimental analysis makes sense of this data and helps companies to derive valuable knowledge and insights from it. Today, it is being used in the stock market to evaluate the market sentiments of the resources that are merchandized in the stock exchange.
StockFluence and Crypto sentiment were founded to forecast the stock market based on sentiments and predict market behavior, such as estimates, investors’ preference, and anticipations about the financial trends. Many companies and professionals, especially fixed income investors, have been using the machine-learning model to forecast the delinquency of hard money loans.
Sentimental Analysis can easily fill up the gaps in areas with scarce data. However, the question here arises that how will the technology predict stocks that are expecting the price change. It is quite possible that in the near future, we’ll see a more sophisticated and effective version of Sentimental Analysis.
3.Omnichannel Approach To Future Payments
Omnichannel has become the new normal. It involves connecting all the touchpoints to ensure seamless customer experience. Changing the way customers shop and make payments, a powerful omnichannel management strategy can assist organizations in managing marketing campaigns, POS integration, inventory, and customer relationships, all from a single unified platform.
Retail and hospitality sectors have started to deliver pleasant experiences with Omni-channel strategies. The financial sector, from banking to retirement services, is going to match up their pace with companies like Amazon. Customers expect the baking service providers to ensure a convenient and user-friendly Omni-channel experience that remains consistent across every touchpoint, be it desktop, laptop, or smartphone.
IT companies have been making it easier for the banking sector to provide their users with digital banking experiences. These institutions are expected to collaborate with the companies providing BasS and BaaP.
This will allow the consumer to access all the account through a single application and make transactions in a click or tap. Thanks to the cloud, the data of all the individual customers will be stored online, and users will probably be able to receive personalized advice regarding the financial assets.
Fabricating partnerships with new digital platforms, the banks, and other financial institutions can ensure a remarkable mobile experience. Minimizing the void between traditional banking present services and fintech shortcomings, BaaS providers are planning to develop cloud-based API driven products that will ensure maximum simplicity, speed, and security.
5.Blockchain and smart contracts to manage supply chain
Smart contracts are already-written logics saved and copied on a distributed storage platform, such as Blockchain. Smart contracts help in making credible transactions without any interference of the third parties. They can serve as “multi-signature” accounts, which ensure that the transactions cannot be made unless a certain percentage of people give consent.
As businesses today (especially ecommerce) depend on global supply chains and ecommerce payment processing, the logistics sector has an integral part to play. Not long ago, the supply chains were transferring the paper documents physically through courier service that are prone to thievery, inefficient tracking, or misplacement. Even if it survives the unfortunate scenarios, the banks and third parties take an age to deliver the paperwork of a single transaction.
Smart contracts can transform the supply chains by stimulating the supply streams over the internet. Using Big Data analytics, smart contracts can provide a reliable ledger for the Blockchain transactions. Furthermore, they reduce the inefficiencies of paperwork, costly delays, and lack of transparency while opening new doors to faster and smarter processes across the whole supply chain.
The aforementioned trends are going to take an active part in revolutionizing the financial sector. Technology has been very unpredictable; it surprises us every day. Let us just have our fingers crossed and wait for these trends to influence our personal and corporate sphere in the years to come.