As fintech continues to increase its influence, we will become more aware of its impact on our lives
Technology is constantly changing the way we live, and that is especially true of the banking sector. Fintech is one of the key technologies being used to transform how we manage our money on a daily basis, offering a range of benefits in a fast-moving world.
As fintech continues to increase its influence, we will become more aware of its impact on our lives, and to demonstrate some of the changes being made, here are 6 ways fintech is changing the way we bank.
Access to credit
People on low incomes or anyone with a poor credit history who have previously applied for loans can sometimes struggle to secure the funds they need. But new initiatives created by companies in the fintech sector are trying to change that by making loans more accessible. Peer-to-peer lending is also rising in popularity, bringing together lenders and customers via apps and online platforms using methods that differ from traditional models.
The most common way fintech is changing the way people bank is by facilitating access through mobile technology. Brick and mortar sites produce costly overheads for many financial institutions, which is forcing them to change their model, with as many as 868 sites closed around the UK in 2017. While cybersecurity remains an ongoing battle for many banks and building societies, customers now expect a mobile banking option to be made available, in a modern world that demands convenience and ease of use.
Artificial intelligence (AI) is the new frontier for every industry operating on or offline and banking is no exception. Machine learning tools are also being integrated into existing systems, making it easier for customers to pick and choose financial products, such as mortgages and pensions. Customer service is benefiting from the technology, ensuring a cost-effective alternative for banks, and faster response times customer queries. Chatbots are able to deal with many first stage inquiries, offering a text-based version of Alexa or Siri on websites and apps.
Many experts in the financial industry believe banking will eventually be replaced by blockchain at some point in the near future. The technology will enable customers to have more control over their money, such as transferring money from one account to another in a few minutes – no matter which country the accounts are based in. It could also remove many of the restrictions (such as minimum fund requirements) and fees that can often prove frustrating for customers.
Our smartphones are no longer just tools for texting, talking, and surfing the internet. They are now also portals able to offer convenient payment methods, be it for travel, retail spaces, restaurants, and more. Not only that, but there are a growing number of apps that allow you to make and manage investments on the stock market – some of them will automatically do it on your behalf, based on the parameters you set.
Cybercrime is one of the biggest problems facing the authorities and with our money now accessible online, it is imperative financial organizations have robust security measures in place. The use of AI, in particular, will prove vital, as it can flag suspicious transactions or activity much faster than previous online tools. Being able to stop and prevent criminal attempts at accessing customer’s money could go a long way to preventing millions of pounds being lost each year due to cybercrime.