When financial services and technology come together, the banking industry goes through major upgrades. The year 2020 has brought with it many such advances, and with them FinTech industry has reached a larger audience than it previously had. FinTech companies have branched out to a wider demographic and now have hi-tech infrastructure as well.
So is FinTech the future? Here’s what you need to know about banking and FinTech.
What Are FinTech Companies?
FinTech is a term that combines technology with financial services. FinTech companies aim to help companies, businesses and buyers have more control and understanding over their financial activities. One major way that this is done is by developing software that makes it easier to handle your finances and transactions from your smartphone and computer.
However, technological advancements in the financial services sector has since then expanded to cover more than just transactions. Here are some upgrades you should be expecting to see in the upcoming decade.
The Advancement of Artificial Intelligence
AI has been making rapid progress and will not step back when it comes to banking services either. So far, machine learning has made data collection much easier and can collect more accurate and in-depth information about consumers. This makes analyzing data easier, providing customers with a higher quality user experience.
You’ll also be able to have more access to voice controlled options, making your activities seamless and hassle free. Voice technology makes it easier for you to access customer service and get faster, more accurate solutions to your problems. It’s an advancement not only for the customers to navigate through apps, but functions as real-time customer service as well.
Higher Internet Quality
With market upgrades come internet upgrades. Banking services in the new digital era now require 5G internet to provide consumers with faster, more efficient banking options. The faster internet will not only make banking easier for you, it makes it easier for your bank to develop a more advanced infrastructure.
The use of voice controlled activities will be more convenient as well, because your questions will be answered more accurately, making customer service much more effective.
Cyber Attacks and Security Issues
With all upgrades in technology, there are a few setbacks before it is ready to hit the road. When you initially start using newer FinTech services, there are chances you might become victim to a cyber attack or a security threat. Until the new technology has not been tested and secured over the course of time, these risks remain.
Many FinTech companies face the issue of keeping their consumer’s information safe from hackers. Cybersecurity is a constantly evolving field, because new threats and issues rise up constantly as hackers learn how to work around the security. The price of convenience sometimes comes with a cost, however, most companies have developed systems to limit the danger or cyber threats as much as possible.
With every advancement in technology, there are areas that still need improvement. However, the advancements in FinTech are sure to create a new medium for consumers to carry out banking and transaction activities without having to leave the comfort of their home.