Disruptive Impacts of Technology in Finance and Banking Sector

By CIOReview | Wednesday, June 27, 2018

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The impact of the technological revolution on the financial world has changed the way businesses operate and the role they play in delivering products to customers across different sectors. A report compiled by PricewaterhouseCoopers suggests that 77 percent of finance houses will raise internal efforts to innovate and enhance their solutions, embracing the FinTech trend.

Several key businesses have incorporated numerous proofs of concepts into finance sector in order to develop solutions such as online banking, automated customer service, fraud detection and many more. Previously, a trained customer service team was a necessity for any company related to finance. But things started to change with the introduction of chatbots, which guides the customer to a corresponding executive rather than going through a series of redundant operations. Likewise, as AI becomes faster and smarter, human involvement is gradually diminishing. For example, debates have taken place questioning the need to pay a staff member when a machine would be more efficient.

The conventional banking practices are gradually fading as they get replaced by online banking solutions. The processes followed online are easy to understand and the transfer of money or payments for commodities is at the fingertips of customers. For example, while browsing a bank’s website, a customer can choose from an array of options for his or her requirements. Likewise, identifying or investigating fraud was a tough challenge a decade ago. But with developing technologies, there has been a steep fall in banking frauds as the culprit can be caught without much effort. Similarly, accessing one’s bank accounts through phones, computers, and tablets was a dream two decades ago. But now, it is the way of life.