5 ways fintech is changing the financial services industry

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Financial technology or fintech is used to describe new technologies that are used to improve and automate the use of financial services. With innovative technologies, online casinos offer a variety of payment options and you can also play the top slot games after making a deposit. Here are the 5 ways in which the fintech revolution is disrupting the financial services sector.

Banking Chatbots

Chatbots are bits of software that are designed to mimic conversation with human users. Using machine learning and artificial intelligence, chatbots can assist customers without the need for a customer service agent. Chatbots such as Erica also provide investment advice to Bank of America’s customers. Robots used by various investment firms scan customer emails for trading instructions and execute them on their own, reducing the operating time from 45 minutes to two minutes. As chatbots continue to evolve and become more advanced, customers will see a shift in focus from internet banking to conversational user interface (CUI).

AI for Fraud Detection

The main aim of anti-money laundering departments is to identify fraudulent transactions. Most banks employ security experts and software to detect frauds. The software alerts the possibility of a virus attack or a fraudulent attack and then the human investigator takes note of the alert. With the increasing severity of attacks, this process can result in loss of data and can cost banks millions of dollars.

Recent researches have proved that Artificial intelligence has the potential to detect fraud by analysing vast amounts of data and detecting suspicious behaviour patterns. It tracks the behaviour of transactions and checks the progress with each completed transaction stage.

Omnichannel Customer Experience

An omnichannel experience that meets customer demand includes mobile and multiple messaging channels, such as live chat, email and SMS. In banking, an omnichannel experience means users will get seamless and consistent interactions online as well as offline. Financial institutions have migrated their sales and transactions to digital channels. This has helped them to offer an enhanced and unified banking experience.

Fintech start-ups now offer the software to banks to adopt multi-channel messaging combined with AI, machine learning and automation to streamline communications between financial institutions and their customers.

Blockchain for Digital Transactions

In the financial sector, blockchain has the ability to save millions of dollars by reducing processing costs. All major financial institutions are implementing blockchain for money transfers, record keeping and other back-end functions. The distributed ledger system of blockchain technology leverages strict controls and enables smart contracts as well as auditable data. Blockchain enables banks to access a single source of information. It also allows financial institutions to track all documents and use the digital platform to validate ownership of assets.

Biometrics for Enhances Security

Banks are constantly finding ways to use biometrics as an extra layer of security to authenticate transactions. Biometrics promotes faster authentication and eliminates the use to remember multiple passwords. In fact, the major banks have started investing in biometric-based authentic solutions.