Financial technology is disrupting the financial sector and enabling faster and more convenient services. It has also expanded financial inclusion by opening up services that until recently were a preserve for a few. Thanks to fintech, customers now also have increased accessibility, support, and personalization from financial organizations.
Here are six ways in which fintech is reshaping the financial landscape:
Virtual Financial Advisers
Virtual finance advisers, also known as robo-advisors, are changing how investors and traders receive financial advice. Robo-advisors have gained popularity as customers seek more convenient and affordable investment opportunities. With these platforms, users typically supply information detailing their age and investment history, after which the platform sets up for them a customized investment portfolio.
They also offer financial management services that could only be accessed by corporations. An example is tax-loss harvesting services, which allow clients to offset capital gains tax. Also, automation of financial advice is helping wealth managers to acquire new leads and enhance relationships with customers. They also enable them to offer more comprehensive services to clients.
Expanded Access to Financial Markets
Financial markets were once accessible to a minority – but thanks to fintech, anyone with a mobile phone and access to the internet can try their fortune in trading. Tech innovations like artificial intelligence are enabling automated trading – which can be done on a range of devices. It means investors can trade without the need for constant market monitoring and also in a less risky manner. For auto trading, the MetaTrader platform is one of the most trusted platforms out there. And recently, Android users can conveniently access the platform via the MetaTrader 4 for android platform.
Also, fintech is enabling a more accurate prediction of markets. Some platforms are now using aggregated data and network intelligence to predict possible future events. Also, stock traders can purchase and sell stocks from the convenience of their mobile device.
Chatbots for Improved Customer Support
Fintech is streamlining customer interactions – for instance, via the use of chatbots. These are AI software programs that converse with a user through messaging and mobile apps, websites, and even telephones. With these virtual assistants, customer care staff can spend less time on the phone handling basic queries and instead focus on more productive tasks. Also, the chatbot technology enables faster response to customer concerns and automates the collection of relevant data.
From the customers’ perspective, chatbots have the advantage of providing instantaneous and also round the clock assistance. Some chatbots even offer highly customized services for customers – an experience that was previously possible only with human interaction.
Omnichannel Consumer Experience
Digitization continues to take over the way customers interact with businesses. Financial institutions (FIs) are also leaving old-school procedures behind and moving towards digital operations. It has led to the advent of the omnichannel approach that unites a customer’s experience; whether offline or online. With this strategy, a customer can be shopping online using their mobile device, or at the brick and mortar store, and their experience would feel the same.
For FIs, this strategy means customers can have reliable and seamless interactions no matter what device they use and wherever they access services. It is also courtesy of “smart” branches that mesh effortlessly with digital services. With this streamlined communication, customers get a fun, effortless experience, and banks get increased customer satisfaction and revenues.
The digital transformation has enhanced openness in transactions, and financial organizations have not been left behind. Banks and other FIs are now engaging external solutions and third-party companies to bring innovation and new ideas. A good example is the German Fidor Bank that has developed a middleware that enables customers to borrow, access emergency loans, and even send money via Twitter.
With this integration between established banks and third parties, more processes such as loan application, evaluating creditworthiness, banks statement reporting, etc. will be more timely and convenient.
Blockchain and Cryptocurrencies
The blockchain technology offers a faster and more secure platform for a whole host of financial activities. And businesses in the financial sector are already looking to tap its potential to streamline operations like loan processing and record-keeping. Use of the technology also does not require a transaction fee, making it a cheaper alternative for banking transactions. With cryptocurrencies, customers will soon be completing transactions and payments quicker and more cheaply, saving them valuable time and resources.