Innovations relevant to fintech companies: an overview of trends
Innovation is an effective and virtually the only solution for staying competitive in the fintech sector. According to the expert Chaslau Koniukh to be be successful, companies need to regularly offer improved products that can meet all customer needs. Fortunately, the development of artificial intelligence opens more and more opportunities for developers and is the main trend in the financial market.
The sector’s activities are related to massive data, and without the use of innovative solutions such as AI, IoT, and machine learning, progress here would not be possible. Artificial intelligence helps manage risk, automate a large number of processes, personalize services, and optimize all these activities so that they take minimal time.
One of the most important innovations in fintech is robo-advisors. Robo-enabled platforms allow you to manage your investments, build your own portfolio and tailor it to your individual characteristics and preferences. Bloomberg uses such technology for its stock prediction application.
Not only are fintech startups offering innovative solutions, but so are big names in the traditional financial world notes expert Koniukh. Among them is Canada’s Royal Bank, whose AI-based service helps select the best offer for each customer. In addition, the Central Bank of Canada uses modern technology to analyze financial activity, calculate forecasts and improve the efficiency of internal processes.
Another indispensable tool for fintech is chatbots, which can learn and thus improve communication with customers regularly. In this case, one of the AI models – machine learning – is used. This approach allows the robot to reduce the risk of fraud – it finds common patterns between similar situations and, based on them, predicts possible variants of hacking or data theft.
A key issue for fintech companies is the speed of data processing and transactions. IoT, or the Internet of Things, helps. The technology reduces the time it takes to perform internal processes and the time it takes to interact with customers and verify their data. IoT also makes it possible to manage complex operations through a smartphone, connecting multiple devices and exchanging data between them.
The implementation of blockchain technology in fintech solutions provides a high level of security. Through decentralization, the digital payment ecosystem is protected from hacking and data leakage. In addition, technology has made it possible to conduct transactions without the intermediary of banks. To keep up with the fintech sector, traditional financial institutions are also applying blockchain to their solutions. This, in turn, reduces fees for customers.
When considering the impact of innovation on fintech, we should also note the importance of augmented reality tools, especially gamification. This approach makes interactions with applications easy and engaging, which users love.