Many things are going on in innovation in financial services we just can’t ignore. At the same time, trillions of questions arise concerning the types, the means, and the threat levels of innovation. We’ve made a roundup of some recent articles that might offer valuable answers for these questions. So read and decide: Is it time to trick or treat?
4 Ways Technology Is Transforming Finance
“Several tasks that were once handled with paper money, human interaction, and bulky computer systems are now conducted entirely on digital interfaces.”
Don’t let yourself be discouraged by acronyms and buzzwords: this article contains all the necessary information about the basics of technology for financial services providers. If you never knew how the Internet of Things can help improve insurance service quality or how Artificial Intelligence or Machine Learning will enhance customer experience, or how blockchain reduces process times and transaction costs, now is the time.
Fintech and Banks: How Can the Banking Industry Respond to the Threat of Disruption?
“Even in 2017, only 7% of credit products in banks can be handled digitally from end to end.”
Fintech is a factor that traditional financial services companies have to take into consideration. For some, it is a threat, for others, it presents new opportunities and opens new business channels. Toptal has published an extensive article about the possible reactions to fintech disruption by banks. Surprisingly, the battle will not be about renewing the consumer-facing, front-end type of service structure. The potential instead lies in rebuilding the back-end, to create new processes by digitalizing them. Unbundling of services can also be a way to survive.
How Artificial Intelligence Can Deliver a Personalised Banking Experience
“AI could also help banks serve their customers more effectively by giving them easier access to relevant information.”
Artificial Intelligence (AI) and Machine Learning will undoubtedly bring cost savings, as well as new revenue streams, to the financial services sector. It is just as clear that the opportunity for personal interactions, once a bloodline of financial services sales activities, will become scarce. Bridging the gap between the two trends is essential to keep the loyalty of customers who want personalized treatment. An often overlooked improvement AI can bring is enhancing the customer experience of in-person interactions. For example, advisors can provide immediate advice to less typical questions through apps instead of having to spend time on consulting the relevant experts.
In Financial Services Innovation, Disruption Isn’t Everything
“With a more modern and agile IT infrastructure in place, a small bank can examine how to manage compliance while fostering better user experiences in a low-cost operating environment.”
Buzzwords aside, there are still more fundamental questions than what is AI that one needs to answer when talking about financial services’ future. Innovation, according to Amir Wain, founder and CEO of i2C, is a commercialized invention. When we talk about innovation in financial services, we need to translate ideas into commercial concepts. And those are only viable if we solve critical customer problems. On the other hand, technology can be the answer to the severe complaint about compliance issues hindering innovation, because many times, technology itself can ensure continuous compliance while firms can focus on developing more innovative services.
Artificial Intelligence: The Legal and Regulatory Challenges
“Boards will have to ask probing questions about what checks and balances are built into the new AI-driven systems and ensure that the quality of management information is appropriate.”
Artificial Intelligence, or AI, poses a problem for insurers on more than one front: it’s excellent capacities, and future potentials call for even more cautious legal and regulatory processes while meeting technological requirements. While the regulation still strives to be tech-neutral, legislation such as the IDD will surely test its boundaries. There is a definite demand to deliver more benefits than risks in an environment increasingly reliant on innovative services.
The Future of RegTech: A Skyrocketing Industry?
“While the RegTech concept is innovative in itself, many FIs are already pushing the envelope and utilising RegTech as part of more complex collaborations in order to achieve regulatory compliance.”
Regulatory technologies, also known as RegTech, are newcomers to the market at the intersection of financial services and technology. Its birth is justified by the ever stricter regulations and the trend of digitalization in all industries. Implementing RegTech can be a significant cost-saver and enhancer of effectiveness in such traditionally resource-intensive back-office functions as compliance. The only problem that exists is the lack of balance in the skillsets of RegTech companies: they are still more technology-focused and less experienced in compliance issues.
SCOLVO Sales – the ultimate personal selling machine for financial institutions has arrived!
