Did you know that the neobanking segment is expected to show revenue growth of 39.9 percent in 2023, and the number of users in the digital payments segment is growing to 5,197 million users by 2026. Those aren't just big numbers, those are the signal that we’re at the gates of a digitized and automated financial sector.
Disrupting technologies are being designed to radically change how we interact with financial environment. As innovations grow rapidly it’s time to reflect on the new technologies that are about to shake your CFO’s world.
The information technology infrastructure in banking and lending institutions is seeing a lot of investment. Their goal is a simple one, they want to increase profits and the quality of their services. If you're employed in this sector, pay attention to the latest innovations – things are about to change.
No longer do customers don’t have to go through tedious processes to get a bank account. The three-pronged Digital account opening (DAO) process now allows customers to open a bank account remotely. It keeps clients in contact with their financial service providers via automated communication channels and gives businesses 24/7 accessibility to address any urgent payments and financing difficulties with their bank.
DAO enables banks to collect critical KYC (Know Your Customer) data and automatically employ digital identities and biometrics to confirm account creation. This software solution provides clients with a seamless user experience. It thereby helps banks to establish a lasting first impression, resulting in increased earnings. More entrepreneurs will have access to banking services and more people will have a digital banking presence, continuing the shift away from cash.
Artificial Intelligence aims at creating a fluid and excellent user experience with financial services. One of the greatest advantages of chatbots is their capability to codify and store data collected through human interactions and clickstream data. This characteristic can be applied to other applications that may complement data science elements for customer assessments. Because of this, we should see a simplification of complex financial tasks. We will still need accountants, bookkeepers and CFO’s, but with the rise of technology we will depend on them a little less for more mundane tasks.
Machine learning models drive fast predictive analysis to manage funding decisions. Innovative technology can provide useful tools like financial health scoring to modern-day banks that prioritize fraud and risk management. Concerns amongst executives at credit and banking firms have skyrocketed to 20 percent in 2021, machine learning has become the disruptive solution to mitigate this.
Loans have also scaled to a new level of innovation. The previously tedious process of loan origination (when a borrower applies for a new loan, and a lender processes that application, usually in a myriad of spreadsheets) has been altered by the digitization of data processing. Loan approvals can now be made in record time. With deposit levels soaring, the industry's focus has turned once again to lending, and digital loan origination systems finally crack the credit business.
In summary, technology applied to the world of finance is expected to pick up the pace with banks and credit recipients increasing the adoption of new tools throughout 2022 and beyond. Don't waste time – start implementing these IT tools progressively if you want to keep pace with the new developments in this rapidly changing space.