When financial technology (better known as FinTech) was introduced into the world, it was seen as an innovative way to lend loans to those in need, making the process much easier than any bank could. Since then though, FinTech has continued to impress the globe with more financial methods being transformed and optimised to make processes easier for both organisations and clients. Instead of lending, financial technology has now provided us with a range of solutions to improve the overall running of functions within the FinTech market, which we’ve investigated below.
The Use of Robotics and AI
The FinTech market is massive, and within the industry, there are endless processes all originally handled manually. However, we are now seeing an alliance formed between financial services and robotics/AI in order to reduce risks and mitigate risks. These sophisticated machines are capable of so much more than you might realise, including cognition, manipulating and interaction. With cognition and manipulation, AI is able to interpret data effectively and take on a greater diversity of tasks, allowing processes within the FinTech market to be carried out quickly and efficiently. With interaction, robotics can collaborate with humans seamlessly, meaning that they can be easily integrated within our financial markets.
There Are More Diverse Payment Options
Now that we live largely in a digital generation, international and online transactions are more popular than ever thanks to the convenience that they offer to customers. Currency exchange, PayPal and direct deposit are slowly becoming a thing of the past, as FinTech solutions are revolutionising the way that clients pay for their products and services. For example, apps such as ApplePay and Bitcoin Wallet can now be used to digitally pay for items. For those across the globe, this allows them to purchase items from foreign countries without being the victim to extortionate currency exchange rates.
Assets Are Protected From Fraud
FinTech may have found solutions to easily lend money to clients, but without sufficient protection, frauds would be able to easily get their hands on money due to the lack of third party participation. But, FinTech has now been working hard to protect all assets from fraudulent behaviour. In order to win this battle against crime, FinTech has been undergoing development into more advanced authentication systems for e-commerce customers, making it easier to detect any fraudulent behaviour involved with online payments or lent loans. Automated Clearing House (ACH) transactions in particular have proved challenging for FinTech, as fraudsters are still prevailing in this section of transactions.
Shopper Experiences Have Been Enhanced
Online shopping is hugely popular, with 51% of shoppers making their purchases online in 2016. The reason? Shopping online is hugely convenient for consumers, and allows them to make purchases much quicker than if they were to go in-store. However, consumers are heavily aware of the risks associated with online transactions, and so demand a safer way to purchase their favourite products on the web. Organisations within the FinTech market have provided a solution for this, as companies such as Stripe has helping simplify and secure online retail transactions, for both the retailer and consumer, reducing the risk of cyber-attacks.