Covering Disruptive Technology Powering Business in The Digital Age

Most people have probably made an online transaction at some point, whether buying clothes, gadgets or even food. And with many countries on lockdown, these digital activities won’t likely die out soon. In fact, the trend of sending and receiving money digitally, as well as e-spending, is on the rise. Advancements in financial technology, or Fintech, are also making transactions easier and more convenient and secure.

In the past, the banking and financial service industries were only relying on physical mediums for their transactions, using bills, cheques and credit cards. However, the successes of digital transformation have proved that banks should also be more agile and flexible in their operations, leveraging emerging technologies and increasingly fast connections to reach more clients and customers.

Banking and financial institutions are now utilising various technologies for their operations, from payments, to loans, credit scorings and even fraud prevention. Technology has, and will continue to, significantly changed how banks and financial service institutes work. DTA has compiled these particular advancements that we feel will bring the biggest impact in the industry.

1. Blockchain – This technology greatly influenced not just the cryptocurrency industries but will also have a significant effect on the banking operations as a whole. With blockchain, transactions and records are guaranteed to be trustworthy, secure and tamper-proof because of its verification system. Blockchain introduces a decentralised and distributed network for transactions. It enables financial institutions to implement smart contracts and they can track transactions with heightened security. Because of these properties, blockchain is being applied in many industries and across a diverse range of use cases, such as medical records, property records and even government elections.
2. Artificial Intelligence – Probably the most promising technology at present, AI, along with its subsets, can help companies in analysing their data and introduce automation and scalability for the industry. AI has many uses, from detecting fraud in real-time on millions of transactions, analysing the credit scores of customers so companies can know their loan limits and predicting trends for currency exchange. AI enables automation of processes, allowing financial institutions to host instant payments, automated accounting and scalable systems.
3. Big Data – Data has become one of the most valuable assets for modern organisations, including those in the banking industry. Big data and analytics can provide insights for businesses and help in decision-making. Huge amounts of data are now generated every single second and with the right process of integration and analysis, the finance industry can obtain valuable actionable insights. With big data in play, financial institutions are able to predict the trends on the market, such as stocks and foreign exchange, and provide highly personalised services to customers.
4. Regulatory Technology – Also known as RegTech, this technology is a synthesis of many technologies that help financial services to follow regulations. With a huge number of customers entrusting their money to the financial industry, it is expected that financial organisations are subjected to strict regulatory and compliance requirements. With RegTech, both financial institutions and regulatory organisations are cooperating to manage regulatory processes, monitoring and compliance. RegTech uses the information to enhance and implement regulatory processes within the finance industry. It features the management of records, reports, tax and other assets of a bank institution.
5. 5G – This advancement in communications is now emerging in 2020 and with many users utilising mobile banking and online transactions, 5G can greatly speed up the operations of the banking and finance service industries. 5G will also see more connected devices and systems, from the financial institutions to customers for better transactions. With the implementation of 5G globally around the world, transactions will be instantaneous and more customers can be accommodated.

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