5 technologies that will transform the financial markets in 2021
Financial markets are seeking the adoption of technology on a fast track and growth-oriented approach that accelerates seamless consumer experience. With the increase in demand for an exclusive and personalized consumer experience, financial markets are adopting technologies at a rapid rate than ever before. The year 2020 has forced us to cope with the growing rate of technology that will play a colossal role in financial markets. Following the perspective that 2020 has left us with, let us outline the technologies that have great potential to transform financial markets in 2021.
Artificial Intelligence:
We cannot ignore or skip AI when we talk about disrupting technologies that impact financial markets. Artificial intelligence enhances customer’s personal experience, that aids in identifying and reducing their risk of fraud through data analysis thus playing a vital role in getting cybercrime under control. The use of AI and machine learning will result in real-time financial recommendations originated from prediction algorithms that will add a level of test and learn capabilities that go far beyond what was imagined just a few years ago. If used incorrectly, artificial intelligence can cause unprecedented losses, but if is rightfully used, it will amplify the benefits, especially in the financial markets. Since the speed at which it is making progressive steps towards making the overall experience easier for the customers, Without a speck of doubt, AI can be called the future of the finance industry.
Big Data:
Big data analytics is helping organizations process, store, and derive insights from the data that result in the invention of accurate solutions on a scale that was never seen before. The term, Big Data, is not just confined to the realm of technology but is now considered a business necessity. It is rapidly used by financial firms to transform their processes, their organizations, and the entire industry. Financial firms are trying to understand customer preferences and their needs to anticipate future behaviors, generate sales leads, take advantage of emerging technologies, and improve customer satisfaction. Big data also helps financial firms analyze how stock markets across the world are functioning and how investors are making their investment decisions. Thus, big data helps companies that are focused on customer analytics, provide better service to customers.
Biometric systems:
Biometric technology is preferably discussed more in the mobile application development niche. Due to the rise in mobile payment innovations global customers are no more entirely reliant on cash payments. Currently, the biometrics market is experiencing many changes under the circumstances’ pressure. With biometric-based authentication becoming the front line of digital security in the banking sector, we need innovators to provide encryption-based solutions to these systems that will remain unbreachable. Tech giants like Google, Amazon, etc. already have their own payment platforms and they roll out new features like biometric access control, fingerprint, and face recognition, etc. regularly. Thus, biometrics is very likely to become the preferred route of access over the next decade.
Blockchain Technology:
Blockchain technology is globally appreciated for its ability to enhance transparency in financial transactions that were once unimaginable. A blend of blockchain and AI is lauded for its ability to provide faster and cheaper solutions to traditional problems. It has helped build trust in peer-to-peer transactions. AI-trained algorithms can verify blockchain transactions, instead of conventionally relying on miners who are prone to mistakes. Blockchain will continue to disrupt financial institutions, beyond just ensuring data security. Blockchain technology will play a key role in transforming the banking sector in 2021.
Automation and Bots:
It is no more a surprise that customer support teams in various organizations are being replaced by Bots and Automation technologies. Automation provides the benefits of cost reduction, better accuracy, enhanced customer experiences, and seamless flexibility. Automation can allow financial firms to manage mundane yet necessary tasks efficiently, freeing up the human resources for other important tasks. Financial markets have customers that have come to rely on the 24/7 service Bots provide, as the probability of an instant resolution for their quick complaint is significantly higher compared to other conventional methods.
Automation should not be perceived as a risk to jobs, it should be perceived as an exciting opportunity that drives innovation.
In conclusion, we can say that a tech-first approach is the only approach in the current scenario of changing trends. Financial organizations should leverage Automation, Blockchain, Chatbots, and Biometrics coupled with Artificial intelligence to combat cyber risks. This approach also helps them sustain in a drastically changing market. Not only financial firms but all businesses should emphasize digitizing their customer journeys.
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