Cloud Banking
Cloud banking provides financial service institutions with an unparalleled level of agility, security, scalability, risk mitigation, and cost benefits. Data analytics, batch processing and data storage can be accessed via the cloud as and when required enabling institutions to manage their resources more efficiently. Commonwealth Bank of Australia moved to Infrastructure as a Service (IaaS) and saved 35% of its operational costs, as well as becoming far more agile. Another success story is Royal Bank of Canada partnering with IBM Cloud to accelerate business agility, reduce time-to-market and facilitate getting onboard with the evolving technology. Banking as a Service (BaaS) is also trending with its huge benefits in innovation by providing banks with their own infrastructure for Fintechs and startups.
Read More: How Cloud Computing is Reinventing Supply Chain Management
Blockchain
Blockchain technology has gained tremendous growth in the financial industry, by 2023, the FinTech Blockchain market is projected to grow from $ 370.3 million to $ 6,228.2 million, with a CAGR of 75.9%. This technology allows FinTech enterprises multiple authentication processes, allows financial transactions at godspeed with security and data transparency. In addition, Blockchain does not require third-party authorization, it is decentralized. According to Benzinga – Quorum, JP Morgan’s platform is dedicated to Blockchain R&D. It handles a range of transactions and services including share trading and smart contracting. Bank of America, is in the works for creating a single Blockchain-centered network to keep banking records and authenticating business and personal data. Fast, reliable, and credible transactions can be made using smart contracts based on Blockchain without any need for a third party.
Collaboration
The report by UBS bank management predicted that FinTechs could contribute to a 3.8% bank revenue increase in the next three years. New, innovative financial services are transforming traditional institutions, the biggest trend is seeing FinTech companies and startups collaborating with financial services providers such as commercial banks, insurance companies, investment trusts, mutual funds, house financing, leasing companies to reach agility. For smooth and easy possibilities for customers to send, receive and request money via mobile, Bank of America collaborated with Zelle to give their digital payment capabilities a boost. According to Flybits Bank of America customers set $27 billion through Zelle over 102 million transactions in 2019. It is safe to say ‘Collaboration’ is the buzzword for FinTech in 2022.
Read More: Learn how we helped our client reach new users through application re-engineering
Rise of AI
Artificial Intelligence and Machine learning algorithms enable effectiveness and efficiency for a range of banking transactions. According to Autonomous Research LLP, AI will help reduce bank operating expenses by a staggering 22 % by the year 2030. AI and ML aid real-time quick decision making enriching customer-centric services, detecting cyber threats and financial fraud, risk monitoring, and investment predictions. The global AI in the Fintech market is projected to reach USD 17440 Million by 2027, from USD 5350.8 Million in 2020, at a CAGR of 17.9% during the forecast period 2021-2027. One of the largest banks in the US, JP Morgan Chase is using these cutting-edge technologies to automate all kinds of repetitive tasks such as data insights, documentation, compilation with regulations, and cash management processes.
New payment solutions
New payment solutions are the rage in the FinTech industry, these new payment methods have helped in the easy transfer of funds from peer-to-peer, lending services, online payments, and mobile payments. Contactless payments have seen a surge in demand with the given Covid-19 pandemic. Alternative payment solutions are also being adapted as a result of consumers’ shopping behavior. A big percentage of people are using payment methods like PayPal for bank transfers and mobile wallets – apple and google pay. Klarna, a payment provider operating on a buy now, pay later concept, was crowned one of Europe’s biggest privately-owned financial technology providers – with nine million consumers in Britain have used the service, and 90 million users worldwide.
These robust technologies and many others will continue to enhance financial services to stay at pace with the evolving world.
Strategic Systems International has been partnering with fast growth fintech firms to bring data-driven products and solutions to the market for the last three decades. Please review our success stories here. Contact us for any queries at sales@ssidecisions.com.
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