By Manav Jeet
Technology is developing rapidly and the world as we know is changing accordingly. New technologies are looking to increase convenience and ease of interaction for the general consumer in various sections like e-commerce, grocery, transportation, and banking.
For example, peer-to-peer lending, robo advisory, and UPI are just some of the elements in this new wave of evolution which is looking to aid the general consumer. The objective of it all remains seamless user experience, increased security, and greater convenience.
In 2018, a number of these technologies will come to the fore (some of them already have) and look to evolve how we transact our finances.
To throw some more light on these new fintech tools that can change the world of finance, I decided to take a look at some imminent solutions.
The Ease of Digital Banking
Banks in India have slowly but surely accepted the idea of providing services to consumers at the touch of a button. They realised that bringing the solutions directly to the consumer’s smartphone allows them a greater chance of interaction, rather than waiting for them to come to the bank.
At the consumer’s end, the transaction with mobile apps is easier and faster than standing in a line or filling up a document to make a transaction.
As a result, the new wave of digital banking has the capability to provide more power to the consumer while allowing banks to gauge their preferences and create custom-tailored services.
One of the real show-of-faiths in this regard is the release of digital bank account services by some banks, which allows a consumer to open an account without even visiting a bank.
As banking services evolve beyond just transactions, consumers can be sure to enjoy a wide variety of solutions.
The Emergence of Blockchain Storage
Blockchain systems like Bitcoin and Ethereum have become popular due to their ability to ensure security in transactions and retain verifiability of information stored.
There is no single repository, yet information can be easily stored and accessed. However, the blockchain algorithm works in a way, which creates a secure repository for various types of information.
Using this technology, confidential data like consumer KYC can be stored and made accessible to banks and financial institutions. Today, consumers need to reproduce their KYC information for every instance of a financial transaction, whether it’s a loan, credit card, or buying a new car.
However, with blockchain-powered storage, institutions can easily verify the information without the need for consumers to reproduce the KYC documents. At the same time, the information remains safe so that unauthorized third-parties cannot hack into it or change the KYC information.
Robo Advisory Will Provide Better Solutions
Financial advisors are supposed to offer real fiscal advice depending upon the consumer’s need and aid effective matchmaking. However, that might not always be successful. With the use of Artificial Intelligence and Machine Learning, robo-advisors can leverage big data to offer more efficient matchmaking between consumer needs and products.
Typically, robo advisory would use consumer insights and historical data to understand their choices, lifestyle, and needs to help with portfolio allocation, banking services, and such. A robo-advisor would be able to track investor mistakes, their reactions to market events, and accordingly offer advice.
Not only that, they can analyse savings and expenditure data to offer customized strategy so that consumers can meet their financial goals.
Fintech Tools Will Change How We Interact
As a result, the world around us is developing at a pace that can soon have us conduct all our banking on smartphones. You can open an account, make a deposit, transfer money, create new portfolios, store KYC documents, and even create a new fiscal strategy, without even talking to a human being.
It will provide increased convenience for the consumers while allowing businesses to offer better products and services.