2018 is the year of new technologies and innovations, in this year we are seeing many key technologies like Artificial Intelligence; design thinking and the cloud replacing the older one.
Here are five 2018 financial technology trends set to modify and innovate the industry.
1. Digital Transformation
The changes and improvements in the communications and retail industries have developed customers’ expectations from the banks as well. Everything is getting digital day by day, in fact, customers are becoming more tech-savvy so to keep up with them even banks have to change their infrastructure and styles. All this is leading to competitive tensions and customers’ soaring expectations making financial institutions to invest aggressively in digital transformation projects.
2. Artificial Intelligence
Artificial Intelligence advancement will concentrate on an intellectual way to use it in the sales, marketing, investments and wealth management of the financial services industry. This is a significant step for Banks to shift from advanced robotic technologies like machine learning and predictive analytics to exceeding growth in cognitive computing.
3. Design Thinking
Augmented Reality (AR) and Virtual Reality (VR) will help in developments in immersive UX design intended at enhancing the customer experience. Which will lead banking providers to concentrate on a few essential uses of technologies where customer-first design is important, like account opening and Augmented reality. The record onboarding process will see an increase from UX design technologies in the form of a more interactive experience with natural language processing and machine learning.
4. Big Data
Data is preferred more in 2018 in order to move ahead with future operations. Also, the big data actions are promoting more advanced and more open business models with better data tools and visualizations. While the beginning applications for data uniformity have already started, financial institutions are still dependent on the previous data architecture and infrastructure. Additionally, this needs new data infrastructure to follow the future new data requirements like General Data Protection Regulation (GDPR) and Payment Services Directive II (PSD2).
5. The Cloud
At this moment choosing the cloud in banking will boost up, but with the focus on security and administrative compliance continue to be front and centre. Banks will definitely feel the pressure to create more cloud-enabled business models, therefore the use of open APIs will drive customer applications to the cloud yet more.
The above trends will facilitate financial services companies to deliver faster, cheaper, and more powerful technology products and services that satisfy the requirements of controls while also better assisting the needs of their customers.