Top Technology Trends Transforming the US Financial Services Industry
Financial Services Industry Outlook Rapid advancements in technologies have drastically changed the outlook of many industries and the US financial services industry is no exception. Latest US financial industry analysis shows that the fintech market is prospering each passing year, with companies in the banking and financial services industry competing for an industry-first advantage. However, traditional banks [...]
Financial Services Industry Outlook
Rapid advancements in technologies have drastically changed the outlook of many industries and the US financial services industry is no exception. Latest US financial industry analysis shows that the fintech market is prospering each passing year, with companies in the banking and financial services industry competing for an industry-first advantage. However, traditional banks and financial services companies encounter serious threats from fintech companies that offer innovative and customer-focused solutions to today’s technology-empowered customers. To stay ahead of the game, it’s high time for companies in the financial services industry to focus on scenario planning as the coming years are expected to be volatile. Also, companies in the financial services industry will need to reinvent their business strategies and embrace digital capabilities to efficiently compete with their rivals. In this article, our financial service experts have unveiled four major technology trends changing the business landscape for companies in the US financial services industry.
FinTech Trends That Will Disrupt Financial Services in the Next 5 Years
Chatbots/AI-based customer engagement platforms
Today, companies in the banking and financial services industry are finally noticing the difference made by chatbots in banking processes compared to regular customer service. Moreover, chatbots can be synchronized across a myriad of touchpoints at any hour of the day, as they are equipped with machine learning and real-time decision-making capabilities. Apart from these benefits, AI-powered chatbots go beyond customer support and help businesses realize huge profits.
Although AI-based customer engagement models provide huge opportunities for companies in the banking and financial sector, integrating new technologies creates security and financial risks for businesses. Hence, taking a proactive approach can help financial services providers to convert these risks and challenges into valuable opportunities.
RegTech is a new technology that is gaining much attention in the US financial services industry. RegTech helps providers to improve process efficiency and lowers risks by speeding loan origination to sharpening surveillance against fraud, money laundering, and insider trading. Although RegTech solutions are already being applied by some financial services providers, the current innovations in technology and FinTech trends indicate that we are only at the early stages of the RegTech market, with more development of new solutions expected in the near future.
Therefore, the use of RegTech solutions is becoming vital for any financial services provider in order to strengthen the value chain and scale their operations across multiple markets. Also, the US financial services industry analysis shows that 47% of companies have already incorporated RegTech in their business processes. Hence, it is imperative for other companies in the financial services industry to keep pace with the market innovations and adapt with the latest market innovations to avoid being left behind.
Today, for tech-savvy audiences, digital mortgage services may seem like one more addition to their app list. However, for companies in the financial services industry, digital mortgages pose significant challenges, especially for new market entrants. These platforms are constantly competing to offer the best deals, tailored loan options, and speedy processing. Moreover, digital transformation has made it easier for loan providers to conduct asset verifications, check compliance, and evaluate risks to ensure quicker loan closures.