- Banking Services
- Digital Transformation
- Digital transformation driven change in banking
2.1 FinTech affects bank
- Key Fintech Trends
1. Banking Services
Banking service is called as an end-to-end process which helps for overall financial servicing process. Simply, the banking industry saves more and reduces its lending. Recently digital banking service is available on-demand which is operated within a set time-frame. Modern banking in India started from18th century.
1.1 DIGITAL TRANSFORMATION
Digital transformation is the process of using digital technologies to meet changing business and market requirements by way of creating new or modify existing business processes, culture, and customer experiences. This outstanding of business in the digital age is digital transformation. The integration of digital technology into all parts of business leads to fundamental changes in business operations and delivers value to its customers. Thus, artificial intelligence is the power of digital transformation in organization along with digitalization and Big Data in Banking Digital Transformation. Therefore, those data allows you to understand customers in different way, to identify opportunities, optimize products and services, and automate solutions using those information.
1.2 Digital transformation driven change in banking
In the Era of digital world together with entering adulthood originate the smartphone, instant access to information and a smooth digital experience. While not one person enjoy filling paper forms, tiresome queuing or tramping to a distant bank branch is replaced by digital banking.
- Similarly, Generation Z are now entering adulthood, a failure to meet these new digital demands comes at the danger of legacy organisations.
Focusing on the experience of everyday tasks, checking your bank balance or counting up the bills for the month, make simpler the way of banking functions.
FinTech is said to be financial technology and are mostly start-up technology and financial expertise firms, providing domain-specific products and services that are already provided by various traditional financial institutions. FinTech inaugurated in the 1990s when the Internet and e-commerce business models arose and in upcoming period banking in most parts was already completely digitalized. Financial technology has been worn to automate investments, insurance, trading, banking services and risk management. The interconnection happens with other processes and softwares are involved in this.
- FinTech affects bank
Fintech was procured in the form of back office functions in order to help banks manage customer databases, do other transactions and to manage accounts.
Payment revenue through mobile was Dollar 450 billion in 2015. Payment apps are now joined together with bank accounts which help to make mobile payments, online payments, investments and transfers.
2.2 Key Fintech Trends
- With omni channel banking enabling customers to use social, online, mobile channels which reduce customers visit to neighborhood branch.
- Automation with Machine Learning and Artificial Intelligence makes banks like UBS Group AG and Goldman Sachs have already put an AI/ML based solution in place. Thus they did tiresome back office work with other skilled machineries and also procured this intelligence process to calibrate services related to Finance.
- Faster authentication done with biometrics which reduce the frustration that comes with multiple passwords besides providing advanced validation techniques.
- Block chain make available transparency, minimizes risk, human errors and transactional fees. The distributed ledger system of block chain leverages stringent controls enabling smart contracts and auditable data. Thus, block chain said to be the perfect trading platform for securities exchanges.
Thus hereby, I conclude that FinTech is not only modifying business models and infrastructure of high-street banks, but it also generates extensive shifts in their human resources. New FinTech departments created in banks raise the demand for authorities with skills and expertise in both finance and development.