The new technology evolving is showing the new invention and development in the finance sector. The decision-making in a multinational company is the shift toward the new technology. The major three technology use for decision making is artificial intelligence, big data, and blockchain. The traditional way to make the decision is far away as per the new technology is gaining importance in the industry. The company decision is based on the data have driven, fact-based decision-making system. It is the next step for the data-driven systems. Big data solutions are the same for data analysis. The daily data generation due to lots of financial activities. Big data is helping to make a change and formulate the data for analysis. The critical challenge face by the BFSI industry is unorganized data, fraud detection, and operational inefficiency. The term used after big data is artificial intelligence. Artificial intelligence helps to manage the data and to make the decision based on financial situations. The Blockchain help to the transaction with the bit coins. The Blockchain can be used in the capital market by converting traditional bonds, stocks, and other assets in the form of tokens. Blockchain can be used to remove the third party present in the credit and loan market. All of the three technology is helping to increase the confidence of the customer on the bank.
What is the role of big data in the BFSI sector?
The work of the banking sector is completely changing due to big data technology. The new changes occurring in the industry manage with big data. Data analytics is the matter to work with the data core operation, risk projection, and customer relationship management. Data-driven technology is used to share the data between the bank and user, database, countries, and third party. Big data is used to make a data-driven service more useful. The data can be used to map the demographics, individual choice for risk, and project management.
How does big data analytics work in the area of the BFSI sector?
The following terms are in the area of big data analytics for the BFSI sector.
1. Predictive Analysis:-
The previous record of transactions can use for future decisions and strategic planning. The daily analysis of the work highlights the use of risk management. It’s used for work management. Predictive analysis is used for future management and planning.
2. Fraud and Malicious attacks:-
The daily challenge of the BFSI sector is the cybercrime. Though there are adequate laws, the daily cases of cybercrime are increasing. With the help of big data analytics techniques, the banks can detect an unusual pattern. It uses to prevent the fraud attack. Big data help to create a unique biometric ID for the customer. It is helpful for online encryptions.
3. Data Processing speed:-
The traditional system of the database is not able to handle a large amount of data. Hence the big data is used to manage the multidimensional data. Data analytics use to manage the request virtually with cloud computing. It helpful for the bank to manage a large amount of terabits data easily.
A big data analytics tool is helpful for the customer to manage customer data effectively. It is helping many businesses to chart effective business strategies. It used to found the market relevant product.
How artificial intelligence use in Fintech?
Artificial intelligence is used to analyze, process, and learning of data. It is for the learning and process for advance decision making. The AI use for automated work and helps to create the perfect solutions for business. The artificial intelligence in the Fintech sector uses to satisfy the different digital needs. The customer demand for quick work and 24 hrs. Access to banking services can achieve with artificial intelligence. Many banks using artificial intelligence for customer advice and feedback. The deep learning concept uses to operate the Fintech. The banking and financial services tend towards artificial intelligence for the business advantage. The artificial intelligence uses to reduce the cost of the work. Financial services use chatbots and robots for customer care and services. The top fortune financial institute like Bank of America, JP Morgan chase uses the AI for the use of the customer service. Another used by the AI for the customer is 24 hours of mobile banking. Artificial Intelligence is used to enhance security and fraud detection techniques. The artificial intelligence application are used in voice interface work, robotics process automation, and big data analytics.
What is the use of Blockchain in the Fintech Sector?
The blockchain uses to transform the working style of the banking and non-financial sector. The Blockchain is transparent, highly secure, and cheap to operate in the bank system. The importance of the blockchain for Fintech is to improve security, customer satisfaction, money management & adopt the new technology. Blockchain can support the bank in different ways of operation. Blockchain uses to manage traditional bonds, stocks, and other assets. The third-party verification can remove with the blockchain technology. Blockchain used to remove the data reconciliation with the bank ledgers. The modern way of money transfer will base on the blockchain technology.
The Big data, artificial intelligence, and blockchain use to manage the financial institution with the data efficiency. The new technology is shifting the way of working and transactions with the technology.