Financial technology is quickly changing the way companies do business. The X Ways in Which Financial Technology can Transform Banking is being discussed at a recent Citi Strategic Planning Meeting, brought to you by Bill Gross, Citi’s director of global economics and investments. In this video, Bill Gross gives us an in-depth explanation of what he means by XTs, and how they are likely to impact banking.
Solutions like advanced analytics can offer support in predicting trading patterns, understanding investor behavior, and sentiment, and providing more accurate data visualization. Similarly, fintech brings game-changing technology to the table, like Blockchain and Artificial Intelligence (AI).
Banks have long been regarded as a part of the “business sector” that provides vital services to communities and society. In order for a bank to remain relevant and useful, it must be able to provide and lend loans, invest in assets, and interact with customers in a highly interactive and customer-centric way. Today, banks use digital channels to communicate with customers, via emails, text messages, and even physical mail. However, traditional methods like making phone calls or visiting a branch have become extremely time-consuming. Thanks to the introduction of financial technology, these traditional processes have been replaced by Internet technology that has dramatically changed the way banking is done.
Ways In Which Financial technology helps banks :
Financial technology helps banks provide a highly competitive shopping environment to their customers. It does so by digitizing the process of bank-to-bank transactions. Through online banking, customers can perform all kinds of tasks that were previously performed only by people in the physical world, such as applying for loans and borrowing from banks. This is a great way for customers to save money.
ATMs
One example of new technology is ATMs, or automated teller machines. These machines are linked directly to banks, so that every time a customer visits one of their branches, a transaction occurs. Customers can simply use their debit card to pay for their purchases. They do not have to leave their offices. If they choose, they can withdraw cash from ATMs at any branch, making life much easier for them.
Forex trading software
Another example of new financial technology is forex trading software. It was developed by experts in the field, and it allows banks to trade currency on the Forex market. This means that banks can now make more money by exchanging foreign currencies for their local currency. While it does not yet have all the features available on the Internet, it is a clear advancement over manual trading. Because this is done electronically, it is fast becoming the most popular way to trade.
Banking technology into the mobile devices
Banking technology has also made its way into the mobile devices that people use. This means that people can keep track of their financial activity from anywhere they are. No longer do they need to carry paper files with them, but can access the information that they need from any wireless device. They can even take their devices with them to work. So that they can check accounts and perform other banking services.
ATM machines, though a relatively new addition, are another example of new technology. These machines allow people to withdraw cash from their bank accounts. Once again, this saves time and labor. While it may be somewhat inconvenient for some people, it has proven to be a very useful service for many. Many banks have installed these machines around the country, and they are proving to be very popular.
Of course, technology never stands still, and when something new is developed, someone always writes about it. In the world of banking, new developments are an important part of the financial industry. As the demands for banking technology change, new equipment is developed to meet these needs. When you have something that provides a service that is beneficial to the entire financial community, you have found the perfect technological development. When you are looking for ways in which financial technology can transform banking, there are many options for you.
Way Forward
As the next generation is going to be more dependent on technology and tech-based solutions, banks have to keep up. In fact, big names are already moving towards change, integrating new-age technologies into their processes behind the scenes.
As investment banking embraces fintech, there will be an increased influence of artificial intelligence in the sector as well. In order to prevent cheating and fraud, there are several technologies which are using AI. For example, digital banking, cryptocurrency, enterprise tools, software, and the insurance industry.
Moreover, with more people using online financial accounts, there is improved access to paychecks. For instance, startups worldwide are transferring salaries to employees who do not have bank accounts through fintech apps and individual payment options.
Investment banks will have to improve agility and reduce costs. The future of investment banking is likely to witness in-class trading platforms that are supported by highly automated, and potentially largely externalized, blockchain-enabled, back offices. Alongside, the front office will be supported by AI and analytics to best serve clients.
