Significance of Digital Transformation in the Finance Industry

Digital Transformation has countless advantages in the Finance industry, such as providing a better customer experience, increased operational efficiency and revenue generation.

FREMONT, CA: In today's world, digital transformation is a buzzword. In this competitive world, the digital economy's support is crucial. Various business operations will be digitized, production capabilities will be improved, resource management and employee efficiency will also be improved, and employees will be empowered to focus on productive tasks. In addition to improving the customer experience, it also introduces an additional layer of transparency by getting deeper behavioral insights.

The role of Digital Transformation in the Finance Sector:

Implementing FinTech to transform operations: Financial technology, or FinTech, refers to all modern technology used by banks and financial businesses to improve the delivery of financial services. It includes everything from ATMs and electronic cards to digital banks and blockchain technology. Using automation and machine learning techniques, FinTech has transformed the finance sector. Among the FinTech money-makers of the future are automated chatbots that are available 24 hours a day, online budgeting tools that regulate money spending, and spending trackers to monitor spending.

In fintech, operational issues like budgeting and customer service are addressed. Robocalls can now be used to verify unusual financial transactions that previously required a call from a bank representative. The financial industry is moving forward and openly embracing FinTech as an exciting investment.

FinTech is expected to grow by around 25 to 30 percent between 2019 and 2025, according to reliable projections.

Using Artificial intelligence(AI) to improve cyber security: Fraud can be detected and forecasted using Artificial intelligence (AI). Financial institutions and credit card companies use these services to perform background checks. As a result of this technology, banks are also able to comply with compliance regulations in a more efficient manner.

It is undeniable that AI reduces cybercrime by protecting mobile banking, login credentials, and so on. Cybercrime losses amounted to $600 billion in 2016 using sophisticated AI. Additionally, AI improves customer experience by providing valuable insights into customers' behavior in addition to detecting financial fraud and preventing cybercrime.

Blockchain transforms financial institutions: Many other sectors can benefit from Blockchain technologies, which are often associated with cryptocurrencies. Blockchain holds immense potential and, if adopted widely, would transform the world. Using its ledger system, it enables smart contracts and uses strict controls to audit data. It also builds user trust by increasing transparency and reducing human error and risk. This is why stock exchanges, AI firms, and other financial institutions are actively pursuing this technology.

Blockchain-centric businesses raised over $240 million in venture capital in the first half of 2017. Additionally, this investment keeps grown every year since 2017. Several financial services will be impacted by blockchain and its allied technologies in the future.