Technology Innovation: Lifeblood of Financial Sector

The pandemic has increased the dependency on technology and brought forward many innovations that would have taken a lot of time to be accepted. Innovation in the financial sector is quickly gathering pace to meet the rapidly changing customer expectations.

Fremont, CA: The business environment is undergoing a disruption on a massive scale. The outbreak of the COVID-19 pandemic has transformed life as we know it. The pandemic has increased the dependency on technology and brought forward many innovations that would have taken a lot of time to be accepted. Innovation in the financial sector is quickly gathering pace to meet the rapidly changing customer expectations. Internal operations across most businesses need to be revamped to meet the new regulations. Undeniably, technological development has hit an all-new peak and has become a driving factor in the financial sector. Here are some of the emerging technology-driven trends that will significantly impact the innovation of the financial landscape.

Digital Banking

Banks have been developing their digital platforms for quite some time now. However, the efforts were mostly lacking luster and did not provide efficient services to the customer. The new norms like social distancing and remote work have forced banks to fasten the digital platform's development to make the customer experience more seamless. The pandemic has also triggered the launch of several digital-only iterations with no physical branches. Tencent owned WeBank is a prime example of this scenario, which offers entirely digitalized banking services and has replaced property guarantees with facial recognition technology and data analytics-driven credit ratings.

Process Automation

The scope for automation has increased multifold with the kick start of digital banking services. Traditional banks that were once skeptic about automation technologies have now been forced to adapt it to meet the increasing demands of digital banking services. Automation tools have access to multiple company registers in real-time to generate compliance with friendly KYC data. It ensures good compliance, speeds up the onboarding process, enhances customer experience, and increases productivity by freeing up resources. The need for automation goes hand in hand with digitization. Customers expect faster and real-time services while leveraging digital banking services. This cannot be achieved by relying solely on the physical workforce. Automation is the key here.

Blockchain

What was initially used to manage bitcoin transactions has now become an integral part of the banking system. In the banking sector, blockchain offers a distributed ledger system that can be updated by multiple users in real-time, with every transaction being recorded and clubbed into a block. The technology allows for a decentralized, reliable, and transparent approach to record-keeping, all of which are central considerations in financial