Technology has changed our industries and how they used to serve us. Over the few years, IoT and tech improved a business’s ability to provide for its client’s need. Today, we are on the verge of entering a new era, 2020’s and its time we discuss the changes it will bring to the professional industries.
A New Business Model
Sometimes, newbies find it hard to enter the financial service industry.
There are a few disruptions today that are trying to break this norm. These disruptors are fast-paced companies; some might be start-ups that are focused on in on a specific technology including mobile payments, etc.
These attack some profitable financial services value chain. Some are damaging to incumbents who subsidized important but less profitable service. Another development, most businesses believe that a quarter or more of their business is at risk of getting lost to established standalone companies shortly.
Sharing Economy and Financial System
In the 2020s, banking services will change their way to cater to a different audience. This will cater to the concept of sharing economy. It has already started with cars, hotel rooms, and taxis, but financial services will soon fall under this web.
Sharing Economy is defined as decentralized asset ownership and the use of information technology to find efficient matches among the users and providers of capital. It won’t turn the bank as an intermediary.
Blockchain will Change Things
Different industry groups have joined forces to commercialize blockchain technical and introduce it to the mainstream finance industry. Doing so will make blockchain a public ledger and the technology will become an important part of the financial institution’s technology and infrastructure.
Most companies had their e-business unit to deal with rising e-commerce 20 years ago. The “e” got lost, and online commerce became a norm. With internet development and a big investment, doing business online has become very efficient.
The digital market changed the definition of operation efficiency and good customer experience. But when it comes to financial services, this approach is introduced via payments, insurance, retail banking, and finance management. Digitalization also made its way towards the capital market and commercial banking.
Customer Intelligence for Revenue Growth and Profitability
Customer Intelligence used to be based on heuristics; these were derived from different survey and focus groups. These are proxies with individualized data for customer behavior and results. The advancement in tech allotted business more data what their users and how to cater them. This is an excellent opportunity for business to learn about their consumers and how to provide them with something better.
Regulators will Implement Big Data as Well
Technology’s use isn’t only restricted to the financial institution. Regulators are changing their ways for better data gathering. It will help them understand their audience better. They want to learn about individual institution activities and systemic history. The way to monitor their prospects and predict whether they will be profitable or not.
This technology will be helpful when evaluating a subject for Lainaa. It will let the bank or lending institute to know whether they should lend money to someone or not. This technology will be a game changer in financial lending.
In case you didn’t know, lainaa means loan in finish. Zmarta is among the top financial institutions in Finland. It offers friendly conditions and the interest rate on both long- and short-term loans and assets you in whatever capacity you need.
Cyber Security will Enjoy Several Improvements
Financial services are a bit disrupted by cyber-attacks and threats. It had a severe impact on the financial industry. Most CEO reported they are concerned about cybersecurity and they understand they won’t be some reforms soon. In 2020[s, we expect to see the following changes to improve online security:
- Introduction of Third-Party Vendors
- Improve and Simplify Complex Technologies and PROCESS
- Cross Border Data Exchange
- Improved use of Mobile technology thanks to the improvement of IoT
We expect the public cloud to become a central figure in the business infrastructure of various industries. Most financial services use cloud-based software as (Saas). These help business process inquiries better.
In the future, we expect it to help with the following business operations:
- Consumer Payments
- Statements and Billing
- Credit Scoring
Disclaimer: This content does not necessarily represent the views of IWB.