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Technological tools have entered our lives with a disruptive speed and have been changing the world ever since. The solutions that are currently being developed are more oriented towards improving customer experience, making the services more convenient and seamless across various sectors, such as e-commerce, banking, transportation etc. Aside that, new innovative tools that constantly get introduced to the market are aimed at increased security and improved interaction process between the end-customer and the service provider. FinTech tools are particularly oriented at changing the way we manage our finances on a daily basis. Let’s take a closer look at them!
Allowing customers to use banking services directly through their smartphone, rather than promoting traditional banking, greatly improves customer experience, making transactions simpler and much faster. As the number of digital banking providers grows, so do the freedom for the consumer and the level of personalization of the services provided. Now it is possible for pretty much anyone who has a smartphone and internet access to open a personal or corporate account within minutes, while even a few years ago this was unimaginable. Moreover, as the FinTech industry continues to evolve, the range of services provided to the customers is also growing beyond mere transactions and becoming more complete.
We all remember well the hype that emerged around blockchain systems, particularly Bitcoin and Ethereum, some years ago. The most fascinating part about them was related to making transactions highly secure and increasing the verifiability and accessibility of information stored inside the systems, despite the absence of a single repository. As some time went by, more and more people became aware that blockchain algorithm can create a secure repository for different kinds of data. For instance, sensitive customer information, such as KYC data, can be stored and easily accessed by banks and other authorized financial institutions. This way, the need for customers to reproduce their KYC documents for each financial transaction will be eliminated, as information will be easy to verify with blockchain-powered storage. In the meantime, personal data remains safely stored, leaving no chances for hacks by unauthorized third parties.
The task of a financial advisor is to provide effective advice in order to create a match between the consumer’s needs and goals and the perfect financial product. Yet, due to various reasons and factors, such as human bias, this process is not always successful. Robo-advisors, though, through the application of Artificial Intelligence and Machine Learning are able to leverage big data and create the right match between consumers and products they are looking for.
In order to get a better grasp of the consumer decision-making process, lifestyle and needs, robo-advisors use a combination of consumer insights and historical data. These complex algorithms are able to track investor mistakes and analyze market sentiment, detecting reactions to market events. This way they are able to produce an optimal portfolio allocation, suggest the right banking services etc. Robo-advisors are also efficient in creating customized strategies for consumers to meet their financial goals.
The world is moving at a fast pace and innovation is only accelerating it. We no longer depend as heavily on human interaction for opening accounts, authorizing transactions, making deposits, creating investment portfolios and strategies. As we move along, the range of solutions provided will continue to grow and customer experience will continue to improve, increasing convenience and helping businesses to offer better products and services to their clients.