Big financial players need to play catch up with a new player – advances in technology mostly launched by fintech startups. This phenomenon is quickly changing the global financial landscape.
The situation is serious – 85% of banks have made digital transformation their business priority and 75% of all global consumers are using some fintech service for money transfer.
Why is this happening?
Speaking from the marketing side, fintech is much better responding to customer needs when it comes to personalization, accessibility, and convenience. Sound compelling?
Problems happen when the possibility of cybercriminal kicks in when our money is already online. This is how to use the fintech revolution smartly.
The chatbot is great 24/7 assistance, but it is still a computer program
The main advantages of chatbot technology are speedy responses, pointing customers in the right direction and automating data collection. They can provide assistance 24/7 and help customers to find pieces of information in seconds which will significantly improve their customer’s rate. On the other hand, what if the database where that information is stored is easily hackable? Or, how would customers know that they are speaking with a legitimate bot assistant?
Blockchain and Crypto may be faster, but with a price
When it comes to the open innovation movement, businesses in finances are taking an approach in the area of Blockchain. Why? Because transactions are faster and cheaper.
However, cryptocurrencies have their own share of risks. According to cybercrime statistics, cybercriminals have stolen more than $4.26 billion from cryptocurrency exchanges, users and investors.
What will be the long-term impact of new technologies on the world of finances, we’re yet to see, but they are changing the payment ways, and they are doing it fast.
Multi-channel customer experience is a must, but be careful
Banks are operating almost entirely in digital ways and that is no surprise when we know that digital channels are dominating the way customers connect with businesses.
Mobile, social media, live chat, and SMS now have to meet all new consumers’ demands.
This means that customers can get consistent interaction online, no matter what device they use. This means that financial institutions are getting smarter, and aiming to migrate transactions and sales to digital channels and create a unified user experience.
But before this happens, be careful. Predictions are that 300 billion of passwords will be online in 2020. How will they be able to protect them all?
Use robots as a financial advisor only with multiple checks
Virtual assistants are being a significant threat to traditional operators. Automated technologies are offering more and more competitive solutions every day, so robo-advisors could become our reality in the near future.
Did you know that one of the most prominent fintech startups gives users the opportunity to create invoices in a simple way?
Should human financial advisors be worried? Not for now. A hybrid approach to humans and machines is still delivering the best results when it comes to the delivery of financial advice.
Automation helps to capture leads, rebuild relationships with customers, while humans are still irreplaceable when it comes to the advisory part.
When talking about online financial advisors, we have to mention the most prominent one – Betterment. “The smart money manager” , as they like to call themselves, is using technology to satisfy more than 450 000 customers and using all of the above in order to deliver unique customer experience.
The destiny of traditional banks: If you still prefer them
The banking industry will have to evolve and reimagine products and services in order to stay competitive. They will have to put the customer at the center of the process in order for him to have a better experience.
The digital revolution has started and traditional banks will have to watch closely and consider partnership opportunities, innovation and investments just to keep up with the innovations.
With all that being said, what does the future hold for the financial sector?