Technology In Finance

The advent of new technologies has ensured that the world we live in is changing at an exponential pace. Latest technologies like artificial intelligence (AI), Big Data, machine learning etc. are giving a new edge to industries and changing the way business is being done. They have enhanced the product value proposition by making it more customised to reflect the customers’ personal likes and dislikes and also ensured seamless delivery of services to customers. Considering the ubiquity of technology, it has undoubtedly invaded the financial services space as well. Fintech is nothing but the confluence of finance and technology.

As said earlier, technologies like artificial intelligence, machine learning, blockchain, and internet of things (IoT) have a wide range of applications in the field of finance and banking. As an increasing number of people spend their time in the digital realm, they leave a large digital footprint ie. data. The ability to harness this data, understand customers better and then use technology to create optimal solutions is highly potent.

In Every Sphere

In the field of wealth management Robo- Advisors and structured products are breaking new ground in terms of understanding the customers’ requirements, creating customised solutions and then delivering them in a seamless manner. Artificial intelligence is helping design more nuanced risk models that can better understand the risk profile of the investors.AI and machine learning area also being used extensively to parse through historical data to identify trends. Natural language processing in equity investing looks at keywords in news articles to factor and understand the market sentiment. Lending companies are collaborating with e-commerce platforms to understand the users’ purchasing patterns and payment behaviour in order to assess their credit risk in a more holistic manner. Digital payments is making it simple and easy for individuals to make peer to peer transactions in a safe and secure environment. Nearly every facet of finance is changing because of technology and its far reaching ramifications. From a consumer point of view, the biggest impact that technology has made is to give the investor the benefit of an informed choice and ease in transacting.

Move Forward, but with Caution

Even though the adoption of technology in finance is happening at a fairly fast pace, we have only just begun to scratch the surface. Along with its benefits, we must also understand and mitigate the potential risks of engaging with technology in the financial services space.