AI & MACHINE LEARNING
Discussions on AI and machine learning has taken up a major space in technology circles for the last couple of years specifically. AI – or ‘cognitive learning’ as IBM calls it to underline that it should not go into the way of replacing human intelligence but should go into the way of empowering it – is used especially for those areas of finance industry.
- Making your fight with fraud more swift and more efficient
- Focusing on higher customer satisfaction with the help of AI based chatbots
- Removing human based factors from investment decisions in wealth management
APIs
It has been seen clearly that applications based on APIs are the true and the most effective way to fight with the economic and business challenges faced by the finance industry. Most Fintech startups with their applications try to break down the traditional rules of the finance industry. These kind of little organizations taking the advantage of APIs can move faster than bigger and more traditional ones with their agility. Traditional financial organizations keep investing in Fintech startups and trying to use their vast data more effectively so to be able to stay in the competition.
BLOCKCHAIN
Blockchain technology is giving a promise of security and transparency to a world of insecurity and fraudulence. Bigger players of the financial world are trying to construct a new infrastructure based on this new technology as an alternative to the old, unreliable ones by coming together. From trade finance platforms to cross-border payments and digital identification, erasing the inefficiencies of security and transparency is the major benefit of blockchain technology.
HUMAN DIGITAL INTERFACE
For most of us, it is not possible to spend a day without our personal technological devices. So it is not shocking to see the speed of adaptation of mobile technologies to our lives. For example, we can use our voices easily to give orders on our technological devices rather than writing. Traditional passwords are being replaced by biometric finger, retinal or face scans as security checks. These kinds of examples affect device interactions as well and push for a change in those areas.
QUANTUM COMPUTING
Unlike the traditional computers, with its qubit technology, quantum computing technology makes it possible to store much bigger knowledge with much less energy. It is used to maximize the return to an investment according to a given risk profile. When it is assessed alongside with the upcoming developments in artificial intelligence and machine learning technology, it is clear that it will have a huge place in the fight with fraud and money laundering in the future.
ROBO-ADVISORS
Robo-advisors (agentive technology) are completely automated or hybrid services that give investment advise to customers. This technology rely simply on wealth management algorithms to evaluate risks and manage money based on customer’s investment objectives. Private investors can now use algorithmic wealth management companies to invest their money more effectively with the help of millions of data points.
NATURAL LANGUAGE PROCESSING (NLP)
Natural Language Processing is an area of the general Artificial Intelligence sphere that understands languages both written and verbal. Fintech companies have started to use NLP services to reduce costs and to improve services through better and cheaper customer communication solutions.
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