In 2018, the top 1000 banks recorded the best total assets in the last 10 years at $124 trillion, according to a report by Deloitte. This figure was attributed to the restructuring of the banking system, incorporation of technology into customer service, and the widespread use of frictionless digital payment systems. Blockchain technology continues to lead the revolution in the industry, with financial institutions and consumers alike clamoring to understand it and make a profit. Of the technological advancements, three changes have been particularly noticeable.
Investment And Robo-Advisors
Interacting with Artificial intelligence and robotics is not a foreign concept to consumers who already use Siri, Cortana or Bixby. Following this lead, a financial robo-advisor that evaluates and presents you with low-risk investment options has made it into the finance and banking industry. Diversifying your portfolio has always been a tiresome task that was mostly left to the suits on Wall Street, but with robo-advisors such as Stashaway, anyone is able to make complex money decisions based on computer arithmetics analyzed by the low-risk analyzers.
Data Protection, Privacy, And Consent
Banks have always had a wealth of information regarding their consumers, including their addresses, bank balances and credit histories. Previously, banks could share this information with third parties for survey or research without a consumer’s knowledge. However, technology has introduced and made sure data consent measures such as the General Data Protection Regulation have been enforced. Following this move, consumers are now able to access how their data is processed by banks. In the future, you will be able to withdraw consent to the sharing of your banking information without discrimination.
Digital money lending applications have taken the loaning sector by storm, especially in developing countries. The benefits of digital lending are that they are easy to use, time-saving and do not require much documentation. This has seen consumers rely heavily on the applications, to the chagrin of banks. An increase in the speed banks advance loans to their consumers is imminent if they are to compete fairly in the market. Some of them might also liaise with FinTech innovations to develop their own apps.
Technology is not done shaping the money and banking industry, and as it continues to evolve, consumers will have more control over their investments and banking data privacy, and be able to secure loans more quickly. Blockchain technology was just one of the pioneer changes in the industry, and increasing collaboration between banks and FinTech companies is bound to be on the rise.