5 Tech Trends That Will Define the Finance Industry in 2019
The world of technology is an ever-changing one that brings new concepts to life each year. In 2019, there are several existing technologies which are expected to make their way into the notoriously traditional world of finance. Explore the top 5 tech trends that will define this industry in the new year:
1. Internet of Things (IoT)
The Internet of Things (IoT) is a term that gets thrown around a lot in the tech industry but it is actually proving to be useful in the finances as well. While it seems odd that a realm which centers on intangible concepts would utilize a network of tangible, connected things, financial institutions have found success in using IoT in fraud prevention, debt collection, creating personalized offers and optimized capacity management. In the new year, expect to witness this technology in full swing at ATM’s and point-of-sale devices.
2. AI/Machine Learning
Artificial Intelligence or Machine Learning can provide an immense level of value in the financial realm when implemented properly. This year, financial institutes will gravitate towards using AI/Machine Learning to reduce repetitive tasks and improve their overall level of productivity. For instance, automated paperwork, employee training, financial monitoring/fraud detection and enhanced security. While many financial organizations have already begun the process of utilizing such technologies, they will become more prevalent with improved accuracy.
In 2019, the focus on blockchain technology will continue to grow and increase in popularity. As the technology behind innovative cryptocurrencies such as Bitcoin, Litecoin, Ripple and Ethereum, this does not come as a surprise. In 2013, Bitcoin first entered the market with a value of around $13 per share. Reaching an average value of around $15,000 per share after only five years, however, it has become apparent that blockchain technology warrants attention. Certainly, this technology is still rather infantile and subject to market volatility, but the world is starting to understand the significant impact that blockchain technology will have on the economy in the years to come.
4. Virtual Reality
In a world full of millennials, Virtual Reality is naturally finding its space in the financial industry. This is especially useful as non-traditional banks are on the rise. With VR, banks and financial service providers can create a more engaging experience for users. This also aids in improving the users understanding of more complex financial matters, like starting a family trust or securing a mortgage loan. Having an interactive element ensures that users have access to the information that they need when they may otherwise opt to forgo traditional counseling at a brick and mortar location. For the business itself, it improves productivity and aids in establishing trust with the clients.
Excellent customer service is crucial for banks and other financial institutions. Clients with concerns can become distraught and even panicked if they detect fraud or otherwise have a concern regarding their finances. Using chatbots, financial institutions can put their clients at ease and this is a concept that they are starting to understand in recent years. Although clients will not reach a live person through a chatbot, they do receive an instant response which provides a sense of comfort. Whether they reach the chatbot after hours or on a holiday, the basic information provided may be all the help that a client needs. For instance, if a customer cannot remember their login information for online banking- the chatbot can direct them in the right direction on how to reset their password. In these cases, the problem will be resolved without the client having to wait for regular business hours. This eliminates the level of frustrated clients and gives an overall more thorough customer service experience. Likewise, it can allow the company to determine any areas of concern that are prevalent among their clients.
While many of these technologies have already become prominent in other industries, the key of 2019 will be implementing them into this industry in a more secure and effective manner.