The World Economic Forum introduced the notion that we have entered into the The Fourth Industrial Revolution during 2016 when this concept was the theme if its annual meeting in Davos, Switzerland. The recognition of this era entails its impact to a variety of sectors from healthcare to retail as we see the melding of hardware, software and biology. According to the World Economic Forum, financial services have a great opportunity to help usher in this new era.
Groups from a variety of industries have realized that the best way to meet their customers’ needs is through investing in the continual development of their digital technology and automation capabilities. Customers are also beginning to expect and demand personalized service. One industry that should be at the forefront of solving problems and improving service – Fintech.
Making Tech More Customer Friendly
In order for fintech to truly fulfill its role, technical services in finance need to become more accessible. Many people view finance as a “foreign industry.” The subject matter already is a murky environment for many, and tech has been slow to help. Until individuals understand tech and finance, the digital transformation’s potential will be limited.
In light of this, organizations need to focus on investing in the right digital infrastructure. Without this infrastructure, consumers won’t be able to access and enjoy the benefits of fintech. However, Individuals are trending in the right direction. Almost half of the world’s population now uses some sort of mobile technology for their banking needs. That number has grown dramatically every year, and we can expect to see it continue to grow. This growth isn’t just limited to developed nations. Developing nations are also relying more and more on technology to create advanced banking systems.
How Will Financial Institutions Keep Up?
So what is the best way to make fintech relevant and accessible to consumers? Many fintech experts believe that partnerships between banks and fintech firms are the best method. After all, mobile banking often requires such a partnership. Mobile banking, however, will not be the only way to take advantage of fintech. In the future, financial institutions might focus on launching their own fintech solutions that effectively address their customers’ needs. This would potentially be more efficient than partnering with a fintech firm for a traditional product launch.
What Change Will Look Like
Fintech will fundamentally change the banking system. Technology will enable financial institutions to use robot configuring and artificial intelligence through chatbots. This will free up staff members who will then be able to focus more on other tasks such as analysis, resolving issues, and developing new ways to use technology. This could change the entire dynamic of the workplace.
One example of what change in the banking system will look like is HSBC. HSBC has already increased their own automation capability. Now it offers employees a chance to improve their skill sets when it comes to technology. HSBC already has four Digital Operations Centers and 120 Robotic Process Automation configurers.
The Fourth Industrial Revolution has paved the way for fintech to soon become commonplace. In order for this to happen, fintech will need to become more accessible and financial institutions will need to evolve to keep up with the changes. However, we are already seeing examples of people taking advantage of fintech around the world, as well as banking groups who are revamping their systems to better meet customers’ needs.