By Ross Nelson
Will advancements in financial technology help your company navigate risks while cutting costs? From the services you use to the ones you provide, these cutting edge fintech trends may change the way you do business.
As chatbots move to mainstream and digital-only banks make waves, regulatory requirements, and customer expectations fuel innovation. The need for speed, security, and convenience are well-known but difficult to implement in the financial sector. However, this is changing as more organizations invest in technologies that give them an edge in the market. Plus, an increase in venture capital (VC) funding for fintech startups is spurring a new wave of services.
According to PwC, “global investments in fintech have more than tripled since 2014 to over $12 billion” with no signs of slowing down. The funding combined with industry pressure will advance tech adoption more rapidly than in previous years.
Discover three fintech trends that’ll help your company save money while meeting customer expectations.
1. Mobile Payment Options Go Mainstream
According to G2 Crowd, “the worldwide volume of mobile payments will grow by 60% over the next two years.” Mobile banking puts control into the customer’s hands while breaking down barriers to access. However, this fintech trend covers a range of payment options, including virtual currency and blockchain. The Fintech Times calls these technologies an “Internet of Payments,” and all of these choices change how consumers view mobile banking and fund transfers.
2. New Benefits from Cryptocurrency And Blockchain Innovations
The move towards blockchain’s use in financial institutions has been slow but is still a very important fintech trend. However, a Greenwich report finds, “The financial services industry currently spends $1.7 billion each year on blockchain technology.” Blockchain investments aren’t expected to slow. Data from PwC shows, “77% of officials in top management positions expect to adopt blockchain as part of a production system or process by 2020.”
3. Increase In Dependence on Intelligent Technologies
From traditional establishments testing robo advisors to advanced algorithms assessing credit profiles, we’ll see companies expand their use of intelligent technologies. The mixture of artificial intelligence (AI), machine learning (ML), and robotic process automation (RPA) provides multiple benefits to those in the financial industry. Technologies that deliver, manage and analyze data help financial services reduce the time and cost associated with workflows. As use grows, customers expect conventional institutions to keep up with the pace.
Fintech Trends Speed Up Adoption of Tech
Although in the past, the financial industry evolved slower, business organizations are moving more rapidly towards agile workflows and systems. This stems from a need to adapt for changes in consumer behavior and regulations while facing threats from non-traditional competition. In the World Retail Banking Report by Capgemini and Efma, “….bank executives said non-banking players are affecting the financial service (FS) value chain across all lines of business.”Delivering what customers want requires a total digital transformation in the industry. Going forward,consumers benefit from improved user experience. However, the rapid pace of fintech innovations means more institutions can realize advantages, like cost savings, sooner than later.
Can Cox Business help transform your financial institution? Contact us today to find out how we can help. Visit cox.com/business/home.html to learn more.
By: Ross Nelson, New England Market Vice President for Cox Communications’ Northeast Region
Ross Nelson is New England Market Vice President for Cox Communications’ Northeast Region. He has been with the company since 2000 and recently earned the position leading one of Cox’s six regional markets. Nelson is based at the Northeast region’s headquarters in West Warwick, RI and oversees the company’s Rhode Island, Connecticut, and Ohio markets
Contact Ross via Ross.Nelson@cox.com
