The financial services industry has been permanently changed by technology. Gone are the days in which customers had to drive to their local banks to make transactions or manually balance their checkbooks. Fintech has made managing finances simple, with access to all kinds of accounts just a click away.
But new apps aren’t the only technology that’s shaping financial services. Banks and other firms are using new tech in many ways to improve the customer experience, streamline their own processes and expand services. By tapping into artificial intelligence, data analytics and blockchain technology, the industry is primed for a transformation. These are the tech trends to watch for in 2020.
1. The Role of Artificial Intelligence in Finance Will Expand
The use of artificial intelligence has touched nearly every industry, and the financial sector is no different. Some of its uses have been around for a while, like using AI and predictive analytics to determine who should be able to pay back a loan, but that use has expanded as banks have gone digital.
AI now helps chatbots give informed financial advice, aids in fraud detection and can even help guide customers’ investments. A study from Accenture found that 54 percent of bank customers wanted tools to help monitor their budgets and make real-time adjustments, with 41 percent saying they were “very willing” to take financial advice from AI. Personalized, real-time advice is a need that’s only growing, and AI will drive those tools for financial services firms.