5 Tech Trends Shaping the Future of Financial Services

 
 

As we move closer to a Web 3.0 world, these are the five technological advancements that will influence the financial services customer experience.

 

1. Internet of Things (IoT)

 

What it is

More and more devices are connecting both to the web and to each other, allowing for quicker and more seamless access to real-time data.

 

Why it’s important

IoT tools are providing unprecedented access to real-time device usage. As time goes on, this will make it easier for finserv businesses to build a complete view of their customers’ channel preferences.

 

Fun fact

Growth-oriented companies are 22% more likely than competitors to invest in omni-channel services*

 

2. Distributed ledger technology (DLT)

 

What it is

A digital system that records transactions and their details in multiple locations at the same time, creating a transparent, traceable, and open ledger.

 

Why it’s important

Blockchain technology, coupled with its cousin DLT, can help banks reduce or eliminate the use of intermediaries in key banking services. This is particularly beneficial for services like payments and fraud prevention.

 

Fun fact

Implementing new technology and building/improving customer trust are the top two priorities for financial services businesses for the next two years*

 

3. 5G

 

What it is

The fifth-generation wireless standard that endeavours to connect people, devices, machines, and objects at speeds 100 times faster than 4G. 

 

Why it’s important

Thanks to the low latency and data-handling powers of 5G, financial institutions will be able to deliver fast and highly reliable services to consumers, wherever they may be.

 

Fun fact

In retail banking, 75% of growth-oriented companies are expanding digital tools and access to products and services*

 

4. Artificial intelligence (AI)

 

What it is

Adopting automation and machine learning to enhance the efficiency and productivity of systems and processes. 

 

Why it’s important

AI will continue to enable deeper relationships between financial services institutions and customers. Customers will benefit from more personalised product and service offerings.

 

Fun fact

66% of customers expect companies to understand their unique needs and expectations*

 

Quantum computing

 

What it is

A giant leap forward in computation that uses quantum mechanics to process information and solve problems that even supercomputers can’t.

 

Why it matters

Quantum computing will be able to distil complex, real-time data into instant insights. This allows for more authoritative financial decision-making by banks, insurers, and wealth managers.

 

Top impacts of data-driven automation by sector*

 

Retail banking

  1. Automating account transfers
  2. Personalised product recommendations
  3. Automatic pre-qualification

 

Insurance

  1. Claims processing
  2. Risk modelling and monitoring
  3. Risk evaluation

 

Wealth management

  1. Financial advising
  2. Portfolio optimisation
  3. Private equity fund optimisation

 

Want to learn more about how technology can help financial services organisations? Download our e-book and read about how technology is key to transforming the customer experience

 

*Source: Trends in Financial Services, 2020, Salesforce.