Data analytics is a ground-breaking must-have for fintech
Financial sector is probably the most data-intensive one, as it has been operating data for a long while but the most challenging thing is making the data work toward business growth. Most financial companies are not very good at using these rich data sets due to an unstructured approach to data processing and data silo. That’s why the FinTech sector is considered a frontrunner in investing in Big Data and analytics.
Regulatory Technology (RegTech) in FinTech
Companies use regulatory technology or RegTechs to improve their ability to monitor, report, and comply with regulatory requirements. With the help of big data, cloud computing, AI, and predictive analytics, these start-ups are able to automate compliance tasks, reduce risk fraud, perfect authentication and identity management. Regulatory technology can also help banks to increase transparency and consistency while reducing the expenses of compliance. .
Open Banking Application Program Interfaces (APIs)
Open Banking Application Program Interfaces (APIs) will affect the traditional banking model more than any innovation. Through open APIs, banks give clients and partners more transparency and admittance to banking information and empower the making of new value chains and administrations. Up to this point, Banking-as-a-Service was viewed as the principal model of how FinTech start-ups influence Open APIs to make new administrations and products that further develop the financial experience for buyers and create esteem. But Banking-as-a-Platform is now the next Open API model, which permits banks to give curated different third-party financial services to clients. Also, banks can hold control of client information and guarantee the best quality services on their platform.
Customer intelligence as a revenue predictor
Back in the day, customer-related data was gathered based on focus groups and surveys. However, the results were rather vague, and it was hard to draw any conclusions. Currently, businesses have access to large volumes of data. They can use Machine Learning to analyse it and reveal significant insights about what customers need and value, which in turn helps financial institutions to provide more personalised experiences.
Robotics facilitating operations & customer service
A technology trend that is widely adopted by fintech is robotics for internal processes and customer service automation. Robotic Process Automation (RPA) leverages machine learning & AI to automate a variety of tasks, including: