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Finance

Fintechs to rule the banking sectors in the future

The financial system is being continuously reshaped and made to bloom by the ‘Fintech’ technology. As the financial innovators race to reach the market demands, the financial industry won’t be just about the investment firms working off in-person advice. With the approach of the digital transformation approach fintech not only created different approaches to interact with the right customers but also came through as an upgraded lifestyle for most of the millennial today. From being just a part of the banking sector, Fintech is now a relative term in the means of technology. More than 70 per cent of the bank executives recognize customer banking to be likely taken over by the Fintech. But does that put the traditional banking to an end, if the Fintechs keep flourishing at this speed? So how does Fintech actually affect the banking system? Well, to answer these questions, let us know about few of the key duties the Fintech performs like Biometric scans, Customer service chat bots, mobile banking, Artificial Intelligence, Branchless Banking, etc.

As Fintech addresses various sectors and issues of the banking industry, one of them is the biometric sensors. Two of the technological advancements, that is the Biometric sensors and Iris scanners which the automated tellers are observing, which has helped reduce the workload of the employees. Other than providing ease of access and working, they also create more secure ATMs which will allow the users to access their account without having to manually enter the password. As these biometric censored ATMs use the degenerated mobile apps and fingerprint scanners with eye recognition technologies to identify the owner of the account. Using these biometric tech introduces a huge sense of relief and security for the ones who would have lost their ATM cards as they would be able to access their funds even when do not have their card on them.  The other interesting advancement is Customer service Chat Bots, which was introduced by the Fintech in the recent years. The Chat bots are the bits of software created to constantly learn from the human interventions using machine learning. There are very efficient is rationalization the customer interactions like handling queries or guiding the customers to their requested departments. It also perform tasks like providing investment advice to its customers. The ever growing technological improvements and innovation, Chatbots have acquired an important position in the banking industry which is helping in improving customer satisfaction and call agents to address the issues for adding more value. Next comes Mobile banking in the list, as the use of smartphones is widely increasing and enforcing the banking sectors to come up with Digital apps which support the Fintech services and delivers it to that customers. The mobile apps have inbuilt fingerprint scanners without having the biometric hardware which provides customers with ease of usage. Functions like checking account balance, bill payments, deposition of cheques and much more are inculcated. AI and digital transformation have started exploring the traditional banking and is making its home in it as these banks are utilizing it for fraud detection and giving essential information of whether the fraud was real or fake as it stores customer data and cookies to help with the investigation. McKinsey says that implementing machine learning-driven statistical modeling and process automation can give the desired make over to the AML tasks by implementing new efficiencies and innovations. Many banks are now reducing their branches after adapting online banking services. After all these innovations and adaptations, only time can tell how the Fintech will continue to influence the banking sector and rule the finance departments. 

Finance

Euro zone ministers expect inflation to slow in 2022

The acceleration of euro zone inflation, driven energy prices, is mostly temporary. Then the price growth will slow down again. The euro zone finance ministers agreed that, that too the next year as forecasted by the European Central Bank and the European Commission.

Paschal Donohoe, chaired the talks of the ministers in Luxembourg. In a news conference he said that there was also agreement that the inflation spike was not an argument against the transition to renewable sources of energy. This is under the EU’s ambitious plan of reducing CO2 emissions to zero by the year 2050.

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Finance

Under new rules, borrowing for investment sensible

British finance minister Rishi Sunak said that the government borrowing to fund investment was a sensible thing. This is to allow under new fiscal rules that he is likely to announce, unlike borrowing for day-to-day spending. He said that borrowing for capital investment that is going to drive up their growth is probably a sensible thing for them. And that too particularly in an environment of slightly lower interest rate. Sunak stated this in an event on the sidelines of the annual conference of Britain’s ruling Conservative Party. This event was organized by the Taxpayers’ Alliance advocacy group. Sunak stated in that event, that borrowing for more day-to-day spending is probably less something that you would want to have as part of your framework.

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Finance

IMF board to interview Georgieva-sources

The International Monetary Fund’s executive board is going to interview Managing Director Kristalina Georgieva. This is regarding that; its reviews claims that she pressured World Bank staff to alter data to favor China in her previous role. Board members were initially expected to meet with Georgieva. But spent their time working on other regular business matters.

The board members spent hours for questioning lawyers from the WilmerHale firm. This is about their World Bank investigation report which alleged that Georgieva, as the bank‘s CEO applied undue pressure on staff, to alter data in the flagship “Doing Business” report to benefit China. Then, an IMF spokesperson said that the IMF board remains committed to a thorough, objective, and timely review of the matter. Georgieva has strongly denied the accusations.

The upcoming interviews could prove pivotal in either increasing support for Georgieva. This is with many IMF shareholders are keen to wrap up the board’s deliberations on the matter. The fund’s most influential member governments, including the top shareholder the United States, have withheld public judgment. The World Bank tasked WilmerHale with investigating the “Doing Business” data irregularities identified in 2020. The law firm’s report contends Georgieva. The former World Bank President Jim Yong Kim’s office pressured staff to manipulate data so that the China’s global ranking in the “Doing Business 2018” study of investment climates rose to 78th from 85th.

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