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.