Welp MagazineWhat IT solutions with advanced technologies increase the competitiveness of your business? Financial product development services are designed for small and medium-sized businesses as well as large financial corporations. It requires a high level of service, experienced programmers, and constant upgrading of software products.
In this article, we’ll break down the meaning of fintech and trends in the development of the financial sector.
Financial products trends
The difference between centralized (CeFi) and decentralized financial systems is how their users achieve their goals. In CeFi, users rely on the people behind the business and the regulatory laws. With DeFi, users rely entirely on technology, software code, and encryption algorithms. So, what are the trends in the development of these algorithms? What exactly does your business need?
Artificial Intelligence
- AI has been used by banks for quite some time to solve their internal tasks, and now it’s time for it to move to the customer side.
- Thanks to artificial intelligence, banks will soon be able to anticipate people’s desires and needs. With AI, banks will be able to personalize the content of email newsletters, set up personal recommendations for goods and services, and offer discounts that are interesting to customers. With such hyper-personalization, people will cease to be confused by the endless stream of advertising – smartly configured CRM together with AI will help both users and the companies offering goods and services.
- Artificial intelligence will not only help shape product offerings, but will also dramatically increase the security of the digital financial services system as a whole – neural networks are extremely effective in identifying non-standard customer behavior online.
Built-in biometrics (identification by face, voice, fingerprints)
Touch ID and Face ID to log into your account or banking application are no longer a surprise to anyone. Today’s technology makes it possible to carefully store user biometrics and protect data from unwanted interference. However, some people still use a password to protect their personal accounts – and it’s not that hard to steal. But soon biometric authentication will reach a new level – it will help reduce the risk of financial losses on all fronts.
It will be virtually impossible to hack your personal account: even if fraudsters get your bank card, the access to the personal data of the mobile bank and to the account will be granted exclusively to the cardholder based on his biometrics. Bonus – thanks to built-in biometrics, you no longer have to write down logins and passwords. And to make a purchase or money transfer, all you have to do is smile at your smartphone.
Giving up paper
We continue to save nature and get rid of bureaucracy – paperless services are increasing everywhere every year, including in the banking sector.
If the bank and its users have gone digital, then documents should also become – and are becoming – virtual. Banks are now actively connecting the electronic signature option so that documents can be certified remotely. A paperless signature is a breath of fresh air for bank employees and clients alike.
Just imagine: no need to travel to the other end of the city to sign an agreement, no need to print dozens of pages and send them by courier – how much time, money, and natural resources can be saved. And the client no longer has to go to the bank to apply for the service: everything is available in the mobile application – all he has to do is to certify the document with an electronic signature.
Such a signature has another advantage: it cannot be forged, which makes its use as reliable as possible.
Paperless document management is on the verge of a long-overdue transition to electronic notaries in a new form and with an expanded list of services: mobile devices have ensured confident identification of clients, and financial markets have long used only electronic documents for multi-million dollar transactions, but you still cannot buy custom-made furniture, for example, without a paper document…
Voice assistants and chatbots
- The robotization of bank assistants is yesterday’s day. But while yesterday bank chatbots communicated mostly in text form, tomorrow most will move automated service management into voice mode.
- By the way, this feature makes the banking application more inclusive – mobile financial services become more accessible to blind and visually impaired people, users with mental disabilities, and the elderly.
Additional non-banking services
Today’s users can’t get enough of classic in-app banking services. They want more.
In the future, we are likely to get more integration of different services into banking applications. The key to the success of future financial services is to cover as many daily needs of users as possible.
As far as corporate mobile-accessible services are concerned, collaborative remote work applications, task-trackers, Wiki knowledge bases, and employment monitoring systems have come to the forefront against the background of the pandemic and remote work. And task trackers (e.g., JIRA) are steadily approaching the point of fully occupying the niche of traditional corporate workflow systems, replacing their main processed object “document” with “task”.
What’s next for the financial services market
Aleph One traces a certain trend in the development of financial products and their use:
- For example, the constant overcoming of difficulties is already leading to the blurring of the boundaries between online and offline services. After all, most questions can be consulted in an online chat with support, and simple transactions only require a website.
- After support, financial services will move online, and the bank card will become completely virtual.
- Banks are actively mastering big data. They are already processing a lot of impersonal data in order to develop personalized offers.
Conclusion
The decentralized finance sector and its services and products are a handy alternative to the traditional financial system and its institutions.
DeFi services and products make it possible, for example, to borrow and lend money quickly and without intermediaries. Blockchain and smart contract technology have made this possible. With their help, all those who have access to the Internet can sign agreements and conduct transactions directly, without paying fees to third parties. DeFi members can also make money from their assets – lending, making deposits, etc.
