The Future of FinTech: Trends to Watch in 2024

Drive digital customer experience

The rise of digital technology has been changing the way businesses interact with customers, shifting from communication methods to digital platforms. Over the years, consumers have become increasingly popular, creating conditions for businesses to increasingly build optimal customer experiences on digital platforms. According to research by Futurum Research, 85% of businesses revealed that customers are increasingly aware and are actively adopting digital forms.

Designing appropriate strategy and providing personalized experiences is the key for businesses operating in the financial sector to expand their creative space and increase competitive benefits in the digital era. Therefore, many banks are trying to take advantage of the power of modern technology to develop services/products suitable to the diverse needs of customers, from digital banking to cooperation with fintech and banks. open,...

Reaching customers in the digital space is the top priority of the Finance - Banking industry in the 4.0

To achieve a superior digital customer experience, financial institutions can leverage the power of Artificial Intelligence (AI) and Machine Learning (ML) to enhance personalized customer experiences.

• Thanks to the ability to analyze customer behavior, needs and desires, AI can recommend products/services that match customers' financial behavior and spending habits.
• Machine Learning algorithms can be utilized to analyze customer behavior trends, thereby providing strategies for businesses to reach customers more effectively.

Enhance technology application

In 2024, modern technology trends and many breakthroughs are expected to explode in the Finance and Banking sector to meet the constantly increasing needs of customers.

Artificial Intelligence and Machine Learning

According to Business Insider, 80% of banks are aware of the potential benefits that AI brings.

AI-powered chatbots are becoming increasingly popular in the banking and financial services industry, promoting efficient and personalized interactions for customers by leveraging Natural Language Processing algorithms. Processing – NLP) to understand context and natural language.

Besides, AI and ML are used to analyze the bank's huge amount of data, including customer data, forms, transactions, loan applications, etc. and identify sample data and errors. Risk model based on transaction history or spending habits, thereby supporting financial institutions to make appropriate strategic decisions.

AI and ML are also being deployed by banks to detect and prevent fraudulent activities, effectively implement anti-money laundering processes (Anti-Money Laundering - AML) and know customers (Know your customer). – KYC).

In the future, AI and ML will gradually become key technologies of the 4.0 Industrial Revolution, bringing satisfaction and convenience to customers and improving profits and competitiveness for businesses.

Smart automation

According to a 2019 report, nearly 85% of banks have deployed Intelligent Automation (IA) to accelerate automation of some core functions. By integrating Robotic Process Automation (RPA) with AI models such as Machine Learning, Natural Language Processing (NLP), Computer Vision, Intelligent Automation is a quantum leap in automation, changing the way the financial industry operates and opening up new opportunities.

This technology solution can understand, collect and analyze unstructured data such as legal and regulatory documents, customer data, transactions, etc., extracting data faster without intervention. human greeting card. These data typically account for 80% of all business data. Additionally, financial businesses can leverage Intelligent Automation to identify fraudulent and suspicious transactions, reduce processing time while improving compliance and security.

Intelligent automation is a big step forward in banking digitalization

Besides, leveraging Smart Automation can create a comprehensive end-to-end process, speeding up processes in the banking and financial services industry, including KYC, loan processing, mortgage applications, etc. This allows financial institutions to optimize operations, improve operational efficiency, save costs and create new experiences for customers. This technology solution also frees employees from mundane tasks to focus on more complex projects that deliver greater value.

Blockchain

Blockchain promises to completely change the Finance and Banking industry by 2024 thanks to its ability to transmit data safely and transparently based on an extremely complex encryption system, similar to an accounting ledger. . This ensures that financial and asset transactions are recorded and tracked in an irreversible manner, thereby protecting against fraud and data alteration.

All participants in the network have access to the distributed ledger, where transactions are recorded only once, facilitating transparent transactions and smart contracts with reliability. Higher reliability and security.

Promote open banking

Open banking connects non-banking financial companies (NBFCs) and banks through application programming interfaces (APIs) to provide customers with a customized and accessible service ecosystem closer.

Open Banking solution helps banks reach a diverse range of customers at reasonable costs through partner applications. Banks can build accurate consumer profiles to create personalized products and services, thereby increasing customer loyalty and their experience on digital platforms.

On the other hand, with Open Banking, customers can grasp the overall picture of their personal financial situation from the bank and access a wider range of products and services. In addition, Open Banking includes account aggregation tools to ensure customers have greater control over their financial data through a single platform.

Banks and financial institutions have started adopting Open Banking to drive innovation and improve customer experience.

Expanding banking services (BaaS)

The emergence of Banking-as-a-service (BaaS) is predicted to be the new development driving force for banks. With BaaS, businesses can seamlessly integrate financial products and services into their platforms.

BaaS is an important component of the Open Banking model, allowing businesses to capture customer needs and behavior, thereby providing unique products for each audience. In addition, BasS is also a strategy for businesses to speed up market access and product innovation without spending costs or resources to maintain legacy systems.

Additionally, by partnering with non-financial companies, financial businesses can leverage trust and enhance customer satisfaction on an existing basis, while increasing the number of potential customers. . This cooperation strategy not only enhances the financial ecosystem but also creates a healthy and diverse competitive environment.

The trend of digital transformation and the wave of blooming technology will continue to be a springboard to promote the growth of the Finance and Banking industry in 2024. Therefore, businesses need to continuously update information about these trends. upcoming direction to take advantage of new opportunities and keep up with the pace of continuous and strong digital transformation of the global banking and finance industry.

Reference source: Summary

Compiled by the DTSVN author group - Digital transformation solutions for the Finance and Banking industry.

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