Fintech is collaboration of finance and technology. Technology such as Artificial intelligence, machine learning, big data is used to eliminate risks, provide optimum output and increase the investment opportunities. New emerging startups have are the reason behind the rapid growth in Fintech. Fintech mainly has a financial focus. Fintech has various verticals. One of them is banking tech.
What is Bankingtech ?
Bankingtech is term used for the technology used in banking. From the core banking solutions to high end customer service robots, everything is the part of the bankingtech. Bankingtech comprises of the legacy systems as well as the new age banking technologies. In day to day transactions, customers use the internet banking, credit cards, ATM machines. Today banks are implementing technologies to secure the banking transactions while making it efficient and customer friendly. To make it smart they are also using Artificial intelligence, Machine Learning, Robotics Process automation, chat bots in their daily operations. Usage of new technology in the banking sector has completely transformed the banking and the business activity.
The bankers use various chat bots and computer programs to communicate with the customers. These chat bots and computer programs are created using artificial intelligence. Some chat bots answer the queries of the customers in real time whereas there are other chat bots that that help the customers in filling forms.
Risk is one of the important aspects of banking sectors. If not managed properly it can have drastic effects on the organisation leading to major financial losses. Hence it is important to mitigate risks using technology. Risks can be managed using predictive analysis. Here, with the study of risks in the past, upcoming potential risks can be predicted and accordingly measures can be taken to combat them with the aid of the bankingtech.
In banking sectors millions of transactions take place on daily basis. Due to this, the transitions are prone to number of frauds. Banks tackle frauds by using artificial intelligence. Just like predicative analysis, by studying the frauds in in the past, bankingtech to combat the current frauds are developed. Use of AI drastically decreases the manual thereby providing more accuracy.
Customer identification and validating the identity of customer is an important factor in banks. Banks use techniques which makes use of Artificial intelligence to automate this process. AI automates the process of validation based various factors like photo, signature, unique id etc.
As banks use artificial intelligence and machine learning to automate the processes, it helps the banks in adapting the changing regulations. Due to this the banks remain compliant with the standards put forth by regulatory agencies.
The technology is making huge contribution in the development of all the sectors. Making new innovations in technology and using it in the banking sector has strengthened the security, customer integrity and has provided efficient results.