Tuesday, 23 June 2020

Fintech Industry Revamping Operational Infrastructure through Innovations

Just like every other industry shifting its operations and serving customers in the digital environment, financial businesses are striving hard to revamp their operational infrastructure as well. The penetration of people towards digital space demands digital services that people could obtain without visiting any physical branch of the bank. The world prefers performing online activities instead of waiting in queues for their turn to be entertained by the banking services. 

The fintech industry has now revolutionized and paved the roads for cumbersome traditional banking methods and practices. For instance, technology is replacing traditional processes by integrating automated APIs and technological structures into the financial system. Many technologies are in the intersection with others are contributing to the Fintech industry to compete with the race of technology that is driving the expectations of customers. The following are some use-cases which have employed innovative solutions to streamline the daily banking operations to operate in a digital environment:

Digital Accounts Protection

The protection of user accounts and their information in digital space is a regulatory requirement. This can be ensured by having a stronger customer authentication mechanism in place that could help online financial businesses verify their customers strictly and do not allow unauthorized access over their user accounts. As uncontrolled access can compromise the personal and financial details of the users. 

Facial Recognition Verification

Instead of the traditional identity authentication methods such as 2-factor authentication and username password authentication methods, now biometric facial recognition technology are been employed. Biometric authentication methods are now becoming the strongest ways of authenticating users online which take mere seconds when it comes to verifying the facial biometrics of users online. Facial recognition technology ensures customer experience.

Robotic Process Automation (RPA)

The pace with which business operations are revamping is the reason for the development of businesses. In the fintech industry, RPA ensures automation of all the daily operations. For instance, to meet the regulatory requirements KYC (Know Your Customer) and Anti-money Laundering (AML), the processes are automated such that the AI-based systems verify the identity of customers by screening them thoroughly. This helps fintech businesses mitigate the risks of financial fraud as well as comply with the regulatory requirements. 

ERP and CRM systems

Now fintech businesses are employing Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) to manage the business operation in an efficient way. These processes help the management and employees to maintain the records, activities, and data of customers in one place. These tools help easy maintenance of all the information that further helps in decision making that ultimately contributes to the generation of high business revenue. 

Cryptocurrency and Blockchain

An emerging trend from the past few years is now serving various use-cases of the finance industry. For instance, the highly confidential information of customers is stored over the blockchain that mitigates the risk of data breaches and identity theft. Blockchain ensures controlled access over the data therefore no unauthorized entity could access it, edit or temper it. The fintech industry is now adopting innovative solutions that could align well with the cybersecurity requirements. 

To sum up, the fintech industry has now entered into the world of technological advancements where to meet the needs and demands of customers living in the digital world, the adoption of innovative solutions has now become a necessity. Automation and integration of technical solutions into daily business norms can help managements provide services to the customers efficiently and at the same time take into consideration the aspects of enhanced customer experience.

fintech concept -DepositPhotos

The post Fintech Industry Revamping Operational Infrastructure through Innovations appeared first on Tweak Your Biz.



source https://tweakyourbiz.com/business/technology-trends/fintech-innovations

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