Technologies that Will Disrupt Financial Services in The Next 5 Years

Technologies that will disrupt the financial industry
14 Sep 2020

The past few years have seen some significant changes in the financial industry, given the digitalized environment that has started to crystalize all around us. New technologies such as artificial intelligence, machine learning, or blockchain, have emerged and have transformed the way customers interact with banks, in an attempt to satisfy their ever-growing demands. So what do the next-generation technologies have in store for the financial scene next?

Hyper-automation.

Technologies that will disrupt the financial industry

The term “automation” is pretty self-explanatory, but what does hyper-automation mean? It does of course have something to do with the automation of processes, but it embodies more than that. Hyper-automation encompasses artificial intelligence and machine learning, in order to identify and automate business processes and reduce manual processing. Intelligent automation recognizes and retrieves data from forms, enabling automated data entry, eases payments, and facilitates investigations regarding payment issues.

5G.

5G has already begun to shake up the financial world and promises to bring many benefits to banks and financial institutions. By implementing 5G technology, transactions will become much faster and applications for loans, or any other operations for that matter, will be carried out a lot smoother. Combined with mobile banking, 5G will allow clients to access financial services through mobile apps, manage their account, and perform operations from the comfort of their home in just seconds. At the same time, banks will be able to handle larger volumes of requests and increase their efficiency.

Augmented reality.

What was before considered possible only in sci-fi movies, is closer to reality than we think; in the next 5 years, augmented reality will take customer experience to a whole new level. Besides benefiting from a more personalized experience, clients will be able to know more about a product by simply pointing their smartphone camera at it, and make instant payments as well. Banks can also use AR to attract customers by making visits to brick and mortar branches more enjoyable, while financially educating their clientele through AR-enhanced presentations.

Spatial computing.

But augmented reality isn’t the only technology that will greatly enhance customer experience. Spatial computing will allow customers to control future banking user interfaces with just their voice, eyes, and gestures. This technology is already being used in the automotive industry, and financial services are next. Blurring the line between physical and digital is also facilitated by devices, such as VR glasses which immerse the user into a digital realm, and the development of such equipment will continue to surprise and satisfy even the most tech savvy customer.

Blockchain.

The future of blockchain in banking is very promising. In the next few years, we will be witnessing the implementation of blockchain technology in most banks and financial institutions. With no third-parties involved, banks and clients save up on transactional costs, and benefit from simplified transactions. Financial institutions have already started investing in blockchain and have already begun to reap the benefits, that translate into increased efficiency, security and profitability.

Robotic process automation.

In the next five years, robotic process automation will assist banks even more than it does today. Up until now, RPA has been used by the financial sector for its ability to automate time-consuming repetitive tasks, that keep employees from focusing on core activities. However, it is expected that RPA will mimic human actions even more in the near future, and will be able to tackle increasingly complex assignments. Apart from this, RPA helps banks detect fraudulent activities, protecting both clients and financial institutions against threats.

Conclusion

The financial industry has been greatly influenced by new technologies and is in the process of digitization. Blockchain, AR, hyper-automation, and 5G are just some of the technologies that will be disrupting financial services in the near future, as banks have to get in line with the digital times, and find new ways to innovate so they can appeal to customers.

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