The way the banking and financial services sector functions has changed as a result of technology. With the goal of utilising current data and improving customer experience, the banking sector started to embrace technologies like Artificial Intelligence, Machine Learning, Mobile Banking, RPA, and Blockchain throughout time.
The sector has benefited greatly from automation thanks in large part to innovation. The BFSI industry has greatly benefited from the use of technology as it creates a significant client experience for quicker and better outcomes. This makes banking and financial services more convenient.
Bahaa Abdul Hussein lists out some of the ways in which Technology is helping the BFSI Industry:
1. Mobile Payments
By 2025, mobile payments will account for 39% of all point-of-sale transactions, making them a solution for all types of payments. Due to the prominence of digital currencies made possible by mobile money, there is a clear correlation between simplicity of use and convenience in mobile payments. This type of banking has significantly contributed to the correction by internet-enabled gadgets like watches, tablets, and mobile phones.
2.Machine learning and AI
A key component of AI is machine learning. To create an algorithm based on the desired outcome, we can analyse hundreds of programmes using machine learning. AI and machine learning assist in identifying fraudulent data patterns in new transactions. They have over time established an amazing potential for financial fraud detection using networks that can help both humans and machines solve problems. The computer system uses deep learning to ensure consistency, assisted by AI and machine learning.
3.Cloud Computing
With the use of cloud computing, it is possible to keep crucial data that is replicated on the provider’s network and accessible to many different businesses. Simply put, you will manage files and services online at a reasonable cost rather than managing them locally.
4. Data Analytics
Data analytics applications are becoming a crucial component of the BFSI sector. In the banking sector, AI is typically employed wherever on the channel side. You can find their applications where clients engage with the bank using a variety of tools and technologies to gather, process, and analyse unstructured data. People frequently discuss data analytics because it enables real-time decision-making by sending data in a matter of minutes or seconds.
5. Blockchain
A distributed database or ledger that is shared across the many computer network modes is known as a blockchain. A blockchain functions as a database that electronically saves data in digital form. By decentralising different payment methods, BFSI Industries has established the most recent technical advancements in banking.
These are just some of the technologies that serve as catalyst to Innovation in the BFSI Industry. With technological advancement increasing, more innovation in the industry can be expected.
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