The main technologies shaping the fintech industry
The fintech industry is one of the most dynamic and fastest growing industries in today’s global economy. Fintech has become a buzzword because it refers to any technology that supports financial services. Fintech covers almost every aspect of financial services, from payments to personal finance management, investment services, and so on. While there are many trends in fintech such as artificial intelligence (AI), machine learning, blockchain technologies etc., this article will focus on some key technologies shaping the future of fintech industry— cloud migration & adoption; big data analytics; cybersecurity threats
Artificial intelligence and machine learning
As you probably know, artificial intelligence and machine learning are the biggest disruptors in the fintech industry. AI and ML have been used in a variety of fintech applications that are making it possible to automate a lot of processes.
For example, AI-enabled chatbots can be used for customer service automation, where they can answer questions about products and services. Machine learning algorithms can also analyze big data sets to detect fraud or assess risk profiles when making lending decisions. As we continue to learn more about how these technologies can be applied, we’ll probably see even more disruption coming from this space as well!
In the simplest terms, blockchain technology is a distributed ledger. It allows people to record transactions across a large network of computers, which can be public or private. These transactions are recorded in blocks that are added to form a chain. The data is stored on each of the computers participating in the blockchain and cannot be altered without approval from all parties involved—it’s essentially an incorruptible system for storing data.
For example, if you needed to store your credit card information or identify information about yourself online to make purchases on Amazon or Netflix, you would usually provide that information directly to those companies when you create an account with them (and hope they protect it). Blockchain could eliminate this step by providing a more secure way for platforms like these companies’ websites or apps to access personal data from their users’ phones when needed—without having access themselves!
Big data is the collection of large and complex data sets that demand cost-effective, innovative forms of information processing for enhanced insight, decision making, and process automation.
In a professional tone: Big data is a term used to describe data sets so large and complex that traditional data processing applications are inadequate. For example, several years ago, it was impossible to store the entire Library of Congress on one computer because computers were not powerful enough at that time to handle such a large amount of information. Today we can easily store all books ever written in digital formats using our smartphones! This has created abundant opportunities for researchers across many fields (e.g., marketing).
Cloud migration and adoption
Cloud migration and adoption will continue to be a key trend in the fintech industry. In a nutshell, cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction.
The cloud provides massive benefits for developers who want to create new applications quickly without having to worry about infrastructure or hardware. These days you can build an entire app using nothing but online services like Amazon Web Services (AWS), Google Cloud Platform or Microsoft Azure.
Cybersecurity is a top priority for financial institutions, consumers, government agencies and the military. It’s also a hot topic in the private sector. Given the growing number of cyberattacks on various sectors of society and the widespread use of technology in our day-to-day lives, it’s easy to see why cybersecurity has become such an important issue.
The average person uses over 20 different types of apps and devices to access their finances. Financial institutions are responsible for protecting all this data from hackers—and they’re doing so by increasing their investment in cybersecurity technologies like artificial intelligence (AI) systems and biometric authentication methods like fingerprint scanners or facial recognition software.
Maintaining security is challenging. Therefore, it is essential to use hired expert services that protect the fintech business via ongoing monitoring. Constant risk assessment aids in detecting hazards in real time. As part of their auditing processes, fintech organizations often select AI-powered technologies, such as Business Verification, to automatically screen suppliers.
All of these technologies are shaping the financial industry, and they will continue to do so for many years to come. It’s exciting to see how technology can change our lives in so many ways, and we’re confident that it will continue to do so in this area as well.