Photo: zerbor via 123RFFintech is a growing sector that develops computer programs, technology, and products for banking and other financial services. Individuals use fintech products for personal or business banking and investing. Fintech for the financial services industry encompasses analytics, improving customer services, and expansion into new models such as decentralized financing like Blockchain.As an article on KPMG notes, “According to the Pulse of Fintech H2’21, total global fintech funding reached $210 billion across a record 5,684 deals in 2021.”
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While Fintech investments slowed in 2024, with total global investment declining from $62.3 billion to $51.9 billion, there is still a focus on advancement, particularly related to artificial intelligence (AI) and regulation technology (Regtech).Self-ServiceAs customers become increasingly comfortable banking, shopping, and investing without professional interactions, self-service options have grown in number and sophistication. ATMs have advanced beyond dispensing cash and now offer account transfers, bill payments, and other transactions. Interactive Teller Machines (ITMs) combine the functions of an ATM with the option to connect with a live teller using video conferencing. The teller can answer questions or assist with opening a new account.
Fintech is also churning out self-service options for retail, hospitality, and entertainment, which are likely to continue expanding. These include ticketing kiosks for airlines, movie theatres, and concerts, as well as self-check-out at stores, and self-check-in at hotels. Banks and companies with previously cumbersome processes or ones that required working with a professional, such as getting a mortgage or other loan, are developing more self-service options.Financial WellnessThe World Economic Forum “finds that people seek out one-stop shops that can provide comprehensive, unbiased advice on all their financial needs, supported by long-term plans around major life events.”This holistic approach incorporates financial education and community-based support and may drive adaptations to how financial advisory services are delivered.AI and PersonalizationFintech will see artificial intelligence (AI) advancements for customers, employees, and companies in the financial sector. It can help personalize and simplify the customer experience by learning about customer preferences and tailoring services and interactions. AI will also play a vital role in automating financial advisor and banker tasks, fraud prevention, and regulation compliance.
“Where humans would need to spend ages tracking regulatory updates and making sure the right rules are being applied, AI can do the job in no time, with complete accuracy,” a Thompson Reuters article notes.Photo: armmypicca via 123RFRegulationRe