Impact of Information Technology on Financial Services

 

Impact of Information Technology on Financial Services

Whether it is through mobile banking or through digital modes of payments, digital technologies have played a crucial role in transforming the banking and financial services industry in India and across the world.

In the past few years, the Indian banking industry began embracing technologies such as artificial intelligence, machine learning, and blockchain with a view to lifting its existing data and revolutionizing the customer experience. 

When it comes to India with a host of initiatives, the adoption of technology in this sector has been given a boost. 

All the banking sectors still need to realize the true potential of technology. 

Now moving towards the technologies that can transform the BSSI sector, there are a number of technologies that can transform the banking and financial services industry 

like AI and machine learning, blockchain, cloud technology, mobile banking technology, and robotic process automation. 

1. AI and machine learning

As it has immense potential in the detection of financial fraud, it can identify fraudulent data patterns in new transactions. 

Ai-based algorithms offer a high level of accuracy, validating credit-based models that determine banks' profitability. 

2. Blockchain

With blockchain-based banking, banks can process payments at a faster pace and more importantly accurately. 

The use of blockchain can reduce transactional costs and lead to the development of new banking products and services that can lead to new lines of revenue. 

3. Cloud Technology

It will certainly make it easier for banks to respond to changing customers' requirements and scale their computing resources in tune with the customer's needs. 

4. Mobile Banking Technology 

With more developments in mobile technology, customers will gravitate towards their mobile phones to do banking transactions. 

Apart from the increased use of mobile wallets for making digital payments, there have been other developments in the form of mobile biometrics, PW payments, and voice-based searches. 

Last is robotic process automation for the banking sector. RP can simplify compliances by generating auditor reports automatically and maintaining details of the automated processes. 

RP, along with cognitive automation, can help banks deal with the problem of the future which is data overload. 

The impact of induction of technology on customers

For banking customers, technological addition would mean a reduction in bank visits, quick transactions, improved customer services, and fraud detection. 

Advanced technologies will take the BSSI sector to the greatest heights and bring a digital fundraising mission to this sector. We may see more investment in these technologies in coming years which will help banks, financial institutions, and customers. 

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