With increasing digitalization in most of the industries, the banking and financial sector has undergone a digital transformation too. Most banks and non-banking institutions have competent websites that provide the facilities of net-banking, credit card application, loan application, etc. This major shift from the traditional financial approach of banking institutions to advanced digital financial services has revolutionized the ‘online banking; domain and is expected to bring significant changes in the next few years too.
The top upcoming digital transformation trends in the financial industry are-
Mobile apps like Google Pay, Paytm, PhonePe have seen a considerable rise in use in the Indian market. Such mobile payment apps have fairly eliminated the need to carry cash in your wallet. The popularity of these mobile wallets has seen more rise in recent years, especially after getting a push from the Indian government’s “Cashless India” initiative. This initiative aims to transform India into a digitally empowered country, with major emphasis on “cashless” financial transactions. With efforts towards this direction, the government has even launched its own digital payment mobile app, called as BHIM (Bharat Interface for Money). The response towards this digital transformation in financial industry has also been positive. Today, you would find most shops in India (or even streets vendors) who accept mobile payment. Such has been the shift that over the next few years, all monetary transactions in India are expected to be cashless.
Automated Wealth Management
Another major digital transformation trend to watch out for in the coming years is the role of bots in managing your finances. This trend can be credited to the large use of artificial intelligence (AI) in the financial service sector. Hence, one can be rest assured that the day is not far away when automated wealth managers will be making estimates such as best personal loan interest rates, investment prospects or general financial planning for you. This trend could subsequently benefit the customers by eliminating the need to pay for financial experts to manage their funds.
Infusion of Big Data
With the sizeable expansion of digital transformation in financial services, many financial pundits are predicting that big data is likely to play a key role in the financial sector in the coming years. The digitalization in banking transactions is expected to create a long trail of data that would require efficient machine learning tools for better consolidation. The infusion of big data would not only help better manage all the financial data but will also help considerably save money and time, ensuring better serviceability for customers.
The year 2018 was a letdown for blockchain in the financial sector. However, in the coming years, blockchain is expected to prove to be a major asset for digital financial practices. Several financial experts opine that the blockchain services, including bitcoins and cryptocurrencies, are likely to change the face of digital currencies in the coming years. The importance of blockchain models is further expected to be empathized for securing loan processing, escrow facilities, and digital payment facilities in the upcoming years.
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