Maslow’s hierarchy of needs dictates that after a person’s physiological needs are met, they prioritize personal, emotional, financial safety, and security before anything else less critical for survival.
“Ignoring technological change in a financial system based upon technology is like a mouse starving to death because someone moved their cheese.”– Chris Skinner
Fintech, which technology describes as developing and distributing financial products and services, is one of the most involved innovation areas in startups. A rich area of research is the relation between technology and innovation.
Information technology is commonly recognised as an essential component of internal process optimization, as well as new product creation and new service creation. The question is what is Fintech?
Fintech is defined as design and delivery of financial products and services through technology.
Industry surveys suggest that novel fintech offerings may be particularly appealing to young, high-income, high-value customers. As time passed and new security measures were introduced, the finance industry began transforming itself into what is called fintech.
Read: How to Digitalize Traditional Business Practices?
Fintech Cybersecurity and Stability
Undoubtedly, the digitization of financial services may be of interest to most customers because the technology was not considered to be 100 percent effective. The risks most people were preoccupied with were identity fraud and money laundering. In 2020, more fintech firms will be taught how to secure their business operations and survive a cyber attack.
Fintech in Big Data
Fintech companies used unstructured, structured data known as big data for customer segment detection, fraud detection and risk management. In Fintech, big data can be used to spot fraudsters more quickly than a human eye can. The collected big data is analyzed to classify consumers’ usual purchasing behaviors and behaviours. Fintech firms will also be able to use big data to identify consumers and give them more customized deals.
Fintech in AI
The AI-powered systems being introduced help to reduce banks’ and other financial institutions’ operating costs. Experts will be among the most common factors to expect to see the relationship between AI and fintech grow stronger by 2020. Fintech traditional stacks weren’t efficient in real-time scenarios. However, what else one can have a stack that can adapt to customer requirements in real time? AI & machine learning is proving very successful when processing data streams in real time. It can also improve customer interactions and reduce risk.
Fintech in Banking
Fintech equips the banking sector with tools that make it more efficient than ever before. Banking institutions use technologies such as chatbots to improve customer service, mobile applications to provide consumers with real-time insights into their bank accounts, and machine learning for fraud prevention.
Fintech-Next Generation Privacy
SecureKey is a leading provider of identity and authentication which simplifies the access of consumers to online services and applications. SecureKey’s next-generation privacy-enhancing services empower consumers to easily and privately claim identity information using trusted providers, such as banks, telecom companies, and governments, helping them connect with a digital credential they already have and trust to essential online services while ensuring that information is only ever shared with specific user’s permission.
“People are tired of having so many passwords.”
-Greg Wolfond
