The financial sector adapting to the new trends
Introduction.
Currently and some years ago technology has begun to have a strong impact on the financial sector. After that, the European Central Bank has decided. This has been able to find out how their investments have increased with respect to new technologies thanks to startups, which are the provision of services by third parties together with the development of the new horizontal units within the banks themselves.
To supervise everything, he has opted for 3 technologies:
- The first focuses on artificial intelligence dedicated to granting loans. In addition, the ECB determines the different risks that it wants to supervise how the management and the possibility of saving third -party data.
- The second is the robbery-advisors that focuses on automatic advice services, that is, in supervising the development and implementation of models based on these.
- Finally, the third focuses on cloud projects and businesses, which is more risky. On the other hand, the entities will try to ensure that they can review their agreements with said technological suppliers and if necessary to be able to take care of them in addition to being able to review what this implies regarding the confidentiality of customer data.
But not everything is risky, since the financial sector will give the opportunity to improve customer experience and reduce costs.
With regard to the opportunities they offer, we can observe that they are transforming the financial sector:
1. Fintech PWC says they will have great power worldwide the new financial and technological firms, since it is very demanded.
two. Collaborative economy Although in the future citizens will continue to use the services that financial institutions provide, it is no longer physical, since there will be changes in the way of investing and those who need financing will have it easier.
3. Blockchain is the basis of cryptocurrencies. It has two advantages: o The possibility of reducing the cost of the infrastructures and internal platforms of the banks.
4. Robotization and artificial intelligence. PWC compares the impact of implanting robotics and artificial intelligence technologies with the arrival of ATMs to banking.
5. Cloud. It is used to store business processes that are not part of its main activity.
6. Cybersecurity and the Internet of Things. It is a concern, since it has grown very fast especially in payments, insurance and commercial banking.
7. Asia, center of innovation. As China knows it is the largest on loans between individuals and has the largest number of mobile phone users, in addition to being the world leader in research and development.
8. Customer intelligence. The Big Data is the center with which the world will be controlled. This will mean a great opportunity for financial institutions to know what their clients want.
9. Technological regulators. They will also be part of the technological revolution, since they will integrate tools for data collection and analysis to know more accurately about a financial entity and thus be able to anticipate the problems.
10. The digitalization of everything. It is something already real that embarks from customer experience to operational efficiency;From the means of payment, through the management of assets, insurance and capital markets as an example of the scope of digitalization.
Some of the financial institutions that we will explain below are exploring the possibilities that allow all this when making transactions safely, reliable and irreversible without being necessary an intermediary.
Examples such as Santander that analyzes its potential uses of this technology to improve in efficiency, safety and performance of the Bank infrastructure especially with respect to international payments, capital markets, regulation, compliance and audit. BBVA addresses the first projects carrying out different pilots with different companies such as an international trade transaction between Europe and Latin America.
Bankia On the contrary has created a laboratory in its entity in order to invest in startups and companies that are starting in exchange for participating in the business. CaixaBank has participated in a telephone broadcast in Germany through the new technology. These entities are developing products on blockchain because it allows to develop common applications for all entities and thus be able to share the distributed record systems. This allows to reduce costs and give faster.
Conclusions.
But not everything is said regarding the new findings, since there are other fields that affect;as is the case with the role of people in the entities. These people can now focus on design and solve problems while the most repetitive tasks will be carried out by machines. As we know the bank is necessary, but the banks are not why they are in danger due to the competitive impact of large technological ones such as Fintech, since they have gradually progress with what it leads to loans, insurance, payments, paymentsamong others.
Some are covering their backs as is the case of Apple creating their own credit card as a payment option. Others such as Google choose to obtain a license to issue and exchange electronic money and thus provide payment services, since with the issue of the European Union of the United Kingdom and Brexit it was not known if they could continue offering their services to their services to theirUsers.
Others, as Facebook already have a license to be able to send and receive money between contacts using Facebook Messenger as a tool in addition to working on their own cryptocurrency for some of their applications such as WhatsApp.
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