Financial Technology also known as FinTech, is a rapidly growing field that has reshaped the financial industry. This industry is presently considered as one of the popular fields, mainly because the financial technology has the potential and can get huge changes in the way they lead business.
The increased adoption in mobile banking and other technological advancements, such as artificial intelligence and blockchain, cryptocurrency are examples of technologies aiming to make financial services more accessible to general public. AI is very important for financial services firm because their major goal is risk and fraud detection and cost reduction. The major areas for successful integration of AI services to enhance the user experience are payments and digital transactions.
The challenges faced by FinTech firms are often the strengths of traditional financial services firms, which is the reason collaboration is a big opportunity for FinTech firms and the other way around. Challenges such as cyber-attacks, absence of the human touch (often feel like they are dealing with some unknown thing) and regulations are faced by FinTech firms. FinTech firms and traditional financial services firms both have their own set of competitive advantages.
Even though the Fintech industry is growing for the last few years, there are number of difficulties fintech companies are yet to determine.
- Security challenges: The financial sector deals with sensitive information about various people and undertakings, with the rise of fintech, a plenty of information has turned out to be available in terms of digital formats, which makes it less demanding to analyse and generate insights, and yet likewise make the information progressively powerless to security ruptures.
- Regulatory Constraints: Fintech organizations are often unaware of which regulators and governing bodies they should follow rules exactly. This implies organizations are not even aware of the regulations that they should follow.
The success of fintech collaborations with bank is better for the organizations which can understand strength and weaknesses of each other to improve the customer experience and reduce the operational cost. The most important thing would be whether this collaboration will deliver good results in terms of safety, speed, ease of use etc.
Discussing challenges faced by Fintech firms and adoption of Fintech, our 2nd Edition MarketsandMarkets AI & Fintech Conference will take place on 16th – 17th May 2019 in San Francisco – CA, inviting professionals from the banking and financial sector, Fintech start-ups etc.
Keen on knowing more? Download the agenda for the upcoming 2nd Edition MarketsandMarkets AI & Fintech Conference.