How is digital revolutionizing the world of finance?

Technology is changing the way businesses operate. We have alarms that detect toxic substances in the air, medical equipment that can detect life-threatening conditions before they become a problem, or smarter computer software to make controlling essential equipment easier than ever.

One industry that has seen significant innovation in recent years is the use of technology in the financial world.

Changes in customer service :

Customer service is perhaps the most effective way in which digital is disrupting the financial and banking sector.

In the past, a good customer service team was essential for any business involved in the financial sector.
Anything that involved dealing with money or financial problems required qualified staff to be able to solve problems and help people.

However, chatbots are fast becoming the standard with which customers interact.

Artificial intelligence that evolves and becomes smarter is a good thing on paper. But in theory, it lacks both human contact and leaves many people wanting more.

Why pay a member of staff when a machine will run more cheaply?

Online banking :

Banking was traditionally carried out in the non-virtual world.
People went to their bank to withdraw money, transfer funds from one place to another and pay their bills.

However, these types of premises quickly become redundant. Online banking is becoming increasingly sophisticated on a daily basis: we can transfer money or pay for goods at the touch of a button.

We live in an age where we can access our bank accounts via phones, computers and tablets.

This is the kind of innovation that is disrupting the banking industry, and is having one of the biggest impacts on the sector and consumers.

Fraud detection :

Investigating and identifying fraud was an equal effort of man and machine. The system helped track potential fraudulent transactions, but it was up to trained personnel to detect fraud.

However, AI is outstripping the capabilities of its designers, and is now beginning to be able to detect and identify fraud.

The machine can track the victim’s history, then calculate and predict the probability of fraud based on previous patterns.

All this can be done at a speed far greater than that of a human. This means that a large number of anti-fraud teams need not be as large as they are, and can be reduced to a small handful of individuals.