The digital transformation spares no sector, and the banking and financial world is no exception. Here is an overview of the main trends in the digitalization of the financial sector.
Artificial intelligence: from chatbots to stock price forecasting, AI is taking over the banking and finance sector
From the back office to the front office, AI concerns all banking and finance businesses. In retail banking, the general public is already used to interactions with chatbots and other voice bots, which play the role of virtual assistants. In the background, email analyzers are running at full speed to identify the degree of urgency of the requests received and pre-fill the response that will be made to the customer according to the type of problem encountered.
By analyzing and scoring all interactions between a customer and the bank, AI is also able to shed light on consumer habits and predict the chances of repaying a loan, for example.
Artificial Intelligence is also proving very useful for applications providing investment advice. Based on a questionnaire filled in by the client, and according to the client’s transaction history, the robot advisers can propose a portfolio compatible with the client’s risk profile and can make recommendations for financial products.
In the fight against fraud, AI is set to play an increasingly important role, both in online payments for individuals and in investment banking. By spotting anomalies, AI improves the automatic detection of fraud, from insider trading to simple human errors such as “fat finger”. In the financial markets, AI is finally proving to be a valuable asset for predicting stock prices. And many other applications are yet to be imagined, as the field of possibilities opened by artificial intelligence is so large!
Blockchain: an unprecedented rise in power for an in-depth transformation of processes
Not a day goes by without a new financial institution announcing that it is going to use Blockchain technology to transform a part of its business. Foreign exchange operations, asset management, trade finance, cross-border payments… It must be said that the possibilities offered by the Blockchain are dizzying.
This technology for storing and transmitting information offers a level of transparency and security never before possible, thanks to a mechanism of linked blocks. Each block keeps track of the previous transaction and links to the next block in chronological order. Information relating to transactions is guaranteed to be unalterable, thanks to the traceability offered by the blockchain.
Because it does not require any control body and because it allows decentralized exchanges, the blockchain makes it possible to free oneself from a large number of intermediaries. However, given the colossal sums of money involved, the smallest savings made on the markets can quickly represent huge sums.
According to a study by IHS Markit, revenues generated by projects using blockchain are expected to exceed 100 billion as early as 2024 in the financial sector, reaching 462 billion in 2030.
Gamification: a way to foster customer engagement and improve financial literacy
Gamification consists of making applications that are not usually fun, to encourage certain behaviors. By breaking the codes and making the financial world more accessible, gamification makes it possible to attract the younger generations, who are more interested in a “banking experience” than in banking services in the broad sense. Unlocking vouchers when a certain level of savings is reached, setting up a system of incentive points as soon as investments are made, acting on the financial education of customers through games… Gamification can take various forms and serve multiple purposes.
At Neuroprofiler, we believe that gamification is a great tool to help your clients better understand the financial products they invest in. This is why we have developed a fun e-learning platform, based on the principles of gamification, to democratize the world of investment for savers. As a reminder, European regulations require that individuals’ financial knowledge be assessed before financial products are sold to them. Thanks to EDUprofiler, you can increase the sale of your complex products by taking concrete action on the financial education of your customers, while respecting the regulations. Does this idea appeal to you? Ask for a demo!