Fintech Is Seeing Growth In These 3 Areas
Big data and analytics are changing the landscape for many industries, banking included. Advances in machine learning, blockchain and big data are providing an advantage to the financial organizations that are able to take advantage of these opportunities. Banks, for example, can capture customer data through loyalty cards, social networks and the purchasing or browsing habits of consumers. Fintech can support banks in several ways and, as such, is experiencing growth in three key areas.
The connection between finance and technology, fintech, is strengthening. As noted in “Here’s where fintech is heading next,” posted by Bob Pisani on CNBC.com, a report by Citigroup indicates that private investment in fintech has grown from $1.8 billion in 2010 to $19 billion in 2015. Certainly many start-ups are giving established banks a run for their money, but big banks aren’t about to give up. Pisani suggests that fintech is providing financial institutions with a more efficient way to manage and improve customer relationships and is helping to cut costs in today’s slow economy.
3 Ways Fintech is Supporting Startups and Established Financial Institutions
- Mobile money: The ability to move money without stepping in a bank or talking to a representative is important to today’s consumers. The reliance on mobile banking and payment processes is increasing, likely due in part by continued reliance on mobile devices.
- Lending: consumer and small-business lending is also growing, but is limited by funding capacity issues.
- Personal finance management: Startups and established banks are both investing in robo-advisors, making it easier for people to manage finances without speaking to a human advisor. Not everyone trusts technology, however, and human advisors will likely remain very relevant to certain investors.
Many financial institutions are embracing technology as an efficient way to improve internal operations and engage customers in new ways. An enterprise resource planning (ERP) solution can support core business tasks including financial and accounting processes, analytics, and human capital support and logistics. A customer relationship management (CRM) solution can provide valuable insights into customer needs, preferences and risk tolerance. Together, these management solutions can improve productivity, profitability and customer satisfaction in this digital era. Contact AKA Enterprise Solutions for more information about upgrading your existing technology with ERP and CRM