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The digital experience has redefined the way customers respond and interact. A closer look into some of these trends allow insights into how data and technology that continue to shape and transform the Financial Services Industry.

Hyper-Personalized Experience

The relevance of understanding data and how to use that data to make it work to improve customer experience is of utmost importance.

Process automation, artificial intelligence, hyperautomation, and the like provide data-driven decisions and actionable insights and more importantly, enable hyper-personalized experiences in the financial services industry.

With process automation, specifically robotic process automation, financial institutions can improve the productivity, cycle time, accuracy, and scalability and user experience by automating rule-based repetitive tasks such as data syncing and reports generation. RPA can be further augmented with Artificial Intelligence.

A study by Accenture of some 33,000 banking customers found 54% want tools to help them monitor their budget and make real-time spending adjustments. Additionally, 41% are “very willing” to use computer-generated banking advice. (Builtin)

Financial technology, or FinTech, is revolutionizing and disrupting the finance sector, especially in the financial planning market, with the increasing demand for technological solutions such as robo-advisors. Robo-advisors use machine learning algorithms to process data to provide investment services, from investment planning to risk assessments.

For the robo-advisors segment, assets under management are expected to show an annual growth rate (CAGR 2021-2025) of 18.78% resulting in a projected total amount of US$2,842,101m by 2025. (Statista)

Decentralized Finance

Decentralized finance, also called DeFi, is transforming financial services as we know it. As opposed to centralized finance, decentralized finance is powered by blockchain technology. Every transaction is seamless, and data recorded is securely stored and accessible. Protocols such as smart contracts are in place to facilitate the verification and execution of agreements from insurance claims, borrowing, lending to trade clearing – instead of Intermediaries such as brokers, exchanges, or banks to facilitate on verifying or approving agreements and transactions.

According to DefiLlama, as of October 2021, the Total Value Locked (TVL) – a measure of transaction value – of DeFi has exceeded $200 billion, which has doubled since the end of June. (Crypto News Flash)

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