The tandem evolution of global banking, finance, Fintech and AI means that banks will need to do more to survive in this digital age. The development of mobile technologies and the opportunities they offer in terms of financial growth and global reach have caused profound social change. Some banks already understand the requirements of being a part of this revolution and have now implemented Fintech and AI in their operations.
Banks that are still using a model based on physical distribution and paper will have to adapt to the realities of today’s digital world. For this to happen, banks also need to change their approach to recruitment and training so that employees may take advantage of coding, software and digital tools, which are today’s new core skills for the industry. If the board and bank executives lack the necessary technical background or knowledge, it is a clear sign that a shift their internal culture is also required. If the bank does not change its culture, it will not be digital.
The advantages realized by digital banks will translate into benefits for their customers. “The control, valuable insights, and accessibility offered by digital banking help people make informed decisions,” said Mr. Jean Chalopin, Chairman of Deltec International Group. “The algorithms to automate risk measurement, customer support, and fraud detection offer benefits to customers and help make banks more efficient. AI algorithms can help to reduce complex activities that previously took several days to only a few seconds.”
Businesses can also take advantage of Fintech to offer smart services. They can use data about their customers to get to know them and provide better services and products. AI can help analyze the financial habits of customers and give personalized services and advice. It is also easier to verify the authenticity of electronic files. For instance, a user can produce a digital fingerprint of a file and compare it with the file stored in the blockchain. If the fingerprints are identical, it means that the file has not been tampered with. This ease of verification allows users to conduct their tasks in real time and avoid delays.
In general, Fintech and AI promote faster and cheaper processing of transactions and less paperwork. The concerted technologies also ensure greater data integrity and transparency. However, that is not to say that these technologies currently do not have any challenges that must be overcome, including security and regulation. Exchange rates between fiat and digital assets should be more transparent as well.
We do not know what will happen in the future, but Fintech and AI have shown that they are poised for positive disruption in various industries, especially the finance and banking sectors.
Disclaimer: The author of this text, Robin Trehan, is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.