DIGITAL DISRUPTION IN THE FINANCIAL SECTOR
Disruption means an obstacle in the path which can change everything or the traditional way of doing something. Sometimes these disruptions are good.
Digital technology creates disruptions, which proves a boon because it changes everything in the financial sector.
What is a Digital Disruption in the Financial Sector?
The involvement of technology in the traditional financial sector is considered a digital disruption in the financial sector, which include computers and the internet. Also, nowadays specific IT industry is developed, which is purely involved in developing online and offline solutions for the financial sector.
Why is digital disruption proving a boon for the financial sector?
Remember the old days of banking experience, without computers and the internet. For even a single transaction like opening an account, knowing the balance, submitting and withdrawing money and cheque, one was required to visit a specific branch physically, which was very time-consuming and hectic. So, the majority of people believe in cash transactions and avoid banking.
Today, digital disruptors are changing the traditional work ethics of the financial sector in a new innovative way, like online transaction solutions, landing, credit, etc.
Let’s divide the disruption category-wise:
Fintech means those companies which deal in the financial sector with technology. These offers:
- Real-Time Transactions
- Mobile And Internet Banking
- Credit and Pay Later Cards
- Instant Loan Apps
And the most important one does not need to visit any branch or office for these all. One can get these facilities by applying online.
Nowadays, banks are also offering Digital platforms, like mobile banking, wallets, and payment apps to attract clients with the help of automation systems and cutting-edge software solutions.
Cryptocurrencies are now considered future replacements for the current cash or currency system. No need to print, land gold, or distribution, just mining the currency, and the best part is that no one can steal anyone’s cryptocurrency due to its mechanism.
Almost half of the finance sector approved cryptocurrency replacement for real currency.
AI and Machine Learning
Today the first contact person of any financial institute is a Chatbots or automated service assistant to resolve any query online. This facility saves lots of time, and one does not need to visit the branch physically.
AI in the financial industry offers better customer experience, fast product delivery, excellent risk management, and innovative technologies such as self-learning, Machine learning, cloud computing, etc.
AI tools are algorithms and computing-based, so these can give an error-free environment.
Data Mining and Management
A customer, bank, NBFC, or any other financial organization like the Income-tax department can access all the data collected per their authorized permission. And use it for further requirements like developing new solutions, decision making, designing market strategy, or accessing personal information.
Additional Features of Digital Disruption
- Risk analysis and management
- Improvised security
- More client base
- Increase customer satisfaction
- New online services like salary management tools
- A single user can access, manages, and control the facilities, like Demat account open or close, payment transfer, etc.
In a nutshell, digital disruption changes all aspects of the financial sector with the help of Artificial Intelligence. The services including AI enable customer services, virtual personal assistants, AI modules enable self-service or banking, new online processes, etc. It makes the financial sector easy for the ordinary person and attracts them.