It is not surprising how technology caught up with finance and the way we handle our money. The use of new technology changed the face of economies around the world. It is responsible for the most significant transformations in financial history that caused a paradigm shift in traditional finance.

Henri Arslanian is a regular speaker known globally for his inputs on topics like FinTech and hedge funds. He also sits on several finances, academic, civil society, and FinTech related boards and advisory boards. Back in 2016, in a TEDx meet held in WanChai Hong Kong, he said that “FinTech is the innovative use of technology in the design and delivery of financial service.”

Do you know the latest buzz of Technology Innovations in Finance

Lot of technologies already exist and now those are being used in Fintech. It is the unbelievable, how they are now put to use, combined with other technologies like smartphones, etc. Know what innovations in FinTech services and in finance await you. 

Innovations In Finance

Artificial Intelligence

AI is not an innovation, and it was always there.. The growth of AI technology is, in general, hugely widening the financial boundaries, such as allowing businesses to solve tougher problems. Studies show that it can now converge datasets more significantly, widely, and with more complexity than ever before. Artificial Intelligence reduces the cost and saves time using all techniques derived from human intelligence.

Financial business nitty-gritties, which were handled manually or by standard institutions, like payroll, insurance, and securities, etc. are becoming automated. Thus Artificial Intelligence is now more prevalent as a service than a product. 

1. Smarter decision-making – AI technology helps gather error-free information for businesses by using machines, not humans. The sequential analysis of that data ensures the consequent review of the data, which means that fintech companies can make better and more informed decisions about the risks, on whether to lend, what the cost could be, and much more. 

2. Automated Financial assistants and customer support – AI is all about the “experience” against the features of a product. Surveys say that only a small percentage of the current generation has really been to the main branch of their actual bank. Similarly, the next generations will not see a “Bank” really! Well, atleast not a real one. One will be able to visit one using the laptops, iPads, and smartphones, which will fit in pockets and purse. 

Text messaging or chatbots will be used to provide highly personal data and interactive support, which can be further built in the form of financial assistants to assist with guidance and financial decisions such as buying or selling stock.

3. Predictive analytics — It uses large volumes of “data” to notice patterns and understand what will probably happen next. It, in effect, advises the business what to do to improve sales and make decisions in many other areas of business. Late payment, for example, is one of the biggest issues facing small businesses in the United Kingdom with the average time for a 72-day standing purchase order payable. Predictive analysis can look at a person’s credit history and provide guidance as to whether a customer is likely to pay on time and what steps might be taken to fix or avoid late payment.

AI will be valued more for its utility and how fast you can find solutions.

This short film was created by MMP Global in 2016 to highlight why professionals working in Financial Services need to be aware of AI, still holds truth in 2020: 


Blockchain helps crypto payment systems run by capturing and processing transaction data. The blockchain technology that is operated by tokens continues to drive creativity in the financial services sector. This provides an opportunity for speeding up and simplifying cross-border trade, ensuring greater transaction accuracy, improving digital identity management, and ensuring accountability in financial operations. 

Once the requirements embedded in them are fulfilled, transfers and deals are performed automatically by smart contracts. This support reduces the need for a middleman and contributes to cost savings. For a while, blockchain has been on the radar of the financial industry, but now it is set to explode. The platform is perfect for use as a security solution, not just for crypto-currency with several authentication points but also incorporated into each transaction. The multipoint authentication secures the transmitted information and produces detailed records any step of the way. For those looking to move large sums of money, this can be soothing.

Blockchain helps to save money. The technology helps make peer-to-peer transfers in a decentralized network, and fees are not charged by mediators. From monetary transactions to contract conversion, financial services companies will be making more extensive use of blockchain technology as adoption increases.

“You have to think of the blockchain as a new utility. It is a new utility network for moving value, moving assets.” – William Mougayar says, who is a 4x entrepreneur, venture advisor, and angel investor, who previously held senior positions at Hewlett-Packard and Cognizant.

By 2020, this technology will be more quickly accepted and its potential for its use in banking uncovered. Although Blockchain banking solutions still need testing, they can build trust-and transparency-based relationships between financial institutions and their customers. This technology can reduce transaction times and improve cash flow significantly. Although, this technology needs complete trust between organizations and willingness to share data to discover its most prominent advantages and strength. Many financial establishments are already to take up this challenge and make significant transformations in their cultures, stopping them from incorporating blockchain in their services.


Cryptocurrency is the digital currency based on technical standards of cryptography. The so-called digital money has already shown us several methods in which the fundamental functions of blockchain can be applied to improve existing systems and processes. In addition, it can already boast a large group of admirers. 2020 will see Libra transfers, an innovative Facebook crypto initiative which is expected to release in the coming years. Unlike other platforms such as Venmo or Apple Pay, it will be a Peer to Peer platform that allows secure mobile transactions of Libra coins but at little or no expense, and will not require any bank accounts or credit cards. 

Facebook plans to introduce a special digital wallet, Calibra, which is accessible through WhatsApp or Messenger. Already expected to enter the market in the near future is Venus, a transparent blockchain initiative by Binance, the world’s largest cryptocurrency exchange. The business worked with policymakers to prevent any environmental issues and concentrated on smaller unbanked economies areas.

1. Digital Wallet – Visiting a bank branch has today become a faint echo of the past. The future of fintech and banking can easily be named as smartphone apps. CACI claims that digital solutions’ reputation will continue to expand, and by 2024 the share of online users will reach 71 percent. 

The main factors driving this trend’s growth are the large-scale introduction of mobile technology in financial services, convenience, and general availability and lower rates. We will see a growing number of digital banks in 2020 and beyond, owing to the acceptance and knowledge of younger generations who are always on the go, when it comes to payments, clearing, and settlement; deposit, lending, and capital raising; insurance; investment management; and market support. Over the years, fintech has made breakthroughs in the area of payments, thanks to the global penetration of the smartphone and the internet. It’s understandable then that startups and big-techs like Alibaba, Revolut, and Paytm are harnessing this technological edge along the financial services’ value chain to provide agile, efficient, and differentiated experiences to the end-user. 

Non-bank entities are cooperating and competing with banks, either as technology service providers to banks or by directly providing retail electronic payment services like AliPay, PayPal, and Paytm.

Cloud Computing

Cloud Computing is a vast concept, and hence, I intend to cover it separately. However, I believe we should focus on: 

How does the Financial Industry benefit from Cloud Computing

1. Storage and Big Data:

Max space and storage are among the most significant rewards of cloud technology. Due to loads of card transactions, stock market transfers, loans, and insurance reports, the finance industry’s activities generate colossal amounts of data on any given day. Unlike the typical IT system, which requires frequent updates and maintenance, cloud computing provides unlimited storage to ensure businesses they don’t need to worry about such volumes of data.  

2. Compliance:

Cloud providers take very restrictive precautions to ensure that no compliances are violated by either party. Compliance bodies work for monitoring purposes with several prominent cloud vendors. Financial companies should make a point of exploring minute details before signing up with any vendor.

3. Mobility:

Cloud computing allows employees to work while on the go. Employees can use their smartphones and tablets to track and analyze everything in real-time. Example- access client communications, proprietary business applications, and CRM tools when out of the office or outside business hours, etc.

As per a survey conducted by Finextra Research, 83% of respondents said their bank’s existing technology could no longer support its needs. Additionally, nearly 90% are in favor of including SaaS or cloud-based services as part of the new infrastructure.

4. Cost-Effectiveness and Cost optimization: 

The cloud is storming the world of technology and all industries. The finance industry, in particular, should not delay their advance either.

This may not be a priority for this industry, but one definitely should not complain about the collateral benefits that come with the cloud technology bundle. Clouds will help decrease server and data center costs and also other crucial IT services. This removes the total cost of running and maintaining the infrastructure.

Vernacular and Voice Service: 

Natural Language Processing is continuously evolving, and today, it can be difficult to tell for sure whether one is interacting with a robot or a real person. However, it will now be able to open, deposit, or transfer funds by voice easily. It will not be a fad anymore. Many financial organisations will see this technology incorporated as one of the best ways to build customer loyalty in digital banking.

1. Chatbots:

According to Gartner, by 2020, chatbots will interact with the customers of 85% of banks and businesses. By eliminating human involvement in these substitutions, productivity, and speed will improve. According to a study, financial chatbots save over four minutes oof all financial firms interactions to be chatted. Customers can also expect to enjoy the following features provided by chatbots: 24-hour service,  . Customers appreciate the speed at this point, and so does Fintech. Business

2. 5G Network Services: 

As an agent of change of numerous technology innovations and developments such as the Internet of Things (IoT), machine learning, between urban and rural communities, and facilitate higher initiatives in smart infrastructure.

For many reasons, 5G, the fifth-generation of wi-fi engineering, is a radical innovation, but it is mostly due to its tremendous speed. Due to the increase of connected devices, the market for high-quality Internet connection has become very high. 5th generation mobile networking is the solution to community needs.

Consumers, businesses, and individuals alike, who gradually accept 5G, are expected to benefit significantly from the speed it provides and the wide range of applications it allows.

3. Internet of Things: 

A stable Internet connection everywhere will enable, successful incorporation of new technologies into financial services. For starters, voice assistants can provide more comprehensive and precise feedback in real-time, and guarantees a smooth flow communication with data security, with improved biometrics. In recent years it has also become particularly relevant to the financial industry. It can also ensure a smooth flow of interaction with confidentiality and enhanced biometrics. In recent times it has now become particularly exciting to the financial sector.

Take a look at the unbelievable technology we will be able to attain with the help of

4. Robotic Process Automation – Robotic process Automation (RPA) is the combination of capabilities such as social and emotional intelligence, natural language processing, logical reasoning, identification of patterns and self-supervised learning, physical sensors, mobility, navigation, and more. Banks and financial services are looking far beyond replacing the bank teller. 

This use of robotics and AI will address key pressure points, reduce costs, and mitigate risks. 

Fintech automation is generally applied to current processes, leading to the reorganization of old systems and a considerable decrease in cost for the stakeholders. One of the significant benefits of RPA is that since it is not a point solution, it applies to any policy-based, uncomplicated, and organized tasks, even FinTech related problems.

Financial institutions are in the initial phases of implementing RPA, but it is undoubtedly one of the biggest fintech future trends of 2020 and beyond. It replicates user actions to reduce or eliminate human intervention in mundane, repetitive, and manually intensive processes. By automating these manual processes, financial institutions can improve efficiency and accuracy.

5. Cyber Security:

“Cyber criminals are becoming more industrialized and more organized,” explains Derk Fischer, a partner with PwC in Germany responsible for the delivery of cyber security assessment and consulting services­. “What we’re seeing is the emergence of a new kind of ‘industry sector’ that thrives on the complex connectivity that characterizes the Internet.”

If there is something that needs cyber security the most, it is FinTech. Because of the sensitive information that is linked to the cloud and related services, it is most prone to virus attacks. There is no reason to presume that when accepting any new technology, particularly cloud-based offerings, security is the prime concern.

Here is a link to the 2020 latest threat report. 

How can we defend ourselves against an attack

Accenture’s team has found that companies that have an edge when it comes to defending themselves in cyberspace prioritize moving fast. In an interesting article by blogger Mark Jones he says that “Automation is ‘not a quick, fix-all solution,’ says the Ponemon Institute. Cybersecurity needs humans.” 

Read all about why You can’t automate the entire cybersecurity system – yet

I have specifically covered the most Relevant and Latest information I came across while I studied the topic. 2020 looks like an exciting year as these technologies will take the lead in Fintech . Prepare yourself to be amazed and embrace the future.

Ajit offers his Creative Service as a seasoned Copywriter and an experienced Content Writer. He has done everything from the BPO to distributing flyers of events. After finishing his professional certificate course in Creative Writing from Mudra Institute of Communications Ahmedabad (MICA) he worked with eminent ad agencies like Law & Kenneth and Leo Burnett Mumbai. He has had the opportunity to work with International Clients and other big accounts. As a Freelance Content Writer he has worked for Production houses like Ghungroo Films & Entertainment and 3 Men Films (3MF). Ajit has exposure to how a brief comes to life and meet its final marketing objectives. He loves the attention to detail and is a very exciting person to work with.
His work reflects hands-on ad agency experience. His writing is simple to understand as he fancies to use simple words instead of using words that are fancy and complex. He assures The Media Bulletin of Original Content that is Catchy, Unique and Engaging. He also loves music, food and travel.

Posted in FinTech By Ajit John   Date March 17, 2020

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