Technology is dominating the modern-day service sector. The importance of technology in the working professional world is paramount, especially with everything going digital these days.
The use of technology in the financial sector has also been on the rise in recent times.
However, before we start talking about emerging technologies in modern-day financial services, let's understand what exactly a financial service is.
What is a financial service?
As the name suggests, financial service is a sector that primarily provides financial assistance to the masses.
In simpler terms, institutions like banks, lending houses, financial companies, etc. are all examples of financial services.
Financial services are considered to be the backbone of the economy.
Technologies used in the financial services sector
Here are some emerging technologies used in the financial services sector.
1. Hybrid Cloud Servers
A hybrid cloud is defined as an environment that is designed to store data, make calculations and provide services.
It comprises of public cloud, private cloud, and on-premises infrastructure.
Hybrid platforms are capable of providing institutions real-time data integration, customization and in-depth analysis of data.
Hybrid cloud technology helps financial institutions develop long-term or short-term flexible strategies that help in keeping up with the changing conditions of the financial environment scalably.
Blockchain is considered to be the future of a shared economy. Blockchain technology ensures safety and responsible product delivery and service.
Blockchain is a modern-day technology that scans all transactions in a reliable, cost-effective and verified way.
This technology boosts transparency and reduces human error drastically.
3. Artificial Intelligence
Artificial intelligence or AI is the literal future of the service industry.
The same is the case with the financial services sector. AI widely impacts certain sections of the financial services industry.
Some of these include back-office management, satisfactory customer experience, logistics, risk assessment and management and compliance.
AI provides banking institutions with a large amount of data from the past to take major financial decisions with precision.
Sorting these data histories effectively within the shortest amount of time is possible with the real-time application of AI technologies.
4. Robotic Process Automation
The introduction of the robotic process automation (RPA) has an important role to play when it comes to designing pre-decided rules of an application while dealing with data.
This usually helps in saving administrative costs and time.
RPA handles and simplifies the whole process of services by storing logs of processes and report generation with zero errors.
RPA helps in solving complex problems in a minimal period of time with literally zero human error.
It executes pre-programmed functions that help financial institutions in reducing time and cost.
5. Data Analytics
Having data is one thing, utilizing it effectively is another matter. Analyzing data to extract actionable insights is the basic role of data analytics in the financial sector.
Data analytics is the process of understanding accumulated data to devise strategies, to attain business insights, to detect fraud, or the development of a product in the most effective manner.
Data analytics also helps financial institutions to gauge their previous performances and plan a future strategy.
It also helps in scrutinizing tasks in hand and optimizes them along with other processes.
All aspects of life in the modern-day world have gone digital. This includes our financial services as well.
All customer-related data is quite sensitive in nature and is vulnerable to cyber-attacks.
Keeping this threat in mind, financial institutions constantly work to develop a strong cybersecurity net.
Their effectiveness ensures safety as well as compliance with regulations laid down for financial institutions.
7. Conversational User Interface and Chatbots
The conversational user interface is an automated program that is specifically designed to help users have a conversation with a service just how they would have a human conversation.
A user can ask a variety of questions about the service in a conversational manner and the interface replies accordingly.
This program has pre-programmed keywords in store which get triggered once customers ask a question whose answer is already stored in the program.
A major challenge is to gather information about common questions which a customer is likely to ask regarding any financial service.
Financial technology job trends in India
The number of jobs within this sector is growing drastically with every passing day. Here are the current job trends in India for some of these financial technologies.
1. Data Analytics
Data analytics is expected to take over the financial sector by storm in the near future.
More and more financial institutions have started banking upon this technology for efficiency in regular banking processes.
Data analytics promises a fruitful & well-paid career in the modern-day changing financial sector. A constant need for dynamic & efficient IT workforce is on the rise.
The role of cybersecurity in the evolving financial sector is paramount. Technology is rapidly growing, and so are the risks.
Considering this scenario, financial institutions constantly look out for a reliable & efficient workforce to increase cybersecurity.
Information security experts, security engineers, cybersecurity analysts & so on are in constant demand across the globe.
3. Robotic Process Automation
Since Robotics is revolutionizing the financial sector, a wide network of automation processes are constantly being designed to reduce error within financial systems.
Improved automation requires constant innovation and research; this opens up career opportunities for IT professionals to find occupation within financial firms.
4. Artificial Intelligence
Artificial intelligence or AI is one of the most rapidly growing technologies. AI has found its way within financial institutions in a much shorter time than other relevant technologies.
As the demand for this technology grows, so does the demand for an efficient workforce.
Job openings relevant to AI technology are rapidly growing globally as well as in India.
The future of the financial sector in India is bright, thus opening doors for young professionals to seek a career in this domain.
Today the Indian financial market is safe, transparent and reliable. The constant evolution of technology within the financial sector has made financial institutions much safer for people to trust and invest in.
The financial sector is a pillar of the economy of a developing country like ours, thus the opportunity to be a part of this technological growth is immense, to say the least.
This is indeed the right time to be a part of a monumental change.
Best of luck!