Tuesday 17 January 2017

Tech Is The Future Of Financial Services



Expanding operations of many "Fintech" firms signify the need for banks to step up their technologies to meet the immense demand of tech in financial services. Widespread automation and sectorial consolidation could also mean thousands of jobs lost to technology.



According to ING Chief Executive Ralph Hamers, employment in finance could decrease and financial industry workers may need to find work in other arenas that could play by their strengths. ING's latest plans include technological advancements that guarantee laying of 7,000 from the 54,000 staff of the Dutch bank.

Profitability has been questionable for many banks -- both local and multinational -- and automation is a great avenue to make convenience a selling factor for consumers. European banks are likely to implement Fintech as they try to reduce expenses by boosting profitability through technological efficiency.

Hamers said finance firms are looking to use cloud technologies, AI and voice recognition to make financial services swifter and less intimidating for other users. Total investments for financial technologies worldwide has reached up to $1,200bn with Europe and North America leading in the development of such technologies according to data from Accenture. EU banks may need to wait out the storm for a little bit more as new EU regulations may or may not allow third parties to access customer information despite authorisation from the latter.