Technology rapid changes are having a big impact on financial products, and it is important for those in the financial service industry to gain accurate guidance on technological advancements and wellness solutions. For instance, banks and large financial institutions have been creating better software since the beginning of the financial crisis in 2008 to help track and manage people’s personal finances.
This type of cutting-edge software created, can analyze the financial profile of any individual and use this technology to assess credit worthiness, track spending or help with savings and budget. This allows users as well as financial institutions to gain insight on their finances and better plan for their future. These are services that more institutions are offering via tech platforms. Another technology trend widely adopted in the financial field, is data analytics and artificial intelligence, as these gain data about insights and other bank activities with more accuracy. Examples of this trend include how some banks use data insights to make ATM reloading, better-ensuring customers spend less time at the ATM, and how banks can recognize the customers’ use of financial services to better personalize product recommendations.
Artificial intelligence offers another technological trend because it enhances each client’s interactions in their banking experience with chatbots. Banking chatbots provide loan terms that are much better thanks to risk assessments that are driven by data and make the long back-end processes automated and easier. The technological trend of artificial intelligence has made it so that banks have many benefits, including quality improvements, savings in cost, more product offerings, expansion of services, and financial wellness of consumers. There are concerns in this technological trend regarding the bias that can happen with artificial intelligence algorithms, but this concern is not as great when the focus of this trend is on improving the wellness of each individual customer over automatic transactions.
Another growing and promising application of robotics is in the financial sector. This is often known as Robo-advisory services Robo-Investment uses computer algorithms, complex math formulas and sophisticated software to manage investment for users. Services can vary from automatic investment, portfolio management and tax services. Robo-advisor typically require very limited human interaction, are quick to set up and have low or no minimum investment requirement.
The last technological trend that we are excited about is wearables, a blanket term used for any device that can be worn on the body as a part of the material used in clothing or as an accessory. Wearable technology is starting to be a great solution for managing payments that involve insurance underwriting because the application of underwriting insurance interacts with wellness in a way that directly involves insurance and physical well-being. Wearables are beneficial to any financial package because they address clients’ protection needs and their physical health. More importantly, wearables are becoming cost effective ways to track health data (body movement, heart rate, sleep pattern, and calories consumptions) which will ultimately improve patient and doctor relations. This will provide actionable data to boost wellness and longevity in a timely manner.