The entire world is progressing quickly, and this includes finance. New technologies are constantly being developed to make processes simpler and faster. But what new financial technologies could you soon see speeding up your financial transactions? We’ve come up with a few below.
Artificial intelligence (AI) is always in the news, impinging on almost every walk of life. And it’s going to be exceptionally important in the financial sector moving forwards. One way it’ll speed up transactions is by automating many tasks currently performed by humans – and doing the tasks in a far quicker and more efficient manner. In turn, this enables humans to be freed up for more important jobs, which only improves the entire banking experience further.
AI will also significantly improve the speed of fraud prevention, identifying suspicious behaviours quickly and negating the need for manual reviews of transactions. This will be particularly important for businesses that accept crypto payments.
Traditional banking has several limitations, and many of these can be solved using open banking. This allows banks and fintech providers to share data simply, which in turn allows for a more efficient system – something that will, again, speed up transaction speeds. The increase in speed comes as banks won’t need to wait an age to receive important information from other institutions, instead relying on almost instant sharing of data.
Incidentally, open banking will also make for a much more transparent financial system, allowing users to view their financial information easily across a variety of providers. This will also make financial management a far simpler process.
Next up, we come to embedded finance – another hot topic in the financial world currently. The way it works is this: it integrates financial services with platforms that aren’t finance-based. By integrating these services, it allows businesses to offer services directly through their apps and other platforms. For example, a superstore could offer the facility to apply and receive an instant loan, allowing you to quickly and easily purchase a big-ticket item that you couldn’t previously afford.
Once again, this piece of financial technology takes away the hassle from transactions. Customers will instead find a streamlined experience, speeding up the entire process. The integrated APIs could also allow businesses to easily begin to accept crypto payments, again upping convenience for many.
Financial regulations have also been a huge hurdle in the quest for faster transactions, sometimes holding up payments by hours, or even days. But RegTech – which stands for Regulatory Technology – simplifies the process of financial regulation by automating tasks surrounding compliance.
The tech monitors all transactions and can pick up signs of regulatory breaches, which can be especially useful for businesses that accept crypto payments. And this automation means no manual checks and therefore a much faster process.