The most significant bottleneck for the financial services industry is the ability to process and understand a massive volume of transactional data. Before the development of deep learning neural networks and artificial intelligence, providers relied on the human understanding of statistics and intuition to create the potential for wealth building success.
According to Deltec Bank, the Bahamas – “Fintech innovations through AI make it a more straightforward process to understand what exists in the generated data to create more reliable outcomes.” It works to streamline the information streams to reduce mistakes, find new opportunities, and help wealth grow in ways that never existed in the past.
Deep learning diminishes the amount of human effort needed to process all of the applicable data while lessening output error rates. That means a sequence of benefits becomes accessible to the financial services industry when it espouses this technology.
List of the Benefits that Fintech Provides
We see the various benefits that fintech contributes to the financial services industry every day, even if we do not recognize what happens. Massive innovations are happening that transform the way we conduct business with each other, and the advantages are moving forward at a rapid pace.
1. Fraud prevention reduces enterprise expenses.
Fintech makes it significantly more difficult for scammers or thieves to conceal their activities. That means fewer fraudulent transactions take place in the financial services industry, reducing the number of losses that occur. Every $1 of fraud loss creates $3.25 in supplementary costs related to the transaction’s face value for which liability exists, along with interest, fees, and investigation costs.
2. It helps with employee handling requirements.
Organizations in the financial services industry can handle a significant number of workers through the automation of payroll and human resources functions. Fintech innovations make it a simple task to integrate these needs into the daily operations of any business. That means fewer specialists are required in this area, shifting where human capital focuses their talent. This benefit usually leads to more research and development within the sector.
3. Fintech speeds up the approval rate.
The new technologies that the fintech sector contributes to the financial services industry speed up the approval procedures needed for new accounts and services. It is an advantage that can turn prospects into customers at a rate that is up to five times faster than the traditional process. Most transactions can now get completed in 24 hours, with some products available in less than a minute.
4. It offers a personalized service opportunity.
Customers are more likely to use explicit financial service providers when there is a significant degree of customization obtainable. Fintech makes this benefit possible. The massive volume of data that gets generated through each B2C interaction makes it more manageable to offer specialized products that improve an individual’s monetary wellbeing.
This set of benefits provided by fintech to the financial services industry leads to an environment that focuses on consumer convenience. Mobile connectivity is at the core of most behaviors today, which means tapping into these processes makes it easier to grow wealth. Customers and businesses are both a couple of clicks away from completing transactions because of these structures, and that means we all have more opportunities to find success.
Disclaimer: The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.