Future Innovations in The Financial Industry
Innovation is a source of creating something unique and useful. Innovation has its importance in every scenario. Future innovations in the financial industry are yet another way of implementing something unique.
In recent years, the finance industry had gone through some drastic changes. However, these changes may include some new payment techniques and an interesting aspect of capital markets and investment management. In this case, the finance industry is the backbone of the economy. Moreover, it forms a correlation between revenue & expenditure.
The biggest innovations in the financial industry can be seen in these five departments:
- Primary market
- Payments
- Capital Market
- Investment Management
- Insurance
- Primary markets: This includes the advancement in exchange of securities and collecting debt with the help of future innovations in the financial industry
- Payments: The most useful tool of all time is the ease of online payments. Earlier, people find banks to transfer money, but now it is just a click away.
- Capital Markets: Companies find it easy to sell their shares through online portals, and for customers, buying shares has also become convenient.
- Insurance: Want to purchase health insurance? Need to visit a corporate office? Thanks to the innovations in the financial industry, moreover now you can get insurance of all types using your phone in just a few minutes.
The most visible innovation is platform-based, data-intensive & capital lights. However, future innovation in the finance industry is both deliberate & predictable. It opens up light into the number of alternate futures.
The Future of Financial Services
Rapidly advancing technology, which evolves customer expectation and a change in the regulatory landscape, is a call to open the door to disruptive innovation in financial services. Considering every aspect like cryptocurrency, big data, etc. financial services are making a way in every possible aspect.
The Top Competitive Technology-Driven Influences
- Financial Technology will drive the new business model
- New technology-based companies focus more on computer-based technology or processes involving everything from insurance to mobile payments. However, this process is somehow effecting the financial value chain directly.
- The sharing economy embedded in part of the financial system
- Today, people need banking services, but they don’t need turn to a bank to get them. In this case, the sharing economy is focused on using information technology to find a match between the services.
- Effects of Blockchain
- Many IT companies have come together to find the solution of higher technology and applying it to real finance scenarios. We can expect this innovation to move from retail-based to more industry-based. Moreover, this could be the future innovation in the financial industry.
- Digital becomes Mainstream
- Years back, financial institutions used to build e-business units to ride a wave of e-business or online business interest. However, in the current situation, that ‘e’ went away. Today digital companies have the same market.
- Customer intelligence as the key predictor
- Customer intelligence is based on surveys and predictions. Now, technology innovation in the financial industry has led to more data collection and has developed another way of data prediction.
