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The financial industry has seen the rise of disruptive trends and there are growing trends affecting how people make payments. These have resulted in easy ways to process payments and many service providers are struggling to keep up with the developing digital tools that simplify payment for clients. 

Digital payment options are paving the way for simplicity in making purchases and there are few trends to take note of that will surely transform how things work in 2020. 

1. The rise of Artificial Intelligence (AI)

The banking sector tends to lag behind in technological advancements or adopting new technology. The main reason for this is a security risk involved in the financial sector. The rise of AI means that financial institutions are now under pressure to catch up with other industries in adopting AI tools. 

The use of tools such as chatbots and robots allow for simplified mobile banking for customers and easy ways for institutions to pick up on fraudulent transactions. The rise of AI has seen innovations that allow for more automation in transactions and daily banking. AI has influenced the way people make payments by using automated processes to manage risks and making lending decisions. 

2. Cryptocurrency is more than a craze

Since its inception, Bitcoin and other cryptocurrencies have made an incredible impact on the financial industry. With easy ways available to get bitcoin and the development of blockchain, it has become easier for people to make payments while saving money and ensuring optimal security. 

One of the innovations that came to the attention of many financial institutions was the use of blockchain technology to create a decentralized currency that is usable in any part of the world. 

Blockchain technology has been seen as a simple way for financial institutions to eliminate manual processes of recording data. Blockchain will change how financial information is communicated and recorded. 

3. The increased use of data and analytics

In recent times, it has been noted that the financial sector is beginning to rely on big data and analytics to process transactions, withdrawals and calculating credit scores. Big data simplifies data processing to allow a company to access actionable insights. This allows financial institutions to operate in competitive environments by making informed decisions. 

Financial institutions are in a position to make decisions based on accurate data detailing consumer trends and market positioning to allow financial institutions to operate with less risk

4. Increased use of cloud computing

Cloud-based storage has become an optimal way to save time and effort of using hardware to store data. This means that computing in the industry to reach clients from anywhere and increase agility with an institution. 

The rise of cloud computing has resulted in financial institutions becoming more agile and able to incorporate services such as online payment, digital wallets, and electronic payments. 

5. Increased cybersecurity needs

With hackers becoming smarter in accessing client information, there is a pressing need for clients to minimize security breaches. Cyberattacks have become quite common in today's age and the financial industry has had to create hacker-proof systems. 

Security vulnerabilities can be dealt with using various techniques to ensure that clients are safe. This has resulted in using mobile apps to make payments, using a third-party app for an extra layer of security. Optimal safety is at top of mind for most clients making online payments. 

Conclusion

These trends are just the tip of the iceberg and allow for financial institutions to become more proactive in employing technology that simplifies making payments. With cybersecurity at the forefront of consumer concern, financial institutions need to make decisions that allow consumers to trust them with their information. 

Posted on Monday, January 6, 2020 2:40 PM | Back to top


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