How the FinTech industry is challenging the traditional finance sector. Using technologically sophisticated methods and a client-focused approach.
A lot is happening in the world of finance right now. Everywhere you turn, there are new technologies being developed. The rate at which industry is evolving is faster than many companies can keep up with.
One of the biggest trends we’ve seen so far is FinTech startups driving the new business model and flipping the traditional industry on its head. For firms looking to digitise and keep up with new market challengers, there has never been a more crucial time to partner with a financial services marketing agency. And when it comes to staying ahead of the curve, it’s important to keep an eye on the latest trends in tech. An agile business needs to have their fingers on the pulse.
Here’s what we could be seeing in the next wave of breakout financial technology:
1. Investment in Artificial Intelligence (AI)
Big advances in robotics and AI will take hold of the financial services sector over this decade, disrupting the way businesses work and connect with their clients. AI is an area of computer science that emphasises the creation of intelligent machines that work and react like humans.
What we’ll see with small FinTech outfits is the use of alternative solutions. Businesses in the process of scaling, who don’t have enough in-house resources to create their own AI innovations, will work with reputable tech partners.
Here are some of the ways AI financial technology will change processes:
Improved business analytics
AI allows financial services companies to gain critical insight into their performance, as well as information about their clients and the way they behave.
Better risk management
By leveraging robotic technology, firms can analyse trends in the market, identifying possible threats before they arise and reducing the level of business risk.
Not only will AI help the finance sector get a better understanding of clients, but the technology can also help organisations and their workforces build better strategies for client retention.
2. Voice search
As Industry 4.0 rolls out, the trend towards automation and data exchange, more connected devices will fill our homes and businesses, making the need for voice even greater. It is estimated that there will be billions of devices in the next few years, as an increasing number of people use their smart speakers and other devices to access the internet. The keyboard will be used less with search facilities.
According to some voice search statistics, by 2020, 50% of all searches will be voice based. That means that SEO and content marketing techniques will need to be updated to include more conversation key phrases. Natural language processing will be honed, opening up new opportunities for marketing in a number of new ways.
Chatbots are a great example of how interaction is already changing the way we communicate with brands. We could see a growth of voice-activated chatbots to service people using these devices and wanting to contact customer service teams that way.
If you want to make sure your content marketing is up to date, and able to handle the advancements in future technology, partner with a financial services marketing agency that can make your strategy easily scalable.
3. Wearable payments
Wearable technology is definitely the next big thing in terms of payments, with a number of people already paying for things at shops and restaurants with smartwatches. Although technology may never replace physical currency, the shift in the industry is heading that way. A large percentage of people already pay via contactless and rarely ever withdraw cash for their everyday needs.
Paying with a tap of watch or bracelet is the next step. This can evolve into clothing and other accessories, reshaping the payment landscape and making it much more convenient for people to multitask and go hands-free at checkout.
In the space of a year, we have seen wearable payment transactions increasing eightfold, with Amsterdam leading the way in this new concept. From a marketing perspective, as this trend develops further across Europe and the rest of the world, businesses will have to build strategies for a range of devices.
Traditional marketing channels may need to adapt, and marketers will need to focus on creating a seamless experience for wearers. Content that displays poorly on wearable devices could lead to lost opportunities.
5. Robo advice
We know that robo advice is here to stay, the process of automatically selecting investments and building a diversified portfolio. Once the funds are invested, on an ongoing basis the software automatically makes changes to the investments to align the clients portfolio back to a target allocation. But who is actually using it? There has been much debate and discussion about user demographics, both those of today and those in the future.
While it is easy to speculate that it must be the digital-savvy generations and those comfortable with online transacting, it would be foolish to ignore huge swathes of the population as potential non-users – whether they be baby boomers reaching retirement age or the already retired – looking for urgent help and solutions.
The financial services sector should avoid myopia when it comes to defining one target group for robo-advice. Low-hanging fruit is close at hand with those approaching retirement and in the earlier stages of retirement. Digital advice is increasingly attractive to these groups, whether they are high net worth individuals or lower net worth individuals normally overlooked by the traditional financial adviser.
Want to talk to digital marketing for the finance, technology and professional services sectors?
For financial businesses to succeed in the coming years, it will be important to divert marketing towards the younger audience. These will be the ones who have a dependence on technology, and therefore the experience across any device or platform must be seamless.
To find out more about building your digital marketing strategy and becoming future-ready, get in touch with Goldmine Media today. We are a financial services marketing agency with years of experience in the sector. Call 0845 686 0055 now or email email@example.com.