Data has become the new currency in today’s financial landscape, and the fintech industry is leading the way by leveraging technology to tackle challenges and deliver better financial solutions.
Financial businesses are competing to transform their activities, and with the existing economic conditions, customers are demanding far more services and solutions, with increasing availability of new data, new data management policies and the potential of cyber attacks rising. The various ways of managing data can be vital tool to tackle challenges in the finance industry. Fintech has transformed traditional banking, delivering innovation to a market previously considered unchangeable. New businesses have challenged the norm, driving financial companies to change and move away from legacy systems.
There is now a significant opportunity for finance companies to use the data available in fintech. This will help companies work through the new landscape and improve data access, leading to more effective customer-focused services and enabling banks to remain competitive in a digital world.
Data stands at the core of financial services, from credit ratings to regulatory compliance and fraud detection. The volume of data available in finance is considerable, and the demand to explore and measure this information is more critical than ever. There are several key areas where fintech can drive improvements in access to data for finance companies.
Firstly, data security is a top priority for all businesses as cyber-attacks are rising, with studies suggesting that businesses experienced a 77% increase in attacks in 2022. This figure represents a significant threat for financial companies as finance holds valuable information that makes businesses potentially more vulnerable to cyber security threats. The fintech industry offers innovative ways to protect data via advanced encryption processes, sophisticated authentication and blockchain-focused solutions. These progressive forms of technology can support finance companies in protecting customer information, building stronger relationships and defending themselves against possible reputational and financial loss.
Delivering a more flexible approach
Data interoperability is critical in today’s financial ecosystem. Customers increasingly depend on various financial providers, while demanding an effective experience and customer service. Existing legacy systems used by many incumbents often lack the flexibility and available services needed for seamless data exchange, resulting in relatively slow and unstructured customer service.
Fintech companies offer solutions to these challenges, utilising open banking processes and APIs, enabling the integration of services between various groups, and improving collaboration and data sharing.
The enhanced use of data can improve business operations by changing the way financial companies determine plans, manage risk and support their customers. Data-focused decision-making, supported by new techs like AI, ML and big data analytics is all possible because of solutions presented in the fintech industry.
The fintech industry can strengthen the financial sector by providing solutions that can improve operations and enable companies to create services that meet customer needs and ensure they remain competitive. By rethinking how we use data and utilising the potential of fintech, finance companies can streamline their operations, improve customer experience and make better decisions, driving growth and increasing competitiveness in the industry.
The fintech industry has a significant opportunity to generate positive changes and improve data access for finance companies. It is the responsibility of the finance industry to recognise and implement the services available and the fintech providers to continue generating new solutions to improve operations. Through collaboration, the fintech industry can reshape traditional finance companies, unravelling a reformed, efficient and secure financial future while enabling a customer-focused approach leading to accelerated future business growth.