Many financial institutions are openly engaging with FinTech organizations to support their innovation initiatives and expand the way their organizations can ensure security, create personalize back-end value adds, and give customer-facing tools that can deepen their relationship with an organization.
Below are a few examples of how FinTech can be leveraged and applied to your financial institution, along with the technologies to support these partnerships.
Security screenings used to require a higher degree of human interaction to vet, analyze and take action on possible security threats and notifications. Now, much of these processes are automated, where FinTech organizations are sophisticated enough to provide data analysis that fully comprehends the security threat, takes automatic action (such as notifications or pausing accounts), sends back end record keeping, and can perform follow-up tasks depending on the customer’s concern and legitimacy of the security threat.
Blockchain technology is still getting off the ground for the financial services world, but once it is fully established, it will allow for the automation and real-time security of peer to peer transactions. Simply put, blockchain will provide a universal and verified security system for online transactions between customers without the need for third-party mediation or supervision.
Robo-responders have become more sophisticated over time, and FinTech organizations can create personalized responders to address customer questions effectively in an online format. These types of systems are particularly effective when backed by a human element, but used on the front end to handle simple and straightforward requests, and provide a money-saving option for organizations.
Simply put, the open API platform is one of the most fundamental ways FinTech organizations can work with banks and credit unions to leverage their data in innovative ways. If not already in place, banks and credit unions should work with their legal and digital teams to provide an open API so that FinTech organizations can access their data, manipulate and utilize in ways that provide value and do so in the most familiar, industry-standard way possible.
Data Science and Machine Learning
Data science and machine learning are at the forefront of data analytics for financial institutions, finding ways to capture large degrees of customer data, analyze it, apply it and learn from it moving forward. Data science is transforming financial institutions, serving useful in situations as granular as deciding what type of ad to show a customer all the way to giving context for major decisions within a financial institution’s executive team by providing valuable insights.