Tag: artificial intelligence

4 Ways Technology is Transforming Financial Services

Banks and insurance companies have relied on the same business models for decades. Technology has affected the industry in a few ways, such as computer spreadsheets replacing paper ones. However, the rate of change in IT and customer expectations are driving massive change in the financial industry. For example, we’re seeing mobile payments websites and peer to peer lending websites hitting the mainstream and becoming a viable alternative. Here are four ways technology is transforming financial services.

The Rise of Alternative Lending Arrangements

While many people still apply for a home loan or credit card from their bank, you have far more options than were available just a few years ago. You can refinance your debt or get funding for a new venture via a loan through a crowdfunding site. The internet also makes it possible to apply for loans with alternative lenders.

For example, you can now easily access bad credit loans online through direct lenders and brokers. Some even offer both sources of capital through a single portal or app. The application can be approved in hours or even minutes, and the money could be in your bank just as quickly.

Or you can simply ask for donations to pay for expenses. This is true whether you’ve suffered a tragedy or are seeking money for your new business venture. In the latter case, you might incentivise the donors by offering them one of the first working prototypes off the production line or just give them branded swag.

The Impact on Insurance

The insurance world has started to change in the face of decentralization, and the consumer market is also evolving. For example, people serving ride-sharing app customers can buy insurance by the kilometre to have commercial vehicle insurance only when they have a paying fare. Insurance is having to adapt to provide coverage for other services offered through the sharing economy like renting out your house for the weekend via a rental site.

On the flipside, advanced sensors and smart tech allow for closer monitoring of assets and actual risk. Car insurance companies are starting to offer insurance based on your actual driving habits. A device plugged into the car tracks how hard you accelerate and brake and where and when you drive. This can reduce your insurance rates if you’re a safe driver, and the data it collects may be invaluable in defending you in an accident claim. Other devices track the location of vehicles, allowing trucks and cars to be recovered as soon as they’re reported missing.

Health insurance companies are asking people to track health and workout data via wearable computers. Wearable sensors can report when someone has passed out from heatstroke or a head injury. Insurance companies incentivise the adoption of this technology to reduce the risk of having to make payments.

The Impact of Artificial Intelligence

Artificial intelligence is affecting everything from rapid A/B testing of marketing content to providing smart search engine results. It is being used to mine social media comments to read social sentiment in real-time. It has led to robo-advisors offering financial advice to clients of major investment firms and monitoring of financial data for small advisors. It is being used to streamline infrastructure, connect buyers and sellers and monitor for fraud.

ConclusionTechnology is Transforming Financial Services

Technology is revolutionizing every aspect of the financial world. It doesn’t just alter how we interact with institutions or streamline back-office processes. It has opened up the financial and insurance market to new players and resulting in brand new services to meet customer needs and wants.

Will mobile technology trends kill the smartphone by 2021?

A recent study has shown that consumers feel artificial intelligence will have taken over this tech in half a decade.

According to a survey conducted by researchers commissioned by Ericsson, many consumers are under the impression that within the span of five years from now, mobile technology in the form of smartphones will no longer exist.

This research was conducted by ConsumerLab, with the participation of 100,000 customers across 40 countries.

The study looked into the predictions and expectations of consumers with regards to mobile technology that will be used over the years to come, as well as what they would like to see in the future. Approximately half of the respondents to this survey said that by 2021, the most common forms of mobile tech – more specifically, smartphones – would no longer be in use by the year 2021. The reason, according to the survey respondents, would be that developments in artificial intelligence will have superseded many of the current functions of smartphones.

Many people feel that the concept of current mobile technology still carries too many levels of impracticality.

Mobile Technology & the FutureAccording to Ericsson ConsumerLab’s Rebecka Cedering Ångström, “A smartphone in the hand, it’s really not that practical. For example, not when one is driving a car or cooking. And there are many situations where display screens are not so good. Therefore, one in two think that smartphones will belong to the past within five years.”

Cedering Ångström also forecasted that the evolution of tech will make it possible for consumers to enjoy their downtime more effectively. She gave the example that someone could not only watch a football game, but they could also decide from which vantage point they would like to view it, or choose tow different places at once. She also pointed out that shopping could also be an experience that could be vastly improved through the use of virtual reality advancements, such as the ability to use VR to “try on shoes and see how they fit on your own feet.”

The Ericsson ConsumerLab head of research, Michael Björn explained that while some of the mobile technology future trend predictions discussed in the company’s report may seem to be rather futuristic, it shows that there is solid “consumer interest in new interaction paradigms such as AI and virtual reality (VR), as well as in embedding the internet in the walls of homes or even in our bodies.”