What’s New and Necessary in Financial Tech?

The Internet of Things (IoT) is revolutionizing the financial sector with a slew of new technologies and frameworks. Here we break down the most important new aspects of financial tech in the twenty-first century.

You may have heard of a little phrase called the "Internet of Things" (IoT). It is a niche phrase, but a ubiquitous one nonetheless, used to describe the modern era of technological progress in which hundreds of millions of global consumers operate many of their daily tasks through mobile computers, smartphones, tablets, and even wearables such as smartwatches. Everything from shopping, entertainment consumption -- and yes, even banking! -- Are performed through these mediums. Physical objects, currency, and abstract information all bounce through the ether before landing the final stage of the transaction or consumption.

It should come as no surprise, then, that the IoT is steadily revolutionizing the world of financial services. From handling wealth and asset management to stock exchanges to simply checking one’s savings account, digital interfaces are the new face of the economic sector. An increasingly competitive financial market means that financial institutions must transform their own administrative and banking operations if they are to obtain the greatest potential for success.

New leaps and bounds in the world of analytics in fintech mean that the biggest challenges also arise from these arenas. In addition, tighter market regulations pose greater challenges than ever before. Consumer trends, up-to-date government guidelines, transaction data, and client information are all major components of the "big data" and "predictive analytics" so vital to creating the bigger picture of your institution’s projections over the upcoming months and years.

But where to start? What are the tools that your company needs in order to keep up with these new levels of technological disruption? Here, we parse out some of the key terms and features most necessary for the financial businesses of tomorrow.

Big Data and Predictive Analytics

The ability to generate a comprehensive understanding of consumer and marketing trends in the financial sector is determined largely by the ability to organize and synthesize a constant influx of numbers and raw data -- in other words, big data. This is understandably a rather scary step to overcome. An advanced predictive analytics framework is the key to gathering, breaking down, and making sense of these numbers, which are sourced from a multitude of platforms into a data warehouse. Current legacy systems and more traditional methods of processing data usually results in rather poor data quality... Leaving many economic institutions woefully behind their peers in capitalizing on the unpredictable fluxes in the market.

Cloud Computing

As long as we’re talking updating technology, let us turn to cloud computing -- the cornerstone of handling tremendous amounts of data and information. Making the switch from a legacy to a cloud-based analytics framework requires boatloads of data migration into a singular, centralized online location renders your financial business and transaction data more secure and readily adaptable to a fast-paced fintech industry than ever before. Sapient’s guide to cloud computing frameworks in the financial industry translates into greater levels of automatic computing, as well as a generally easy-to-use interface for businesses and customers alike.

Of course, startups and financial companies that have been in the running for years face rather different obstacles. Business Insider observes that while newer, smaller banks are still working their way through the basics of meeting and fulfilling regulation requirements, larger, more established companies must fumble through often overwhelming transitions from legacy administration infrastructures to newer, IoT-based software's.

Mobile Solutions

The backbone of all IoT operations, mobile devices are the gears churning the financial machine towards highly advanced and accessible modes of operation. Social, mobile, analytics, and cloud (SMAC) technologies mean that today’s users will harbor nearly 24/7 access to their banking and financial information. Mobile application enterprises tailored towards popular smartphone and tablet models are opening up two-way streets of communication between clients and businesses, enabling a deeper level of trust between banks, asset management firms, and other financial companies and their customers. The ability to access bank statements at any time, electronically transfer money between accounts, and even make investments or trade stocks online from the comfort of one’s own couch -- or on the go! -- Is granting consumers more power. All this while simultaneously handing your business the tools for resounding success.

Where Does Your Business Fit In?

At the end of the day, all of these highly advanced solutions are crafted specially to help your business and your clients pave a smoother, richer path to success. Adopting new financial tech frameworks containing cloud-based software, mobile solutions, and predictive analytics are the keys to building lasting, fruitful relationships with your customers -- and, consequently, to streamlining your organization to reach its maximum potential.

Prime Technology Group, LLC is a global, technology services company with innovation at the core of our business engagements. For more Information visit http://www.PrimeTGI.com