In the past decade, financial services have become more accessible to consumers and businesses alike, and we all have fintech to thank for that unlocking of value. But now that fintech is maturing, it needs to take the next step in ensuring it continues to deliver on its goal of financial accessibility. To do that, you guessed it; it needs to embrace automation.
Automation offers many benefits, particularly for digital-first businesses built on their visions of accessibility, efficiency, and connectivity. Fintech is a great example of an industry literally enabled by cutting-edge technology to make better products and services. Here is how fintech can take that next step and continue to conquer.
What Is Fintech Automation?
Automation in fintech is any technology that takes away the need for a human operator to carry out a task – most commonly a digital interaction like clicking a mouse or pressing a key on a keyboard. Different types of automation can be combined with other technology to create even more powerful solutions, such as Artificial Intelligence (AI) and Machine Learning (ML) based algorithms that develop over time to process an action more effectively.
Challenges and Opportunities In Fintech
The biggest challenge that fintech faces in 2022 is the pressing requirements of data security and privacy regulations. Like any financial institution, fintech companies are heavily regulated, much to the benefit of consumers. But maintaining that level of compliance can be challenging, especially where large amounts of data are processed manually – the case in many businesses. Automation’s role in removing manual work from people is usually angled around time savings, but in the case of fintech, the benefit of no mistakes from robotic data entry is even more appealing. Automation can help fintech firms stay compliant with far less effort.
Use Cases of Fintech Automation
As we just mentioned, one great use case of automation in fintech is anywhere data entry is happening regularly. One of the key places this can be implemented is for customer onboarding. When a customer opens an account with a fintech firm, they will agree to process their data, and ensuring that all that data is correct from the outset is key. That data will impact things like credit score, mortgage terms, or the cost of underwriting, so it must be accurate at the point of entry – which a bot guarantees.
Another great example of fintech automation is in establishing system interoperability. App-to-app or app-to-service integration is a huge part of how many platforms offer a wide variety of features. RPA provides a valuable way for connecting systems via things like APIs rather than manually building integrations that are likely to break whenever either side of a system is adjusted.
Work in Fintech and need to harness the power of automation? PAteam is here to help.