Other parts of this series:
Banks, wealth managers and insurers have seen technology giants, innovative startups and other established businesses tear down the barriers to the financial services industry and capture market share while gaining scale. These new competitors are using various technologies to reshape the industry by brokering novel collaborations and offering new services.
As Accenture explains in its report, Three technologies that are changing the financial services game, artificial intelligence (AI), the internet of things (IoT) and blockchain will be instrumental in reshaping financial services institutions (FSIs) and the industry in both the near and long term. To remain competitive, drive growth and reduce costs, FSIs will need to understand these technologies and learn how to use them.
Implementing these technologies will involve not only integrating them into operations but also embracing the organization-wide changes they will drive in:
- The portfolio of products and services FSIs offer.
- How work is performed.
- The skills the workforce will need.
In this blog series, we’ll examine each of these technologies and how they likely will reshape financial services beyond the impact they already are having. We also will offer some guidance on launching initiatives to leverage them.
For example, AI is reducing costs and helping to improve customer service. That includes robotics that already are improving the accuracy and speed of manual tasks. At one global bank using AI in automating the handling of unmatched invoices, the process is 46 percent more efficient, including a 40 percent reduction in handling per transaction. Moreover, the accuracy rate is now 100 percent.
The IoT, meanwhile, is ready to transform the insurance industry by opening up new revenue streams through personalized insurance policies and additional services as consumers’ habits are increasingly influenced by internet-connected devices.
And while the technology for blockchain—a tamper-proof, distributed database of transaction data—is still in its infancy, it has the potential to significantly transform the industry by enabling faster and more secure transactions. Settlements will take minutes, and reconciliations and middlemen no longer will be needed.
Next time: Artificial intelligence is set to reshape the financial services industry.