A handful of financial technology (fintech) trends are expected to strengthen significantly in 2018.
In particular, the growth of Artificial Intelligence (AI) looks to be instrumental for three specific reasons: hugely increased opportunities for improved customer centricity; ability to ease the regularity reporting burden through AI enabled ‘RegTech’; and massively improved cyber-security and data protection.
These predictions , reported by Bobs Guide, and made by global technology consultancy, DataArt, also expect to see similar growth in blockchain. This is largely due to firms finally waking up to the huge cost savings and security benefits from distributed ledger technology. As well as, performance problems that are beginning to be solved, that are so often associated with original blockchain technology.
When it comes to AI, DataArt brands it as an “industry game changer,” but one that “will not come without problems as the current industry wide skills gap turns into a ‘war for talent’.” Already we are seeing problems in one of the biggest users of AI, cyber-security. Information Systems Audit and Control Association (ISACA) predicts two million hard to fill vacancies in this one area of AI alone by 2019.
However, we will see great change in the rise of AI techniques, including pattern recognition, machine learning (ML), and fuzzy logic. We will also see a transformation for cyber security in the form of the complexity and power of AI applications being developed to keep financial and personal data safe.
In order for AI and ML technologies to work at their most effective, firms need unrestricted access to large amounts of customer and market data. This will in turn further a big trend of the last ten years: Big Data. The future looks promising, as new AI frameworks will be soon be able to store, consume and use enormous amounts of data in a way that could only be imagined five years ago. Therefore, the volume, diversity and quality of data sources will play a big part in the success of AI solutions and business models. Looking ahead, cross-domain exchange of data will slowly become the norm, as we will begin to notice growth in solutions focused on aggregating and exchanging user data. As a result, more importance will be lent to data security, data regulation and data breach prevention.
For all of this to happen, regulators will need to accelerate their understanding of the implications arising from using AI based data solutions. For firms in all industries multi-layered data systems will be essential to protect any data.
Aside from this, we should also prepare for changes this year in digitisation, when attempting to achieve the best possible User Experience (UX). Living in the digital era, most people use high quality digital apps on their phones, tablets and PC’s in every aspect of their lives on a daily basis. This year we should expect to see the same accuracy as Uber, If they can tell us where the car is, who is driving it, how long it will take to arrive, we should expect to see the same level of visibility in our insurance claims.