People are increasingly embracing wealth management solutions like Robo Advisors. Robo-Advisors tools offering financial recommendations according to customer profiles is the big trend as the cost associated with traditional advisors is too high and does not make sense for clients who do not qualify as ultra high net worth. These are artificial intelligence based solutions, which save a lot of time by doing away with the middleman.
Blockchain and Bitcoin are gaining a lot of traction in financial services community. Blockchain technology can remove the complexity of international banking network by providing innovative, immediate cross border payment scheme. The Bitcoin payment infrastructure incurs much lower fees than traditional credit card-based transactions. While it is possible that the Bitcoin may not succeed in the long-term as a Cryptocurrency, it is the technology behind it – the blockchain – that is the real innovation, which a growing number of banks believe may be effectively leveraged to transform payments.
Alternate finance products are becoming mainstream. Alternative finance options like P2P lending, equity crowdfunding etc. are seeing more participation. After 2008 financial crisis, banks started tightening consumer-lending policies. These P2P lending providers offer customers a chance to get loans easily as long as they have high credit score.
Big data and statistical Analysis are being used by Portfolio managers to make right trading decisions. All these insights are also allowing investors to make more informed and better investments. It’s also being used in other areas like Fraud Detection, Risk Analytics etc. Using credit risk analytics and Predictive modeling techniques companies are identifying fraud and evaluating potential risk.