2019 figures to be a big year in the world of finance. Many business experts are predicting a long overdue global recession.
With shrinking revenues, companies will turn to reduce expenses in a bid to keep profit margins strong. Enter financial technology designed to improve efficiency and cut costs.
Trends such automation and blockchain are certain to make even greater strides in 2019. Read on stay current on the latest finance industry trends.
While bitcoin as a store of value fell on hard times in 2018, the blockchain segment is still a popular finance trend. In layman's terms, blockchain is a decentralized ledger of financial records.
The "chain" is a series of encrypted financial records. Each new entry is called a "block" added to the existing chain. Only those with a key are able to add or change an entry. This process makes it almost impossible for hackers to manipulate data.
In 2018, major companies like Facebook and Marriott suffered high-profile security breaches. To reassure consumers that their data is safe, look for companies to increasingly turn to blockchain for security needs.
Remember, during an economic downturn, companies are looking to optimize processes and reduce cost. This is where financial software that centralizes corporate data comes into play.
Many companies mistakenly have important data spread out in several different places. Software firms such as Umlaut have developed a platform that consolidates all data into a single dashboard.
Multiple functions such as document management, financial planning, and automation are interconnected. The result is improved workflow and more efficient processes.
Artificial Intelligence (AI)
Another growing trend is the move towards AI. Many businesses are integrating AI into their finances to improve productivity.
In fact, its estimated that AI will save financial companies $1 trillion by 2030.
AI is used for a number of different purposes in the financial sector. For example, major banks like Wells Fargo deployed chatbots on mobile banking apps.
The objective is to provide account holders with 24/7 access to customer service reps.
Fraud monitoring is another area in which AI is playing a larger role. AI is being integrated into banking systems to quickly detect fraudulent behavior.
Other AI technology is being deployed to reduce the need for human employees. One example is an AI-based recognition system that is revolutionizing the document review process.
The AI is programmed to review and extract important information from financial documents. These documents include tax statements, receipts, and contracts.
This review and extraction process is substantially more efficient than a human review.
A Recap of 2019 Finance Industry Trends
These are just a few of the emerging financial trends heading into 2019. There are other trends like increasing use of the cloud, big data, and regulation tech.
In our estimation, blockchain and AI will have the biggest impact on the financial sector next year. The key themes are cost reduction through efficiency and safeguarding consumer information.
If you enjoyed this article about finance industry trends, check out our commerce blog for other great pieces.