Fintech in Banking: Trends and Implications

This report discusses the importance of Fintech in the banking sector and explores the trends and implications of AI, voice technology, blockchain, and 5G wireless. It highlights the impact of these technologies on customer service, data security, and financial integration.

Data Analytics in
Accounting, Economics
& Finance

EXECUTIVE SUMMARY
The report summaries the importance of Fintech in the present time especially the banking
sector which support to increase the level of every kind of banking i.e. online or branch banking.
The report defines the main function between a customer and a bank is a valid and sound
communication system, thus interaction or communication from all intelligent devices has also
been greatly affected by rapidly changing automated processes. All of the above factors are the
current guidelines of technology transformation for adjusting goods and products between
spoken operating systems.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
Introduction......................................................................................................................................4
Discussion........................................................................................................................................4
Banking will change over the next five years as a result.............................................................4
Evaluation with reference to contemporary sources....................................................................6
Conclusion ......................................................................................................................................7
References........................................................................................................................................9

Introduction
Financial technology (Fintech) is being used to define innovative industry designed to enhance
and simplify investment banking implementation and then use (Financial services of bank,
2020). Fintech will be at its heart, using expert methods and technology used for the machines
and ultimately phones to support company owners, customers and consumers efficiently control
business, processes as well as lives. Fintech is an "economic software" combination. Many
consumer loan sites are now using iterative ML approaches to continually boost current
efficiency which is because of Fintech (Berger, Klapper and Turk-Ariss, 2017). They may not
therefore have to make a big jump to AI as well. The final-tech game-changer market is not
defined in the nearer future by modern simulation techniques but rather is able to incorporate all
three improved analytics, alternate sources of data including their current approaches to the
market. The quickly-evolving advanced automation developments have also affected the contact
with all intelligent devices greatly. The current standards in the age of digital innovation
adapting goods and product to spoken devices all of the considerations referred to above.
Discussion
Banking will change over the next five years as a result.
Fintech will boost the user service tremendously, integrating modern data collection and
storage techniques with business intelligence including network security technologies. Here we'll
take a peek at 6 global developments to threaten the banking sector in the next year (Trends of
Fintech in banck, 2020).
AI Evolution
In 2019, there was a massive turmoil around machine learning in fintech. Although only
some very instances were scaled being commercialised successively. Artificial intelligence, from
the other side, has stronger options complementing conventional research of fintech. AI will be
promising alternative sources of consumer knowledge and collection procedures throughout the
upcoming period. It is seen that several credit underwriters have used AI to evaluate alternative
data streams, including cell phone numbers as well as events and actions of the social platform.
In order to consistently boost current efficiency many customers' lending channels now use ML
approaches. So you don't have to create a significant jump to AI either.
The Voice Revolution

There is an increasingly rising number of voice activated applications. More than ever,
people buy and communicate with them so much voice queries can be done. Half among all
internet searches would be personality by 2020, as per Comscore. AI technology developments
have since had a major impact on the manner in which users communicate with our intelligent
computers. All of the aforementioned considerations represent current digital development
criteria – transforming services and goods to speech capabilities.
Blockchain
In 2019, Blockchain became much lower that planned to become part of processes in
various sectors. They expect that in 2020 this innovation would be faster adopted and its value to
banking will be uncovered. Although Blockchain bank technologies do require testing, these can
create faith and accountability link between financial entities and financial clients. This system
will slash transaction emissions and improving cash flow dramatically.
Expansion of 5G Wireless
The banking sector should be prepared to even provide everywhere with a secure Internet
service. The effective introduction of emerging technology into financial services is important.
But during digital transformation phase companies which do not matter about through lose out.
5G also ensures enhanced conditions for the development of the Cloud computing to ensure
smooth, secure connectivity between users. More than anyone, consumers are using connected
devices and that bank can take into consideration that people demand customer to supply
banking applications accessible on a variety of Sensor nodes mostly during digitalisation of
financial services. 5G speeds downloading and retrieval of data, which increases both consumer
and banking experience considerably. For example, voice helpers will now have more detailed
and reliable feedback in near real - time. It guarantees a seamless flow of collaboration between
data protection and advanced biometrics.
The Fast Growth and Scaling of Chinese Fintech Ecosystems
Typically one or a few principles derive like P2P transfers, crediting or online transactions
would concentrate on most popular fintech firms (Fintech in banking. 2020). They are growing
their experience in this sector and globally extending the company. For example, PayPal only
focuses on online transfers, while Money market only handles wealth. In comparison, Chinese
fintech interceptors behave according to another algorithm. These technology giants are typically
built on Fintech's current deeply engaged customer networks. The Financial is an outstanding

example. The framework is based on the e-commerce website of Alibaba. A variety of company
to solutions and services such as digital payment Alipay, Yu'E bao for Mobile payment wallets
deposits, MYbank for digital money, and more are offered by Ant Financial. This strategy has
seemed very successful and would have a huge impact on fintech developments worldwide.
Evaluation with reference to contemporary sources
Perhaps more frequently than ever, customer face cyber-attacks and threats now. The value
of cryptography is acknowledged to contemporary society. While several businesses rely on data
privacy, they are also vulnerable to hacking security problems. As for cyber security, companies,
like consumer privacy infringements, a shortage of trained cyber security professionals, security
optimization, as well as convergence, face many obstacles. It has also been especially prominent
in recent years for both the finance system because the financial market today is digital and also
wants information security far more than most other sectors, cyber technology developments
would have a huge effect on it. Improved online protection will be some of most significant
developments for fintech throughout 2020.
During the past few years Fintech has grown dramatically and is still rising rapidly.
Abovementioned six developments describe the big shifts and shifts that will soon take place and
form the landscape of financial products throughout the forthcoming year. Throughout the
insurance sector, similar innovations existed but on a smaller basis because as investment
company was less interactive. The digital financial technology process demonstrated, broadly
speaking, that IT can provide help for services and goods throughout the financial sector. This
has led to definition that includes the availability of these technologies by the operator as well as
the risk associated with electronic operations (Nguyen, 2016). Though advantages so in many
situations outstripped the costs, the economic meltdown began in 2007 as well as the regulatory
constraints which followed highlighted their facilitating and preventing financial sector
transitions. In reality, the competitive environment was very resilient and during electronic stage
and current systems have been vastly strengthened by IT. Innovative upstream IT technologies
are rapidly being disseminated. "When the strategy study was published throughout the FinTech
"flavourings" were already imaginable however the "FinTech" idea was soon seen." Therefore
the policy statement called the "Banking IT inventions" trends. Regarding the core market
offerings for both the banking industry, an usage of electronic new services have offered an
insight into the wide scope of FinTech financial applications in the fields of financial

intelligence, planning & advising, transfers, acquisition, finance and border assistance. Quite
sometimes there were few options and a particular consumer concern was dealt with. There is
fast diffusion of creative upstream IT technology (Vasarhelyi, Kogan and Tuttle, 2015). "Some
idea of the "FinTech" concept was still feasible before the policy paper was written in the
FinTech "Flavourings," therefore the policy document was dubbed "Banking IT Innovations." In
terms of key business deals, the use of emerging electronic services for both the financial sector
has given insights into FinTech's vast spectrum of financial solutions in the areas of financial
information, planning & consultancy, transactions and acquisition, financing and frontier
assistance. There were often few alternatives and a clear customer issue was discussed. The
purpose of this foreword was to present the unique FinTech topic with a description on how the
FinTech trend is evolved and extract formative elements that can clarify how FinTech offers
financial sector transformative capacity that goes past basic linear advancement. Financial
innovations date back to finance entities as defined in the historical but the present phase
FinTech began in 2008.
Conclusion
In the last of report, it is concluded with some of the useful CBA specific actions:
Firstly, Fintech now represents a range of financial practises, like money deposits, dumping
a check through respective mobile.
Secondly, CBA will put a customer centric viewpoint which will more look on product and
services, real time intelligent data which will save cost and time of both customer and bank.
Thirdly, CBA will open Hybrid outlets that are envisioned by the technical specialist which
will deliver the best services to customers.
Recommendation and suggestion
Fintech applies to technological convergence of financial services providers' products to
optimise customer use and distribution. The key aim of the project is to unbundle deals from
those businesses and to build new markets. It can be also suggested that an increased financial
integration and use of innovation to slash running expenses challenge finance industry
establishment candidates. Fintech investment is increasing, but there are also regulatory
concerns.
Summary of all section

Frome the above report, it is suggested that many credit firms or banks can using AI to
analyse alternate data sources, including mobile phone data, as well as social media site activities
and acts. All the above considerations are existing standards for digital growth, translating
services and products into expression. There is fast diffusion of creative upstream IT technology.
"Because when technique report was conducted in the whole FinTech it had already been
possible to see, that although 'FinTech' concept was eventually recognized for up gradation of
entire banking industry.

References
Books and Journals
Berger, A. N., Klapper, L. F. and Turk-Ariss, R., 2017. Bank competition and financial stability.
In Handbook of Competition in Banking and Finance. Edward Elgar Publishing.
Nguyen, Q. K., 2016, November. Blockchain-a financial technology for future sustainable
development. In 2016 3rd International conference on green technology and sustainable
development (GTSD) (pp. 51-54). IEEE.
Vasarhelyi, M. A., Kogan, A. and Tuttle, B. M., 2015. Big Data in accounting: An
overview. Accounting Horizons, 29(2), pp.381-396.
Online
Core reference
Fintech in banking. 2020. [Online] Available through:
< https://www.ey.com/Publication/vwLUAssets/ey-unleashing-thepotential-of-fin-tech-
in-banking/$File/ey-unleashing-the-potential-of-fin-tech-inbanking.pdf >.
Suggested reference
Financial services of bank. 2020. [Online] Available through:
<https://www.mckinsey.com/industries/financial-services/ourinsights/smarter-analytics-for-
banks>.
Trends of Fintech in banck. 2020. [Online] Available through:
<https://www.mckinsey.com/industries/financial-services/ourinsights/synergy-and-disruption-
ten-trends-shaping-fintech>.