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Finance 101: 5 Essentials for the Next Decade

Both personal finance and business finance are changing dramatically with the introduction of new technologies and companies entering the market with the aim of revolutionizing the space. While traditional Payday loans direct lender for bad credit Demand remains high, and the finance industry as a whole is likely to see a whole wealth of new changes over the next decade. Here, we look at some of the fundamentals that we believe will shape the finance industry over the next 10 years.

Increased use of artificial intelligence

Artificial intelligence (AI) has consistently shown a lot of potential, and while some financial services use this at a low level, the potential of AI has continued to grow. Some of the AI ​​use cases include helping drive already established processes and increase agility across businesses. Some key examples include improvements in MIFID-II reporting, better fraud detection, and a better understanding of consumer needs through natural language processing (NLP). As the world becomes more digital, at a much faster rate than anticipated due to the COVID-19 pandemic, AI can help provide true customer personalization that consumers demand more and more. Ultimately, the use of AI can help develop and nurture mutually beneficial relationships while enhancing the customer experience in the long run.

NFTs

Non-fungible tokens, otherwise known as NFT’s, are an encrypted token record on the blockchain that is equivalent to a digital or physical asset. These assets can be sold or traded and transferred on the blockchain by the owner of the asset. These assets are already frequently traded across the web, but over the next decade we expect to see more real-world attribution for these digital tokens. Art and real estate are already represented by NFTs with the goal of reducing the possibility of fraud and making the buying and selling process more efficient. Some of the other real-world applications we could see in the next 10 years include a role in licensing records and vehicle papers. The gaming, music and art industries are likely to be the most disrupted through the use of NFTs as well as companies looking to create a revenue stream through the sale of NFTs. Besides, a more realistic implementation of Bitcoin and other cryptocurrencies is likely to take off as a decentralized payment method.

open banking

It is expected that 70% of financial institutions will adopt some form of open banking by 2023, and the next decade is likely to see an extension to 100%. Open banking allows money to be moved and managed in a highly secure manner, while giving customers stronger influence and control. Open Banking was introduced to help financial institutions provide innovative services to their customers, giving them more choices. We expect to see this grow even further over the next decade, providing even more customization for customers.

data management

Data is growing at an unprecedented rate, and managing this data in an efficient and integrated manner is imperative. With the introduction of more laws and regulations around data privacy and protection, growth is a major challenge for organizations and financial teams. Introducing data alignment strategies as part of data management and integrating more agile, technology-based processes to further automate and effectively manage this will be essential over the next 10 years. Of course, data privacy and the protection of customer information should remain a top priority, as well as ensuring data quality and consistency in the long run.

cooperation

Without close cooperation and cooperation over the next ten years, many financial institutions could quickly become disrupted. The market is becoming saturated with more regulators, banks, fintech companies and big tech companies entering the market. We’ve seen some partnerships form as a direct result of addressing this, and we expect to see more collaboration between companies in the industry to force them to lead in the industry.

photo by Fermby From Pixabay

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