FinTech is generally a broad sector that involves many streams of AI (Artificial Intelligence) and digital banking; however, one part of it that plays a massive role in the industry is the data networks behind it all. Within this week’s blog post, we explore the fundamental role that data networks and data science play in Fintech services and how crucial it is in today’s modern banking practices.
Better Customer Service
One of the key uses of data networks in FinTech is it being capable of enhancing customer service experiences. For instance, through more advanced data systems, more algorithms can be created through robotics and AI chatbots to ensure that the company’s app is providing their customers with the best options available as well as more personalised choices. This not only highlights the importance of data networks but also shows how it can be used for online banking platforms to have more of a competitive edge as all these new technologies really broaden how marketing strategies can be used to their full potential.
Although the advances of data systems have done a lot of good for the FinTech industry, the large amounts of data that are able to be collected due to this can also pose a threat to financial services and companies. This is mainly because increases in data collected, and cloud computing have increased the regulatory burden on companies and increased the risk of cyber-attacks over time therefore making it more of a disadvantage rather than a positive outcome.
Analytics & Open Banking
One of the concepts that gained more traction through the FinTech revolution is open banking. This is essentially where a third party is given access through API’s (Application Programming Interface). This is beneficial in the sense that it offers FinTech companies a lot more services to offer their consumers such as new payment possibilities, better customer service as mentioned before, as well as better consumer data management. Ultimately data science used for open banking has really broadened the horizons for FinTech companies and start-ups like mytalu as well as providing them with infinite options and strategies.
What does the future hold?
From reviewing the importance of data networks in FinTech and looking into the role it plays within the industry, it is evident that it is only set to get better. So far in today’s modern banking world, data science has really aided how we as consumers are able to manage our finances digitally without any issues as well as FinTech companies who are benefiting from the technological advances data science brings with it. Overall with more innovations in the industry to come, it is safe to say that banking practices can only improve from here.