Data has become the new currency in today’s financial landscape, and the fintech industry is leading the way by leveraging technology to tackle challenges and deliver better financial solutions.

Financial businesses are competing to transform their activities, and with the existing economic conditions, customers are demanding far more services and solutions, with increasing availability of new data, new data management policies and the potential of cyber attacks rising. The various ways of managing data can be vital tool to tackle challenges in the finance industry. Fintech has transformed traditional banking, delivering innovation to a market previously considered unchangeable. New businesses have challenged the norm, driving financial companies to change and move away from legacy systems.

There is now a significant opportunity for finance companies to use the data available in fintech. This will help companies work through the new landscape and improve data access, leading to more effective customer-focused services and enabling banks to remain competitive in a digital world.

Data stands at the core of financial services, from credit ratings to regulatory compliance and fraud detection. The volume of data available in finance is considerable, and the demand to explore and measure this information is more critical than ever. There are several key areas where fintech can drive improvements in access to data for finance companies.

Firstly, data security is a top priority for all businesses as cyber-attacks are rising, with studies suggesting that businesses experienced a 77% increase in attacks in 2022. This figure represents a significant threat for financial companies as finance holds valuable information that makes businesses potentially more vulnerable to cyber security threats. The fintech industry offers innovative ways to protect data via advanced encryption processes, sophisticated authentication and blockchain-focused solutions. These progressive forms of technology can support finance companies in protecting customer information, building stronger relationships and defending themselves against possible reputational and financial loss.

Delivering a more flexible approach

Data interoperability is critical in today’s financial ecosystem. Customers increasingly depend on various financial providers, while demanding an effective experience and customer service. Existing legacy systems used by many incumbents often lack the flexibility and available services needed for seamless data exchange, resulting in relatively slow and unstructured customer service.
Fintech companies offer solutions to these challenges, utilising open banking processes and APIs, enabling the integration of services between various groups, and improving collaboration and data sharing.

The enhanced use of data can improve business operations by changing the way financial companies determine plans, manage risk and support their customers. Data-focused decision-making, supported by new techs like AI, ML and big data analytics is all possible because of solutions presented in the fintech industry.

The fintech industry can strengthen the financial sector by providing solutions that can improve operations and enable companies to create services that meet customer needs and ensure they remain competitive. By rethinking how we use data and utilising the potential of fintech, finance companies can streamline their operations, improve customer experience and make better decisions, driving growth and increasing competitiveness in the industry.

The fintech industry has a significant opportunity to generate positive changes and improve data access for finance companies. It is the responsibility of the finance industry to recognise and implement the services available and the fintech providers to continue generating new solutions to improve operations. Through collaboration, the fintech industry can reshape traditional finance companies, unravelling a reformed, efficient and secure financial future while enabling a customer-focused approach leading to accelerated future business growth.

Digital technology has transformed the finance industry by enhancing the customer experience, improving operational efficiency and reducing overall costs. AI, big data analytics and automation are top trends reshaping the finance industry. There are challenges, however, including regulatory compliance, outdated tech systems, security, the demand for talent and the potential risk of losing connection with personal banking.

Digital banking today has transformed our personal experience with our finances. From mobile payments to AI-driven technology, the finance industry is rapidly changing. The traditional banking system has carved a new path to a more accessible digital banking model. Customers can access their accounts, transfer money and pay their bills from home or via their smart devices. This movement towards digital banking has enhanced the customer experience and improved overall business operations. Digital technology has allowed banks to improve security measures and prevent potential fraud cases. Digital technology will continue shaping the future of finance.
Enhancing the customer experience and business operations

Industry transformation is supported by several factors, including improved customer experience, increased efficiency and reduced costs. The rise of fintech businesses and changing demands of customers have played a critical role in driving digital transformation in finance. Furthermore, regulatory changes and tech advancements have made it easier for finance businesses to adopt digital solutions. The increased use of mobile tech and the Internet has also supported further growth in digital banking.

The shift toward digital technology has transformed traditional finance practices. It has enabled new businesses to emerge, offering a range of advantages to the finance world. It has improved the overall customer experience by providing accessible services for all. Digital technology has also increased operational efficiency for finance businesses by creating quicker transactions and reduced costs.

By recognising the advancements, you can make informed decisions about which finance businesses to work with and which technologies to adopt to manage finances effectively.

Navigating the digital finance scene

The digital finance industry is rapidly evolving, and finance companies must remain in touch with the latest trends to stay competitive. Many benefits have emerged with digital tech, but there are also challenges finance companies face when adopting digital solutions. One of the main challenges is related to regulatory compliance. Finance businesses must meet a range of regulations and standards when implementing digital technology to ensure complete security and privacy of customer data. This process can take time and requires considerable resources.
A secondary challenge is legacy systems, with many conventional banks relying on outdated IT systems incompatible with today’s digital solutions. Upgrading these systems can be expensive and time-consuming, blocking the potential adoption of digital technologies.

Cybersecurity is a major concern when implementing digital technology in finance. Businesses must ensure their systems remain secure and protected from potential cyber-attacks. Furthermore, there is a need for skilled talent capable of managing and maintaining new digital solutions. This requires additional investment in training and development plans to ensure employees have the skills to work effectively with new technologies.

Finally, there is a risk of losing the personal connection in finance as more activities move online. Financial institutions must find ways to balance the accessibility of digital banking with personalised customer service to keep customer loyalty. While there are challenges in adding new digital services, finance companies must discover ways to alleviate these concerns to remain competitive in a digital future.

As finance companies slowly transition from physical branches, it will become more important to balance the convenience of digital banking and the personalisation that people demand. While online banking has become very popular, many people still want personal interactions. To address this, emerging technologies like AR and VR may provide solutions to connect the gap between digital accessibility and personalisation. Utilising emerging technologies may enable us to strike a balance, improving customer satisfaction and loyalty. As finance moves closer towards a digital transformation, it’s critical to remember the value of personalisation. Augmented and virtual reality provide a solution to connect digital and personal services. Incorporating these types of services will create an experience that provides customers with more insights into financial products and services.

We are embarking on a new transformation journey and should embrace the power of tech to deliver a promising future for finance. By using digital technologies, banks can transform how they support their customers. Innovation and digital disruption are vital to generating new opportunities and exceeding customer expectations. Finance companies must keep close to emerging trends and provide more convenient and accessible services to their customers and deliver an enhanced finance experience.

Finance leaders envision a future for the industry that is digital, scalable and data-focused. CFOs must reshape the digital aspect to be capable of attracting and retaining the next wave of talent in finance.

Planning for AI

CFOs have bold plans to enable the future vision of autonomous finance, An AI-driven finance service that delivers data when requested, is scalable, digital and capable of solving complex problems. To support these plans CFOs are transforming business structures, roles and skills to create a place where AI and digital talent can progress. By 2025, 40% of finance roles will be new or significantly altered due to the influence of financial technology.

With over 70% of finance, leaders expected to increase AI staffing, the demand for AI talent will inevitably increase, along with pay expectations and time to hire. CFOs planning to stay ahead of the competition will likely focus on developing digital skills, enhancing their finance IT talent and improving financial data literacy.

With increases in AI and staffing, efficiency will also rise, creating opportunities for finance to influence business strategy, data reporting and compliance. From an accounting perspective, AI models have decreased reconciliation time and have improved error detection. For financial analysis, leading companies are implementing AI to generate cash-flow forecasts. These developments will enable finance teams to allocate their time towards more specialised functions and allow automation to handle more routine tasks. The challenge, however, is the lack of talent. Studies suggest that two of three finance leaders believe the digital skills gap is increasing.

Delivering Core Competencies

A business lacking digital capabilities will keep a finance team from utilising the potential of autonomous finance. Finance can allow teams to work more efficiently, creating valued insights and investing in digital skills. Utilise these technologies requires:

Technological literacy – using digital tech to generate better outcomes for finance and the entire business
Digital Translation – the ability to recognise how digital tech connects with finance and associated processes and systems.
Digital learning and development – the ability to implement new digital learning requirements within a new learning environment.
Digital bias management – understanding and articulating bias in machine learning and managing the risk of this.
Digital ambition – the motivation to embrace technology and implement new ways of working.

A shared belief among finance leaders is that skills in core digital require considerable technology-based skills, knowledge and abilities. Studies suggest that over 60% of finance leaders believe their teams cannot effectively use digital technologies, and only 23% of finance leaders consider their teams proficient with these five digital competencies.

Successful CFOs expand digital skills by educating finance staff on these competencies and ensuring finance leaders display examples of how these competencies look to the team in their organisation.

Nurturing AI talent

Whether a business is upskilling its existing talent or looking to recruit, CFOs must significantly reconsider the finance employee value proposition and the culture to attract and retain the best digital talent. Top AI talent must feel a strong sense of belonging within the finance function. Despite a rise in digital talent within finance, CFOs may consider old assumptions about this talent’s work preferences which can impact the overall success and potential attrition of digital finance talent.

CFOs can nurture the best talent by supporting a work-life balance to avoid potential burnout. According to studies, digital finance talent often prefers to work on their own time. Over 60% of digital finance talent claim to do at least 20% of their work outside of normal core working hours. Successful CFOs will view the benefits of offering flexible hours, including improved engagement and productivity. Furthermore, digital finance talent like collaborating with others, opening the opportunity to increase productivity by combining digital with core finance talent.

Discovering the best data science talent is critical to developing an AI-focused finance business. CFOS must take a ‘build it, and they will come’ strategy, building an organisation defined by innovative analytical tools, valuable data, clear learning opportunities and a structured career pathway.

The latest Women in Finance report highlights how the finance industry is making positive changes toward increasing female representation in senior leadership roles in finance.

The report suggests that the average representation of women in senior roles increased to 35% in 20222 and that nearly three-quarters of signatories increased the number of women in senior management positions. Furthermore, the report suggests businesses are progressing toward their goals, with half setting a target of reaching 40%.

The HM Treasury introduced the Women in Finance Charter in 2016 and has published a review of the progress annually in partnership with the think tank New Financial. Certifiers of the Charter must declare their progress to the Treasury against their independent targets for women in senior management roles.

Overall this year’s report was very positive, with the main headlines including:

• Average female representation increased to 35%, indicating an improved picture for Charter signatories, as this number remained at 33% in 2020 and 2021.
• 77% of signatories have either increased (71%) or maintained (6%) their proportion of women in senior management.
• Signatories’ targets are rising, with half (50%) setting a target of at least 40%.
• Of the 73 signatories with a 2022 deadline, 44 hit their targets, and the remaining 29 missed, down from 31 in 2021. Of the 29 missing, 22 were close – within five percentage points or five appointments of hitting their targets.
• For the first time since the Charter’s creation, the top quarter of firms (52) have achieved at least 40% female representation in senior management. 

Source: Women in Finance Charter Report gov. uk

In response to the report, Treasury Lords Minister Baroness Penn stated that the results were very positive and that the signatories have shown commitment to delivering on this agenda by utilising data, setting targets and working to develop and inspire the next generation of leaders. Baroness Penn believes the report should indicate progress and remind us to stay focused. Penn wants to ensure the Charter remains a tool for maintaining competition, innovation and productivity. 

Amanda Blanc, CEO at Aviva and Government Women in Finance Champion, explains that the results are encouraging but believes we must continue progressing to ensure lasting changes. It’s positive that leaders are accountable for diversity in their business and that data is used effectively to support this issue.

Blanc highlights that a quarter of businesses now have 40% of women in senior management roles. While this is promising, we must continue to do more to ensure we improve the rate of change to achieve permanent acceptance of women in finance. Yasmine Chinwala, partner at New Finance and the lead author of the report, believes the progress is evidence that the principles of the Charter work. They encourage businesses to focus on the challenge of female representation like other strategic areas, with a target, progress and accountability. 

The data suggests that more businesses are discovering the connection between diversity targets and pay is making a difference, with over 60% reporting that the link to pay has been effective. Creating this link to pay means diversity is increasingly recognised as a business issue rather than an independent or voluntary issue managed by D&I teams.

Industry leaders are exploring how analytics is impacting the finance industry, creating opportunities and new challenges. In a recent discussion referred to as the analytics of finance, representatives stated the risk of potential new frauds and that if regulators fail to embrace analytics in the future, fraud cases will get bigger, persist for longer and be more challenging. According to financial leaders, some of the biggest fraud cases happen due to complexity, and financial markets are getting increasingly complex.

The discussion explored the importance of analytics, AI and Machine Learning as providing valuable pathways for solutions to every challenge faced. Investing in technologies like analytics is one of the most effective ways to tackle financial crimes. JP Morgan invests $12 billion every year in technology, and the entire financial sector may have a total annual outlay in the region of $100 billion. The critical area to focus on is efficiency, which means embracing data and analytics to determine potential barriers or challenges. 

As financial crimes become more sophisticated and challenging to detect, regulators appreciate the power of analytics and are embracing new technologies. Recognition of these tools is moving into education, with more institutions training for data and quantitative analysis. The use of analytics in finance has also delivered other benefits, such as growth and new efficiencies to markets and increased access to financial products, levelling the playing field for others. Analytics has a valuable and growing role beyond its traditional focus. On the high street, we see more efficient capital budgeting due to data utilisation. In households, we’re experiencing better budgeting, retirement savings and credit usage due to the democratisation of data, innovation and fintech. Within capital markets, analytics is exploring new uses, such as machine learning to develop predictive business models. Data and predictive models are being utilised for due diligence in mergers and acquisitions and capital-raising activities. Practitioners have seen positive results in terms of better accuracy and improved benefits to shareholders. Analytics could provide critical to meeting ESG values. Analytics with satellite monitoring could tackle greenwashing, and technologies like infrared imaging could monitor and verify emissions at various units. These methodologies would support investors assign capital to businesses embracing their values. 

Finance leaders explain that we need to consider data and analytics as an investment. Looking toward the future, the top challenge for analytics is related to data ownership, where people can control their personal information. On the other side, analytics will create innovative, custom financial planning for people at better costs, helping individuals make more informed decisions. Businesses, small and large, will also find more uses for analytics in other areas like capital budgeting and resource allocation. 

In a progressive field like analytics, it’s vital to determine between technology-related and human failures. To begin with, informed individuals that understand the technology, data and analytics make a huge difference. 

The responsibilities of the CFO in supporting business development have changed considerably in recent years. A report by McKinsey this year indicated that the role of a CFO is expanding rapidly.

The responsibilities of a CFO have transformed to include critical business processes. In recent years, the position has shifted toward embracing broader responsibilities such as risk management and business strategy. The role expands beyond the traditional areas to new fields such as innovation, digital transformation and culture.

Today’s CFO work with the CEO, establishing the business strategy and managing change. The range of functions connected to the CFO provides them with a vital oversight of the business and a deeper insight into the strategy. Innovation has become a critical asset of a CFO. A CFO understands how to balance creativity and financial expectations with new decisions. Concepts need to be tested and validated before implementing change and expecting progress.

The pandemic has reinforced the value of a good CFO by showing that the experience and skills of finance stretch beyond data processing. As we navigated the impacts of the lockdowns and other restrictions, forecasting cash flow became critical in ensuring a business survived, and the skills of the CFO and their supporting finance team proved vital in carrying companies through this period.

Most companies have managed to move through this challenging period and are now exploring ways to innovate and expand. This involves researching new concepts, whether introducing new tech or acquiring another organisation. The role of the CFO has once again proved pivotal in this new phase of innovation.

The role of a CFO provides more than just a reporting function. The CFO has a critical understanding of the business, as they see valuable data across the entire company and can transform data into clear and structured information. CFOs are skilled in applying advanced systems and analytics to create valuable insights into how business functions and the possible impact certain decisions could have on overall performance. An experienced CFO can determine what success looks like, critical KPIs, the required resources and the potential outcomes.

This type of information supports senior leaders in making informed decisions. It may support a final strategic decision or encourage them to invest in new technology. Whether you have an in-house CFO or hire externally, it’s evident that the modern CFO has more responsibility and influence on the overall success of a business and consists of a broader skillset to ensure companies can continue growing.

At the recent Sibos annual conference, digital innovation was pinpointed as very significant for financial inclusion. Sibos is an annual networking event delivered by Swift for the financial industry. Beginning as a seminar in 1978, the event has developed into a leading forum for the global financial community to explore and collaborate in areas of payments, securities, cash management and trade. This year’s conference agenda prioritised progressive finance for a changing world, with over 500 representatives discussing areas such as supporting the digital landscape to manage uncertain times and promote sustainability.

At the event, digital innovation was discussed as holding tremendous promise for financial inclusion and financial health. The underlying theme of the conference was focusing on progressive finance in a changing world that could not come at a more critical time.
There has been significant progress in the last few years, with approximately a quarter of the global adult population having secured access to financial services. More adults are included in some manner, enabling new opportunities for millions of previously disconnected. Investment in vital digital infrastructure, including enhanced connectivity, has delivered the foundations for further development. The rise of digital payments has spurred a considerable increase in account ownership. In the last few years, nearly 40% of adults in developing economies opened their first account to receive a wage or a government payment. Furthermore, millions of small merchants are either paid or make payments via their phones. This has enabled financial service providers, particularly new fintech players to be more innovative in the delivery of new products. The rise of mobile activity and new customer data channels by leveraging big data and AI means more creative and innovative ways to deliver financial products.

With every new technology, such as digital currencies, we must remember to focus on the problem, the solution, and what future we are visualising to enable long-term success. The conference message discussed that one of the priorities is ensuring innovation doesn’t create harm but delivers key digital services, like cybersecurity and digital literacy, that can support marginalised communities to manage their financial services safely and efficiently. Fairer competition and innovative payment systems were also discussed, as supporting markets work better, including for small-scale customers, but this was considered only the start, and there is the opportunity to move beyond not harm to implement positive changes.

Representatives at the event explained innovation shouldn’t happen just to maximise short-term returns. Instead, we should focus on the value generated in the long run. The value of customers translates into value for firms. Members were asked their opinions on managing their finances, planning and meeting future goals during periods of disruption and building further resilience. All of these factors were considered good business sense since financially healthy customers are better customers, and businesses that can provide these services differentiate themselves from others.

For the moment, only 55% of adults in developing economies can access emergency money within 30 days, and another study indicated that nearly half of respondents from OECD nations have no money left at the end of the month. In some areas, we have witnessed an increase in access to finance and, at the same time, a decline in financial health. We must determine the best solutions to these challenges and bring them to scale. Focusing on finding an approach to solve the reduction in financial health could be through encouraging partnerships that provide services within the entire value chains. Collaboration across the industry and government is critical to creating an inclusive digital infrastructure that enables services beyond finance, like health and education. These represent the foundations of sustainable development. If this is managed correctly, digital innovation holds great potential for financial inclusion and financial health. We should focus on a better future with shared experiences and use events like this to deliver a more secure, trusted and effective digital future that works for everyone.

A few months ago, one of the most established banking businesses n the world – Lloyds Bank, confirmed it was joining the likes of Google and Uber by delivering a new role – Group Head of Data Ethics. The new position is mainly responsible for the moral and legal obligations for collecting, measuring and protecting significant volumes of data available at Lloyds Bank.

The job posting focused on promoting, embedding and commercialising data and analytics and the culture within the business to drive a data-enabled organisation. If data is the focus to drive business insights, AI is the accelerator that will power this process forward, generating new solutions quicker than previously possible. Conversely, using AI automation on scale without a data ethics representative in a highly regulated industry like finance is similar to beginning a journey without having a map, lacking direction or the ability to shift their course.

The pressure of audits, compliance checks, detailed processes and meeting standards in the financial sector all influence overall success, not just in terms of avoiding regulatory fines but reducing any possible legal implications due to data errors. The challenge comes when the rate of data creation exceeds the ability to process it efficiently.

To appreciate why data ethics is so important, we need to understand the role data has in the finance sector. Combining the complexity and volume of data created today, this surge of information rapidly outpaced the original systems and processes needed to analyse data efficiently. Traditionally, compliance and regulatory processes were managed manually via static spreadsheets. Today, these processes are being streamlined through advanced analytics, making the technologies more accessible and approachable. Analytical automation is a solution to refine large volumes of data effectively and convert it into clear, actionable insights.

Two main tools used within the finance industry are business process automation and automated insight generation from data. Process automation is the ability to take a selected activity, such as extracting data from its source and combining it with data from other areas, and automatically delivering reports. This process generates several benefits for compliance and regulatory requirements and significantly reduces report generation with nearly no errors. These results happen through repeatable, transparent and verified processes completed the same way every time.

The second tool is applying AI for decision-making. AI can determine patterns within data sets to identify fraud or money laundering of specific factors, impacting the ability of an applicant to repay their mortgage. The speed and accuracy benefits that come with automation mean this technology is quickly becoming a vital part of modern finance. The challenge is relatively simple – we alone cannot maintain pace with the continued flow of new data, nor the analytical systems required to make sense of it.

Alongside the rise of new information and an increased focus on compliance and efficiency comes an increased need for humans required to understand and manage that process from end to end. This process requires acquiring the necessary knowledge to deliver the datasets and the correct governance measures to facilitate and improve data quality. Under the GDPR, the requirement for explainability in these processes has become mandatory. Finance businesses, especially those larger established organisations, contain significant sets of valuable data with the incentive to utilise this information. However, the sensitive side of this financial information, creating data standards, and an ethics framework must be the focus before developing these areas. An ethics leader, someone responsible for maintaining human benefit and ethics lies at the core of AI innovation, is a critical part of delivering growth and generating the value expected from AI automation.
Instead of assuming AI will deliver the best insights, it’s critical to understand how and why the results are as they seem. Focusing on this ethical approach and ensuring wider adoption is vital to the role of an ethics leader.

While AI can perform many tasks without human involvement, it is critical that those creating, operating and making the decisions completely understand any potential errors before AI replicates them. With the ethical and governance-based foundation, finance teams will potentially automate bad decisions faster. Training, testing and continuous monitoring and vital to success. Training data applied to AI systems must not include bias to ensure no bias is replicated at a later stage.

While ethics professionals must manage the best possible practice, ethical AI requires a holistic approach to data literacy and ethics. These go together when creating and implementing assured AI, capable of supporting and complimenting human capabilities. A recent study by Alteryx discovered that 42% of UK employees responsible for data work saw data ethics as irrelevant to their role. The reality is, however, that data integrity and transparent decision-making are critical for any success in AI-focused insight generation.

Payments provide a perfect entry point for software platforms into financial services. A relationship with payments creates data, trust and in most cases, further banking requirements. This provides the opportunity for software platforms to create a range of embedded finance options to increase their revenue, and improve the user experience and customer retention. Any software service offering payments should incorporate a focus on the long-term opportunities in finance.

Software platforms have a clear understanding of the performance and sales of customer businesses. This enables software platforms to make better decisions and allows them to design other opportunities and enhance customer growth. For example, software platforms could design integrated expense reporting services within their package, providing an additional opportunity to generate revenue.

As software platforms progress toward embedded finance, creating a money management product can convert the service into a complete financial operating system. This involves enabling customers to receive sales deposits, add funds and make payments. Combined with a card product, the account acts in a similar way to a conventional bank account, enabling customers to make transactions and withdraw money from their accounts. Furthermore, software platforms can generate interest revenue and interchange revenue, as well as receive regular reports on their finances. For example, Shopify Balance, in partnership with Stripe is considered one of the best options available. Launched earlier this year Shopify claims that thousands of merchants are now using the service.

As software platforms progress further into embedded finance, it’s clear that there are opportunities to expand into other areas. Insurance, purchase financing and payroll are all examples which could be explored. The main factor software companies must consider with the move toward embedded finance is improving the financial lives of their customers.

Instead of highlighting the competitive landscape between emerging fintech and traditional banks, there is the potential to collaborate and generate more value. The fintech industry is accelerating innovation in finance industry, but many startups’ progress is hindered by strict regulations, data privacy and security concerns. Many traditional banking institutions are beginning to partner with fintech companies to expand and accelerate their digital plans.

The digital drive is forcing established banks to move from legacy systems to innovative solutions. It’s unlikely that fintech companies can take the stronghold of the market, but traditional banks will have to determine whether they decide to introduce their solutions or partner with fintech companies to maintain the edge over other competitors. If customer expectations continue to rise and demand the types of products and services offered by fintech startups, incumbent finance companies will have to find a solution to deliver new products or collaborate with those that can.

How fintech represents innovation in business

The rise of fintech has caused many finance leaders to adapt their core focus concerning data and digital platforms, utilising data and new services to enhance efficiency and security. Open-source software, SaaS and other architecture have become critical for tech and finance organisations exploring fintech services.

Technological progression and innovation are critical parts of fintech development, and they will likely continue to disrupt business activities within the financial industry. Many traditional finance businesses have been encouraged to be more creative as fintech companies promote new and innovative digital features and continue to gain further popularity across the financial industry.

Fintech represents innovation and is why many traditional finance companies struggle to maintain pace with new trends continuing to disrupt the industry. While fintech companies have the agility and a customer-focused approach to deliver more flexible solutions and a better user experience, the traditional banks have the size and experience, which translates into consumer confidence. Fintech expertise is often used by finance companies to improve and automate procedures and create detailed insights into their clients.

The range of fintech developments has expanded to payments and investing in new business models like blockchain, insurance-tech and data-driven marketing. The finance industry is experiencing a significant transformation on a large scale, predominantly due to technology: cloud computing, big data, robotics and artificial intelligence, and the shift in virtual and open banking and fintech. Product and software management, cyber security, customer experience, and data analytics are skills required not by just the fintech industry but also by any technology business.

There are many benefits that could transpire from a partnership between corporates and fintech. The integration of technology and greater access to data generate better compliance, security and lower privacy risks. Open banking enables third parties to create products and services around the offerings of a financial business. This collaboration would extend the potential of ecosystem-based finance, where banks and other finance companies can work with non-financial companies to create a seamless customer experience.

Finance integration has been a growing trend in the last year, with many finance companies looking to be providers to non-banks and non-financial groups looking to deliver a customer experience or service involving financial products as part of their offering. As the demand for rapid financial transactions has increased, banks and other financial businesses have been integrating fintech products within their standard practices. The ultimate purpose of fintech, aside from its focus on innovation, is to adopt technology to provide customers with financial requirements and deliver the best experience.
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