Category Archives: Office

The Role of Humans in Fintech: What You Need to Know

The Role of Humans in Fintech: What You Need to Know

Fintech products offer major benefits, which is why they’re so popular. By handling many tasks that a person might otherwise handle, they streamline financial transactions, analysis, investing, and other processes. Being able to complete essential banking tasks via an app is a lot easier than traveling to a branch and waiting for a teller to be available.

That said, some people may be concerned that the rise of fintech will make humans obsolete in banking and financial services. They also fear that financial institutions will no longer offer the personalized, human touch that technology simply can’t provide.

These are understandable concerns, but that doesn’t mean they’re accurate. Fintech will not make humans unnecessary to banking and financial services; it will simply shift their roles. The following examples illustrate how.

Improving Partnerships

High-level executives and managers at financial institutions often benefit when they collaborate. Sharing ideas and strategizing together results in everything from improved customer service techniques to new product ideas.

partnership

Unfortunately, many don’t have the time to collaborate as frequently as they should. That doesn’t need to be the case. McKinsey Global Institute estimates that financial managers spend as much as 34% of their time on tasks that could be automated with technology. The extra time fintech products provide could instead be devoted to working with teams to solve business problems, recruit better talent, and improve overall management methods. Everyone from executives to lower-level employees can benefit as a result. More collaboration could also benefit customers in the form of better service. This would be a clear example of fintech actually making financial services more people-friendly.

Teaching Soft Skills

Successful professionals in the financial services industry often point out that developing and maintaining positive relationships with colleagues and clients is essential. They understand that spending time interacting with others provides them with “soft skills” that translate to better professional relationships in general.

This is something machines cannot offer. Although AI may be able to represent the branded “personality” of a business, it can’t (yet) learn to relate to people on a genuinely emotional level. This is particularly good news for older employees in this sector who may be concerned about the rise of fintech.

Boomers are retiring. Millennials are taking over the workforce. Generation Z isn’t far behind. However, Millennials and members of Generation Z don’t have decades of experience working in their given fields. They haven’t had the same opportunities to develop soft skills as those who have been in the workforce for longer periods of time. In addition, members of younger generations may not have had the same opportunities as older generations to develop good “people skills.” Since technology has reduced face-to-face communication, young people simply don’t have the same opportunities as previous generations to refine their emotional intelligence and improve other soft skills—particularly in professional circles outside their families and friends.

The situation makes older finance professionals strong assets to the companies that employ them. As younger employees begin to replace retirees, they’ll need help learning how best to establish and maintain good relationships with customers and colleagues. In addition to their considerable technical knowledge, older employees provide value to companies because they can offer a more people-centric perspective in a tech-centric world.

Understanding Customer Needs

Many professionals in the financial services industry must divide their time between customer-facing tasks and behind-the-scenes tasks. The more time they spend behind the scenes, the less time they have to truly get to know their customers.

Fortunately, fintech can provide a solution to this problem. For instance, consider fintech’s growing role in wealth management. Identifying quality investment opportunities for clients typically involves analyzing large amounts of data—and the more data, the better. This can be a time-consuming process, but an AI program could analyze huge streams of data 24/7, all while doing so far more efficiently than a human ever could.

customers

Still, the advisor plays an important role—one that may actually become more important thanks to AI.

While AI can analyze data, it can’t get to know a client on a personal level to help them articulate and prioritize their specific financial goals. Humans can also distill the sometimes-overwhelming amounts of data AI can yield, translating raw numbers into meaningful information that clients can understand. Furthermore, AI can’t develop a long-term relationship with a client based on mutual trust. That’s absolutely essential to many financial services, including wealth management.

With AI handling data analysis, wealth management advisors can spend more time helping clients interpret this analysis and use it to make better choices. As a result of spending more time with clients and offering them more insights, wealth management advisors can boost overall customer satisfaction and trust.

These are all points to remember when considering whether technology will ever replace humans in the banking and financial services industries. Again, although it’s easy to understand why someone might have this concern, closer examination shows that fintech will actually improve the human element in financial services. That’s one more reason to embrace it.

How Financial Institutions Will Benefit from Fintech: What You Need to Know

How Financial Institutions Will Benefit from Fintech: What You Need to Know

When discussing fintech, it’s common for experts to focus on how this technological revolution will impact the overall relevance of banks and other traditional financial institutions. Some argue that banks will no longer be relevant in a short time. Others suggest that banks can partner with fintech firms in order to survive shifts in the… Continue Reading

This Is How Fintech Will Improve Healthcare for Everyone

This Is How Fintech Will Improve Healthcare for Everyone

Fintech products succeed because they offer users clear benefits that extend beyond simplified and convenient alternatives to existing financial services. In fact, it’s becoming increasingly clear that fintech can dramatically improve the lives of people throughout the world. As this blog has previously pointed out, fintech-based lending companies are helping small business owners access the… Continue Reading

This Is Why Wall Street Is Embracing Fintech

This Is Why Wall Street Is Embracing Fintech

As anyone who is following the fintech revolution knows, companies offering alternative financial services are thriving for many reasons. Primarily, they provide a degree of convenience that traditional financial institutions often can’t match. That’s why Wall Street is starting to take notice. While this blog is by no means offering investment advice (you should consult… Continue Reading

Why All Business Owners Need to Know about Fintech

Why All Business Owners Need to Know about Fintech

Financial technology, or fintech, while fairly new to the world of financial services, has already had a noticeable impact on the world economy. While fintech affects virtually everyone, there are some people who should pay more attention to it than others. Eventually, everyone will benefit from the improvements that technology has made to typical financial… Continue Reading

This Is How Fintech Is Expanding Job Opportunities for Young People

This Is How Fintech Is Expanding Job Opportunities for Young People

Fintech offers many benefits to people with limited access to financial services. That’s one of the reasons why it’s so popular in developing and emerging markets. Fintech not only makes it easier for everyone to take advantage of banking and investing services, but it also provides young people in these countries with employment opportunities that… Continue Reading

This Is How Banks Are Using Fintech to Succeed

This Is How Banks Are Using Fintech to Succeed

As this blog has pointed out before, traditional banking institutions can’t expect to survive while continuing to serve their customers in the same outdated ways they always have. The fintech revolution has provided consumers with alternative financial services that offer greater efficiency, convenience, and flexibility. It’s unlikely that customers will ignore these benefits simply out… Continue Reading

This is How Fintech Will Help Your Business Thrive

This is How Fintech Will Help Your Business Thrive

Many people refer to the current rise of fintech as a revolution, and for good reason. Technologies are being developed rapidly, startups are emerging at the speed of light, and consumers throughout the world are embracing the solutions these alternative financial services offer. It’s easy to get caught up in discussing the technology and its… Continue Reading

4 Fintech Trends You Need to Watch in 2018

4 Fintech Trends You Need to Watch in 2018

The fintech industry experienced strong growth in 2017. More startups were acquired, Bitcoin rose in value, and consumers gained access to more services. The financial revolution shows no signs of stopping. It’s reasonable to expect that 2018 will be yet another big year for fintech. Those who wish to follow the industry’s development should pay… Continue Reading