Like many other industries, the tech industry within London is undergoing huge changes thanks to the latest software and technology. From artificial intelligence, blockchain technology, open banking to big data analytics, there’s a lot to consider when it comes to the latest financial services. London in particular is taking many steps to integrate and make use of such technologies.
Faster payments
One of the major advances that has had an impact on London’s financial industry, is blockchain technology. Initiated with the arrival of Bitcoin, the blockchain is the major component on which Bitcoin, and other cryptocurrencies are based. It means that crypto is a decentralised currency, which means that it is not impacted by banks and offers more tamper-resistance compared to other currencies and payment methods.
London, specifically, has already become a hub for entrepreneurial endeavours and investors all looking to create blockchain startups. Part of this isn’t just for cryptocurrencies though, but to also create multifaceted applications. This means that Know Your Customer protocols can be leveraged through such systems, used by financial institutions to greater effect in reducing fraud. Not only that, but adopting blockchain-based systems allows London-based financial institutions to operate international transfers in a more cost-effective manner. In turn, this helps to put London as a top financial hub.
Data insights from AI
Another major step forward in technology is the arrival of artificial intelligence or AI. AI has become a cornerstone of crunching data and is used in London’s financial sector on a regular basis. It’s able to process data a lot faster than other methods, and can aid in decision-making as well as customer interactions and risk assessment. What this means in the financial sector is that algorithm trading is made even easier. It’s changed the way the that stock exchange works, with London’s traders relying on specific algorithms when conducting trades. Using AI in this manner is incredibly useful as it is able to perform trades with speed and make use of small market fluctuations that might get missed by the human eye. As mentioned, AI is also great when it comes to risk management, and able to perform better assessments for more precise decision-making.
Further to this, AI has made customer service across a range of different sectors much more accessible. For instance, there are chatbots and virtual assistants in place across almost all platforms, not just those operated by financial institutions. These chatbots are increasingly commonplace and allow customers to get access to aid quickly. While they can’t always get the full response to their queries, they’re often pointed in the right direction very quickly indeed.
Becoming more open
Finally, there is the arrival of open banking to consider. This has changed the way traditional banking occurs. This method of banking means that banks and financial institutions are encouraged to share their customer’s data in a secure manner with third party developers. One such option is Trustly, which offers an intermediary service between sellers and the bank. This means that customers using one of these intermediary, open banking services does not need to provide any banking details to the site they are purchasing from.
For instance, Trustly casinos UK are able to offer this type of speedy payment, without the need to collect any sensitive information from the customer. This helps to make the player more secure in playing at the casino, as well as happier with the more transparent nature of the open banking service. Within London, this is easily done, as there is a strong ecosystem in place specifically designed to ensure that there is regulatory support for such services on both sides.
It’s not just the fact that banking is becoming easier though, but also the increased number of fintech collaborative options, too. Not only are there apps and services making it easy to make transactions, but also apps dedicated to budgeting, improving financial literacy or even using alternative data options for improved credit. Throughout all of this, London remains a hub of activity, with plenty of new innovations changing the way the fintech industry operates. It’s likely that soon there will be more new innovations on the horizon as startups and businesses strive to ensure they are at the forefront when it comes to providing the best financial services.
