It is the ideal time to explore and set forth trends for the upcoming year since the new era has begun. In the past decade, technology has revolutionized itself and we can already see how 2020 has set off a wave of eminent trends and innovations in tech, which may expand your excitement for future technological growth in 2021.
Furthermore, recently emerging financial trends were properly embraced last year, and as such, a decision was made to implement them in a more effective manner that will ultimately serve their respective clients even more effectively and provide even greater value to them.
The phrase Regulatory Technology (regtech) cannot be avoided when talking about fintech and digital transformation, since it helps businesses to control innovative software for identity management, compliance software, regulatory reporting, transaction monitoring, and risk management.
Regulation technology is primarily used by financial technology companies across all the jurisdictions in which they operate to onboard customers fast and in compliance.
Despite this, according to forecasts, the most important technology trends for 2021 are going to be regulated technology, cloud technology and productivity solutions.
In 2020, a wave of swiftly deployable solutions released financial services firms that were dependent on face-to-face business interactions and needed to be able to onboard clients remotely. In order to overcome the challenges of implementing solutions on a cost-effective, effortless process and simple to use basis, we will continue to face high challenges through the year 2021.
Regtech solutions for ID and verification (ID&V) allow you to take selfie videos and photo IDs, and then certainly verify whether the information is accurate. Using it, an individual can verify their identity by matching their selfie video with their real images, authenticating their documents, and confirming they are still alive.
By 2021, customer lifecycle management (CLM) regtech will be regarded as the go-to platform for the entire enterprise. It operates the client from beginning to end, incorporates automated workflow processes with Identity and verification (ID&V) solutions, provides rule-based logic, utilizes qualified electronic signature (QES) technology along with integration with management systems.
The platform continuously monitors and measures clients from the point of inquiry, through onboarding, service delivery, and offboarding, thus improving review risk.
Artificial Intelligence (AI) is transforming due diligence reports and will further eliminate risks from business resolution in 2021.
People are woefully unequipped to manage and create effective due diligence reports on their own. As a result, artificial intelligence came to the rescue, providing insights almost immediately. By leveraging machine learning and natural language processing, leading suppliers are able to interpret unstructured data sources in any language, recognize local colloquialisms, and recover insights in a variety of languages (a departure from the usual routine of exploring English structured data today).
As businesses witnessed a limited shift in achieving this from implementing new software, hardware, and cloud infrastructure, they agreed that there is a need to fully digitize their processes.
This project reduced the operation costs, assisted organizations in establishing a cloud infrastructure for delivering information in the right location, and provided the necessary enhancement of data security.
In the next year, we'll observe stragglers move from legacy infrastructures toward cloud-based offerings while improving their capabilities using productivity solutions.
In recent years, robotic process automation (RPA) with the best learning system around the globe has become the norm, especially in the delivery of repetitive tasks such as data input, data management, prioritization, account reconciliation, report automation, document digitization, and testing.
Moreover, it supports businesses by reducing fraud, processing errors, and payment discounts in a cost-efficient way. This technology is adopted mostly by integrating with optical character recognition (OCR), which enables rapid document search by transforming images into text.
This element of RPA will be implemented by mostly all firms based on the ‘project by project basis.
Through Advanced coaching systems, productivity will be enhanced. Even though satisfying, training individuals can be a bit tricky and a continuous activity for leading employees utilizing high-performance teams.
Once the employees quit the business, all the process including transferred information, team performance declines and the cycle of transfer begins over again. The presence of insightful narrative created into the software will assist any employees to accomplish tasks with self-confidence and precision.
Still, there are lot more trends to observe in 2021 – trust company client portals, mainstream interpretation of blockchain, the extensive implementation of Integrated Management System (QES), and cryptographic forensic investigations. These all will be responsible for transforming business operations in international finance centers.
In spite of uncertainty about how much disrupting technology will be in the years ahead, companies have already adopted, embraced, and valued technology for another four years before 2021.