FinTech or Financial Technology is a term used to describe financial technology. While understanding of FinTech according to Otoritas Jasa Keuangan (OJK) is an innovation in the financial services industry that utilizing of technology.
Basically, FinTech is used to help companies, business owners, and consumers to manage their finances better by utilizing digital technology. Some examples of services are provided such as crowdfunding platforms, mobile payments or m-banking, budgeting apps, and many more.
Use of RPA (Robotic Process Automation)
RPA (Robotic Process Automation) can be defined as a technology that utilizes a system to automate tasks normally performed by humans. This technology combines robotic automation with artificial intelligence (AI) to handle repeatable tasks. By using this technology, a company can save money and improve the efficiency of work.
By 2021, it is expected that more companies or financial institutions will adopt the technology. The tasks that can be done by this system are quite diverse such as helping the process of opening or closing accounts, managing audit requests, assisting the insurance claim process, and others.
The next development of FinTech is the increasing number of digital-only banks. This service is quite widely found in Indonesia. Examples include Jenius, Digibank, and TMRW Digital Bank. Today, digital-only banks are becoming one of the popular trends in the FinTech world. The bank will provide all its banking facilities online without having to provide branches or physical offices so that customers do not have to queue and provide various documents to open savings accounts.
With a digital-only bank, customers only need a PC or smartphone connected to an internet connection to manage their finances. When compared to conventional banks, this digital bank has several advantages, namely: much more flexible usually offers innovative services at a much lower price more practically used for online transactions have many interesting features Because it is provided digitally, then this bank will provide good security in its system. Usually, they will use 2 factors authentication and a fingerprint sensor in the system.
Using Artificial Intelligence
There will be more banks or financial companies that will use Artificial Intelligence (AI) in their companies. In the financial industry, AI can be used to check cash accounts, credit accounts, investment accounts to see one’s overall financial health, and much more. In addition, AI technology can also help detect cyberattacks by identifying fraud as well as financial threats. With these capabilities, the use of AI is believed to reduce operational costs so that companies can save more on expenses.
- Cyber Security System Enhancements
Maybe you’ve heard of several cases of hacking that caused data leaks on digital banking platforms in Indonesia. The threat of cyberattacks can occur on a daily basis to exploit vulnerabilities that exist in developed technologies. That is why improving web or application security systems will always be the concern and priority of companies that provide Fin-tech services.
To improve the security system within their platform, companies must implement various security protocols, one way is to use biometric security. Biometric security is a device used to capture biometrics for verification of a user’s identity such as through fingerprints, facial recognition, or retinal scanning. This technology is expected to start to be widely used in Fin-tech companies.
In addition, Fin-tech companies also need to increase the security awareness of their users so that they avoid social engineering attacks. The system developed must also have good security. Otherwise, hackers can exploit existing vulnerabilities to steal sensitive data on them. The development of Fin-tech that occurs today is very easy for its users. The use of increasingly sophisticated features and technologies will make consumers feel comfortable and safe when using digital financial services.
Develop a website or mobile application with an online payment system in it, you can entrust it to Sagara Technology. We have a team of professionals who will help the company to develop a safe and convenient system.