Features and Technologies Applied for FinTech

Financial Technology or shortly FinTech is known as providing new solutions that offer innovation based on its products or business models and applications in the financial service industry by using the technology. There are four features that should be part of FinTech, those are highly innovative, pioneering, disruptive, and customer-focused. Offering product by not offering new innovation in terms of the added value of customer’s experience won’t attract the customers. Moreover, once the FinTech companies could be the pioneer, they will be the center of its FinTech companies’ types and disrupting means deliver the change that shifting from traditional to digital that we could see nowadays. The FinTech companies should provide product and services based on customer’s demand because the one who is going to use their products are the customers.

Besides the features, there are technologies that should be applied for FinTech, those are the use of artificial intelligence (AI), big data, computational power, and Internet of Things (IoT). For instance, Siri that applied for the entire devices of Apple is one of AI. A chatbot is another example of an AI robot that is applied in the banking industry. The banking industry in Indonesia utilizes chatbot to help customers. It is a computer program that could communicate in the form of conversation and designed to simulate the conversation and human interaction. Several chatbots in Indonesian banking are Smart BRI New Assistant (Sabrina) from Bank Rakyat Indonesia, Virtual Assistant Chat Banking BCA (Vira) from Bank Central Asia, and Chat with your INTelligent Advisor (CINTA) from Bank Negara Indonesia.

Big data is a massive data collected from the customers and it will be further analyzed. Let say the bank wants to know the good loan in the region of DKI Jakarta. Then through their system, they will sort several criteria and the final data could be analyzed what kind of customers’ they are in terms of their behavior. Furthermore, computational power is the capacity of the machine or computer to compute the data. Usually, on your laptop or PC, you will check the specification, for instance, RAM and Processor. The highest level of computer power is Quantum Computing (QC).

Last but not least is IoT. The IoT that we commonly utilize nowadays is QR code. QR stands for Quick Response and just by scanning the QR barcode you could just conduct your transactions instantly. By providing the QR code, you could just get the information for certain companies when you scan the barcode. The QR code for a payment system is widely used nowadays and it facilitates to check out the transaction in a very instant way.

*source:

David Lee Kuo Chen & Linda Low – Inclusive Fintech: Blockchain, Cryptocurrency, and ICO (Book) & Herdaru Purnomo: https://www.cnbcindonesia.com/

Rewrite and enriched by Shinta Amalina. H. Havidz