Technologies Changing the Landscape of the Financial Industry

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Technologies Changing the Landscape of the Financial Industry

CFO Tech Outlook | Wednesday, July 27, 2022

In the coming years, major technologies will drive business model reinventions and shape the financial industry's competitive landscape.

Fremont, CA: Diverse essential technologies and trends are becoming interwoven and interconnected, giving fintech and finance industry innovation a significant boost. Niche financial subsectors are currently the most adept at leveraging technological advancements to develop applications, create value, and alter the competitive landscape. In the future, incumbent financial institutions will need to employ their substantial resources to stay ahead of the growing wave of disruption in the financial industry.

Blockchain technology will disrupt existing banking processes.

DLT permits the recording and sharing of data across numerous data stores and the simultaneous recording, sharing, and synchronization of transactions and data across a distributed network of participants. DTL will strengthen ecosystem funding by enabling the simultaneous storage of financial transactions in many locations. Some DTLs employ blockchains to store and transport their data and cryptographic and algorithmic techniques to record and synchronize the data across the network immutably. Also, cross-chain technology will increasingly promote blockchain interoperability, enabling chains formed on various protocols to communicate and transmit data and value across tasks and industries, such as payments processing and supply chain management.

IoT will give birth to a new era of financial trust.

After years of languishing on the lower slopes of the hype cycle, IoT is finally maturing, with significant financial implications. The Internet of Things consists of three layers: perception and intelligent sensor systems, wireless communication networks, and application and operations support. RFID tagging has significant untapped potential for automating item identification and logistics management. IoT communication solutions are also expanding, allowing devices to communicate across wired and wireless networks, near-field communication solutions, low-power wide area networks, narrow-band IoT, connected endpoint devices, and centralized control management. Embedded systems and smart technology are expanding rapidly, allowing for more intelligent item communication.

Redefined application development with low/no-code

No-code development platforms (NCDPs) and their close relative low-code platforms enable programmers and non-technical people to create programs using graphical user interfaces and setups rather than traditional computer programming. Although the platforms are relatively young, they can lessen the need to acquire scarce and costly software talent.

The NCDP incorporates and uses component reuse and assembly in software engineering, DSL (domain-specific language), visual fast development tools, flexible workflow process orchestration, and design thinking from a technological perspective. The growth of DevOps, cloud computing, and other technologies that address challenges like containerization, rigid scalability, and upkeep of high availability computing systems is crucial to creating NCDP.

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