Financial services firms look to 2019 and technology innovation.
As we near the end of 2018, it’s appropriate to take a look back at the wild ride we’ve had in the financial sector. 2018 was a time of great change, driven in part by technologies like artificial intelligence (AI), machine-learning automation, and market challenges such as data security. When coupled with regulatory changes and market shifts, it made for an interesting and sometimes exciting, but always challenging year.
This article shares some of the top factors impacting the financial industry as we head into 2019.
PWC Releases 2019 Predictions
For the first predictions, let’s look to global giant PWC for insight. One of their big predictions for 2019 is that technology will further disrupt those last-to-the-table financial firms that have been reluctant to even embrace cloud technology, let alone AI and machine learning. But PWC says changes will come in from outside the industry, from tech-driven startups creating new service models for the entire industry. PWC says, “They have been attacking some of the most profitable elements of the financial services value chain.” These “attacks,” they point out, have been “damaging to the incumbents” in the financial sector.
One change for next year tied to our increasing reliance on digital technologies is the use of big data analytics to draw actionable insights from customer data. Financial firms will increasingly attempt to slice, dice, and gain actionable insight from customer intelligence based on past behaviors. Machine learning tools will be used in this area to predict future consumer behavior and then shift corporate strategy to respond accordingly.
Financial services technology innovations, or “FinTech” as they’ve been called, are exploding in a market service line that hit $215 billion as far back as 2014. Look for these young upstart FinTech companies to continue to rock the boat next year.
What trends will impact our customer interactions in 2019?
In addition to PWC, we believe that financial firms will continue to leverage cloud technologies to change how we borrow, bank, and save income.
These cloud technologies will help financial service firms expand their use of third-party vendors who are able, of course, to exhibit both an expertise in their field and data security. In the case of third-party collection agencies, this will narrow the field greatly; very few collection agencies have invested as heavily in data security as TSI has. Increasingly, small collection firms will not be able to compete for business in the financial sector, and we anticipate many will either merge to pool resources or close completely.
Tomorrow’s collection agency must look more like what financial services firms are becoming: more agile and technology savvy with the tools to keep data safe in uncertain times. TSI is that collection agency, offering our clients unprecedented levels of technology sophistication along with next-gen security tools to keep their data safe.
2019 looks to be another challenging and exciting time for our clients in the financial sector. TSI is proud to be standing beside these firms as we look toward the future and technology innovation. Learn more about financial services debt collection — contact TSI.