How Fintech Companies Can Leverage Augmented Reality Solutions

Thanks to the success of Pokemon Go! and Snapchat, many mobile device users are familiar with augmented reality tech. They already recognize this advancement for the role it can play in gaming and social media. However, these are not the only industries that will benefit from augmented reality development. AR for fintech applications is another major vertical affected by this technology.

Broadly, fintech is a term that covers any technology that offers a financial service. Think of banking app, Venmo as a leading example of fintech popular with consumers today.

Thanks to AR solutions, these companies will soon be able to provide an even greater degree of convenience to their customers. Even threatening the existence of many traditional banks if they refuse to embrace the technology to make their consumers' lives easier.

Optimizing the consumer experience with AR

Some fintech products already incorporate AR design features. For instance, The Commonwealth Bank of Australia and Halifax offers an app with features that give users the ability to immediately pull up information about houses for sale that they see on the street. Other banks are leveraging AR solutions to make it easier for customers to find the nearest branch or ATM.

These features are impressive, but they barely scratch the service of what’s to come.

Fintech is often praised for helping people manage their accounts without visiting a brick-and-mortar bank. This allows customers who might otherwise struggle to reach their nearest branch to take advantage of financial services.

Making meetings easier and faster

AR could expand on these features by offering users the choice to participate in virtual “meetings” with bank staff. The Bank of Ireland is one example of a financial institution that has already implemented this AR design for hosting virtual meetings.

Instead of going to the bank itself to open an account, imagine meeting with a specialist right in the comfort of your home. Unlike teleconferencing tools, these products would feature virtual people sitting around a table. This would make it seem as if you were attending an actual meeting.

AR for fintech - eCommerce app

Creating a better retail environment

Fintech and AR technology will also enhance customers’ shopping experiences. In the near future, you could walk into the mall, point your phone’s camera at an item, and immediately receive  information about the product itself. You could also get information about your own account balances and available credit, or both. This will help you make smarter purchases.

Wearable technology will improve upon the features that AR and fintech can offer. Headset-users could walk into the grocery store with a fintech/AR app. This technology could then “highlight” items that fit both their diet and their budget.

Coop Italia is the largest grocery chain in Italy. They have already tested out AR solutions that highlight nutritional value and additional “augmented” information about a product. Brands could modify this type of program so that their products stand out more clearly to headset-wearing shoppers at the mall.

How bankers benefit from the intersection of fintech and AR 

People currently working in the financial services industry could also take advantage of the fintech and AR design revolutions.

Perhaps you’re an investor. Your job requires making decisions based on your assessment of data. Thus, you need tools that help you visualize said data efficiently.  

AR programming and fintech will soon offer such tools. Investors can wear headsets that transform their surroundings into data visualization centers. This makes it easier than ever to evaluate the necessary information quickly.

Fidelity Investments is one financial institutions utilizing AR design for precisely this benefit. They’re developing an AR app for the Oculus Rift to help traders envision decisions in a virtual landscape.

Across many industries, AR also boosts the efficiency of employee training programs. Typically, when employees throughout a company need to be trained in a new skill or task, they all must attend in-person sessions.

The logistics and costs associated with arranging these meetings can be very burdensome. Thanks to AR, bankers will soon be able to attend virtual training sessions without ever leaving the office.

These examples represent only some of the ways AR technology can improve fintech. They illustrate how both bankers and their customers can benefit from the marriage of these technologies.

While some in the financial services industry are worried that fintech may be a threat, they’ll soon see what a tremendous opportunity these technological revolutions offer.

The 5 Hottest Fintech Trends to Watch for in 2018

If there was ever any doubt that a fintech revolution is underway, that time is gone.

Just take a look around you, and it's clear that financial technology is disrupting the traditional financial services industry. By embracing the latest technological innovations, fintech startups have been able to provide users with a degree of convenience that banks and similar institutions have yet to match.

This trend will continue as fintech companies continue to make use of new tools and techniques. The following are some of the more significant fintech trends that are likely to develop in the near future.

1. The Rise of Mobile Trading

Mobile fintech apps like Matador have ushered in a new age for anyone who has ever wanted to invest in the stock market. By jettisoning the brick-and-mortar offices of traditional invest firms, these services allow users to invest without having to pay broker fees. This makes it much easier for people with limited capital to make investments.

It’s highly likely that existing firms will also begin developing their own mobile strategy and software to facilitate easier mobile trading.

2. Increased Collaboration

Financial technology is disrupting an industry full of established practices. Strategic people working for traditional financial institutions recognize that collaboration with startups will be key to their survival.

If banks do partner up with fintech companies, everyone wins. The startup brings a fresh, convenient approach to financial services.

Meanwhile, the bank has the experience to help them navigate the regulations that dominate the financial services industry. This allows startups to release their products more efficiently.

3. Blockchain Technology

Although it’s only about a decade old, blockchain technology is poised to have a major impact on fintech. That’s because it allows banks to create digital ledgers that record transactions in real-time.

This ledger is accessible to anyone in the community. As such, it will boost the overall efficiency of processes like international wire transfers. It’s simply going to be much easier for banks to confirm where money is coming from and where it’s going.

4. Efficient Transactions

Fintech development companies often strive to reduce the friction involved in a transaction. For example, consider Amazon Go, the e-commerce company’s brick-and-mortar project. Allowing customers to simply walk into the shop and walk out with their goods (the transaction is processed digitally) offers tremendous convenience to users.

That being said, while people may enjoy the convenience of frictionless transactions, they need to be more careful when making purchases. Otherwise, they’re likely to suffer from buyer’s remorse. It’s easy to spend more than you planned when buying something is a one-step process. The same rule applies for investment and other financial-related activities.

5. Increased Lending

Amazon recently announced that they’ve already loaned over $1 billion to their merchants via their lending department. As such, companies like Amazon have a lot of data about their merchants, thanks to the nature of digital connectivity. Thus, it's easier for them to assess whether or not it’s safe to lend funds to a merchant.

Other companies are following suit in this fintech trend. This helps individuals and organizations who might not qualify for a bank loan acquire the funds they need to grow their own businesses. Increased lending via fintech services will likely have a substantial impact on the entire economy as small businesses gain more opportunities to thrive.

As with any technological revolution, it’s not entirely possible to predict all the innovations and fintech trends we can expect in this industry. However, these five represent some of the most likely financial technology developments we can look forward to in the near future. Very soon, they’re going to reshape the way virtually everyone spends, saves, and invests their money.

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