This is just the beginning. As we enter a new decade, let’s discuss the impact of AI on finance, how it affects consumers and businesses, and how AI will change the financial services industry in the future.
A Brief History of Digital Financial Services
Traditionally, financial services consisted of brick-and-mortar banks. The korean numbers phone evolution of online banking began in the 1980s. It wasn’t until 1994 that Stanford Federal Credit Union became the first financial institution in the United States to offer Internet banking to all of its customers. Not even a year later, Presidential Bank became the first bank in the country to offer its customers access to their accounts online. By 2006, more than 80% of banks offered Internet banking services.
Financial services have come a long way since the mid-1990s. The most prevalent trend in banking today is the shift to digital, particularly mobile banking apps and digital banks. In an age of convenience and speed, customers don’t want to waste time visiting a branch. This is the case for Millennials and Gen Z, both of whom make up the majority of today’s workforce.
This digital transformation has led to increased competition from neobanks (digital-only banks) like Varo and Carillon as well as consolidation of startups and smaller banks. In 2018, FinTech funding reached $32.6 billion at the end of the third quarter. That’s an 82% increase from $17.9 billion in 2017, according to CB Insights .
Even tech companies like Google are starting to enter consumer banking. This adds to an already volatile market. How are these companies staying ahead of the competition? The answer lies in AI.
