You might be baffled by the amount of Bitcoin conversations on social media. You need to be cautious with any Bitcoin-related utterances.
But Bitcoin isn’t the only topic that is being discussed a lot on social media related to financial technology (#fintech). If you constantly monitor the trending topics, you might be able to utilize some ideas for your future growth, much faster than your competitors.
Here is a list of 5 trending Twitter hashtags indicating cutting-edge technologies that contribute to generating breakthrough financial products and innovating the financial ecosystem.
As the price level insanely fluctuated, many finance professionals started to think that Bitcoin is a fraud. To fight back, Bitcoin investors are trying to prove its credibility by bringing up blockchain technology as the ground for cryptocurrency. What is blockchain?
Blockchain technology sets the stage for future innovations in many industries including financial services. The technology has been developed based on the principle of the distributed ledger which is difficult to hack and impossible to alter any of its recorded transactions. As everyone in the network can audit the data, blockchain technology actuates the genuine fair trade and gets rid of third party (middleman)’s role.
In fact, Bitcoin or any of cryptocurrencies is just an application of blockchain technology. If you pay too much attention to only cryptocurrencies, you might miss other important aspects related to the blockchain technology.
The prominent aspect that drives financial professionals to believe in the future of blockchain is the smart contract, like the Ethereum smart contract. By encoding contractual terms and conditions, the Ethereum platform transforms a typical contract into a smart contract. The completed smart contract will be embedded into the distributed ledger so that everyone can see but they can’t edit it. When all the contractual terms have been reached, the smart contract will automatically trigger the pre-agreed actions. Smart contracts operate independently of any one individual and are essentially an algorithm that authenticates information.
Blockchain technology and smart contract suggest a new approach to crowdfunding across the peer-to-peer network. If you are working in the financial service sector, also take a look at what people are talking about “ICO” (Initial Coin Offering) on Twitter. ICO is suitable for IT startups and small/large-scale companies to attract venture capitalists in exchange for their investment with potential highly-performing cryptocurrencies.
2. #AI and #machinelearning
AI (Artificial Intelligence) and machine learning have been in rapid development for over 60 years since people have realized the potential in big data sciences, open source software, cloud computing, and processing speeds. This also means that AI and machine learning embrace an innovative and bright future for industrial leaders to invest into.
Financial services are adopting AI and machine learning technology to improve their operations. For example, a banking service is willing to develop a chatbox to automate interaction with their customers. While chatting with their customers, the chatbox can collect valuable information for further analysis. Besides chatbox, advisory robots can also be introduced to improve wealth management, but still, many financial institutions are reluctant to use these.
Although AI brings plenty of benefits to businesses, there should be a balance between human efforts and machine algorithms application. For instance, customer service and wealth management consultancy would still need real human interaction to build solid trust and relationships. Market research should also include human professionals to generate accurate insights.
AI and machine learning applications are changing financial service business system every day. The robust growth in the number of AI platforms challenges the regulators to catch up, audit, and control. Before jumping into this area, you should try to anticipate and prepare to deal with any legal issues that might suddenly come up in the future.
As insurance is among the oldest subsectors of the financial service industry, it needs a revolutionary disruption in technology to boost its current fragile business model.
Insuretech refers to advanced technologies that can help to upgrade the old operation model of this subsector. AI and machine learning techniques are the primary fundamentals for the insuretech developers to produce customized applications for insurance companies. They build up a customer virtual interaction platform that includes automated insurance contract and complex insurance products. Also, faster operating speeds and cloud computing can improve claim processes and boost customer service quality.
If you want to keep abreast of the insuretech area, just go to Twitter and follow #insuretech. Attending specialized conferences such as InsureTech Connect 2018 will also help you to form an in-depth understanding of this topic.
Til the next blog ...
I’ll talk about the last two hashtags in my next blog. Unlike above trends that merely focus on financial issues, the last two hashtags will generate macro effect on the entire society in which financial technology will play a crucial role. Subscribe to our blog to get valuable information about your industry sector!