IndexAdvantages of fintech for banksPersonalised bankingFraud preventionConclusionReferencesIn the age of Millennials where we are glued to our smartphones, our daily lives and routines have changed radically and we have less time for ourselves. Consumers want immediacy, quick transactions without any effort. In this context, the role of traditional banks has been completely heralded by fintech. Fintech refers to the integration of technology into the offerings of financial services companies in order to improve their use and delivery to consumers. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay Previously, the functions of banks were limited to maintaining deposits, making loans, and controlling controllable deposits. People had to go into banks and stand in long lines just to deposit money. ATMs were then introduced to facilitate customers. Likewise, moving money between accounts or paying someone usually required a trip to the bank or access to a card reader to make a transfer via online banking, but with payment processors like PayPal, it has become a chore just one click. To make it even faster, the Tap and Pay service has been introduced. Customers simply wave or tap their contactless device on a POS device to make a payment. Australians made 325 million contactless payments in 2017, a 26% increase on 2016. Additionally, mortgages are considered one of the most difficult banking functions due to lengthy application processes and stringent regulation. FinTech mortgages have become increasingly popular thanks to the digitalisation of the process, transforming it from a slow paper-based process to a faster, more transparent and simplified application process. For example, Athena home loans, Loans.com.au, Funding Pro. However, the fintech sector boomed after the 2008 global financial crisis. When the financial giant Lehman Brothers suddenly declared bankruptcy on September 15, 2008, the financial world he was shaken. People were losing their jobs, families were losing their homes and, most importantly for our story, everyone was losing faith in the institutions that were supposed to offer financial support. The change in consumer mentality has created demand that has given new operators the opportunity to enter the market and offer better and more competitive services. New fintech services include third-party payments from non-bank digital providers, peer-to-peer lending, internet credit, including microloans, internet-based banking and insurance, digital wealth management and credit scoring. Artificial intelligence (AI) is creating the greatest technological revolution the world has ever seen. It refers to the development of machines or systems capable of performing complex tasks that are normally thought to require "intelligence" and therefore thought to be the exclusive preserve of humans. It provides a faster and more accurate assessment of a potential borrower, at lower cost and takes into account a wider variety of factors, leading to a more informed and data-supported decision. It is also effective in preventing credit card fraud. This system analyzes customers' behavior, location and purchasing habits and activates a safety mechanism when something seems amiss and contradicts the established spending pattern. It also helps in risk management, trading, personalized banking,in process automation, etc. Recently, the Commonwealth Bank unveiled a chatbot that it says uses artificial intelligence to assist customers with more than 200 banking tasks. Called “Ceba,” the chatbot helps customers with tasks such as activating the card, checking account balance, making payments or getting cash without a card. Blockchain can enable financial and other transactions in seconds, not days, and dramatically reduce infrastructure costs. It is an encrypted and secure protocol for building trust between contracting or transactional parties without going through a central authority such as a central bank, government or other agency. Blockchain underlies cryptocurrencies such as bitcoin, Ethereum, ripple, and many initial coin offerings. Cryptocurrencies use blockchain decentralized ledger technology (DLT) to allow users to make secure payments and store value without the need to use their name or go through a bank or payments company like MasterCard or Visa. THEY enable peer-to-peer transactions without central clearing houses, without central banks and without reference to a national currency. The dollar value of the top 10 largest cryptocurrencies is approximately $150 billion, while UBS (FINANCIAL SERVOICE PROVIDER) estimates that blockchain could add $300 to $400 billion in annual economic value globally by 2027. The rapid Adoption of third-party payments has been enabled by technology, the proliferation of e-commerce and social media. It works like a digital wallet and is basically a replacement for a physical wallet. Debit/credit cards are linked to the digital wallet and we can transfer money to it. One of the first to enter this space is China's Alipay, which in 2004 launched electronic payment options on the e-commerce platform owned by its parent company Alibaba. Since then, mobile payment-oriented applications have proliferated while their usage has increased dramatically. According to one estimate, payments made through third-party processors reached over 119 trillion RMB (or approximately 18 trillion US dollars) in 2016. Similarly, in Australia, 29% of people use services like PayPal. Mobile banking apps are different from payment apps because it basically means making transactions through your existing bank account. People can check their balance and make and receive payments with just one click. Banks in Australia like Commonwealth, ANZ offer such services to their customers. Banks are also planning to launch apps that people can use to withdraw from ATMs instead of using cards. According to Fusion, some also provide biometric security and "payments" from Apple, Google, and Samsung to truly meet their customers' expectations. According to Roy Morgan research published in January, mobile banking is not only the fastest growing way of banking, but also has the highest levels of customer satisfaction (89.3%). Crowdfunding is the use of small amounts of capital by many individuals to finance a new business venture. Leverage the easy accessibility of vast networks of people through social media and crowdfunding sites to bring together investors and entrepreneurs, without any financial intermediary. Websites like Kickstarter and Indiegogo attract hundreds of thousands of people hoping to invest in the next big thing. This site has funded more than 160,000 projects, with more than $4.2 billion committed across all Kickstarter projects. Peer-to-peer (“P2P”) lending had also increased rapidly until recentlysome time ago. After the global financial crisis, banks were hesitant to lend to small businesses. Therefore, in order to eliminate intermediaries, a P2P platform was created that collects information, evaluates credit, facilitates information exchange, and matches borrowers and lenders. These platforms get funding mostly from retail investors. Credit Karma and Kabbage are good examples of such Fintech companies. The value of loans made through P2P lending platforms in Australia is expected to rise to $22 billion and the total addressable market to grow to $87 billion over the next five years. Cardless cash is a feature offered by some Australian banks that allows customers to withdraw cash from an ATM using their smartphone rather than their debit card. This feature is a safe and convenient way to access cash when we leave our wallet at home. The user has 24/7 access to cash and can withdraw up to $500 every day. Commonwealth Bank and Westpac are one of them. The benefits of Fintech for banks It paves the way for a win-win partnership. Competition between banks and new entrants may give way to direct competitioncollaboration in the Fintech ecosystem. If so, both parties should profit. From the bank's perspective, fintech lacks adequate IT security and regulatory certainty, while fintech believes that banks can be difficult to work with due to differences in management and culture, as well as differences in operational processes. become faster, more accessible and cheaper. Intelligent character recognition allows you to automate a variety of mundane and time-consuming tasks that previously required thousands of hours of work and inflated payrolls. Using robotic process automation for high-frequency repetitive tasks eliminates room for human error and allows a financial institution to refocus workforce efforts on processes that require human involvement. Ernst & Young reported a 50%-70% cost reduction for this type of business. A leading financial firm, JP Morgan Chase, has been successfully leveraging Robotic Process Automation (RPA) for some time now to perform tasks such as data mining, Know Your Customer regulatory compliance, and customer acquisition. documents. Small banks are willing to jump on the FinTech bandwagon market. In the aftermath of the financial crisis, many local banks have fallen behind the rest of the competition. And the time has come for them to take action to be reborn and find their place in the sun again. Several US banks, Evolve Bank & Trust, Cross River, Sutton Bank, have established strong relationships with startups. As young companies reach their customer base and gain regulatory protection, incumbents capture the mobile banking app market. Personalized Banking In banking, artificial intelligence powers intelligent chatbots that provide customers with comprehensive self-help solutions while reducing the workload of call centers. Voice-controlled virtual assistants (HTTs) based on smart technology like Amazon's Alexa are also gaining ground quickly, which is no surprise: boasting a self-education function, they are getting smarter every day, so you should expect huge improvements here. Both tools can check balances, schedule payments, view account activity, and more. Fraud PreventionAI is particularly effective at preventing credit card fraud, which has grown exponentially in recent years