IT under the 4th industrial revolution, has taken all of us and everywhere to a completely new e-era. Wherein, the role of e-machines is evident in our new days, as they are marching hard to replace human beings’ bare hands. The US legislation regulating AI provided that the “manpower” point should be carefully studied. Through artificial intelligence AI techniques and other IT programs we see that, new smart phones, computers, robots and drones are very active in performing their duties by far competing humans. Based on this new e-development, the financial technology (Fintech), covers many areas and it is clearly working in full activity and capacity for the betterment of our existing days and the coming future.
Almost all types of banks and financial institutions in most countries are fully accommodating and using, many new developed IT programs. Such as, artificial intelligence (AI), biometrics and other e-sources, in pursuit to perform their duties in fast and out-of-the-art methods. An increase in connected devices and other means to process that data is clearly driving the creation of personalized products based on an individual’s data sets. Moreover, many of the regulators are in the same boat and are pushing towards applying new e-technologies in the work, including accounts opening, process of know your customer (KYC) and moreover know your customer\ customer (KYCC) and applying an anti-money laundering software infused with artificial intelligence. Also, to apply, new Biometrics technologies to combat cybercrimes in advanced sophisticated methods, new fast secure e-payments, new developed Block-chain technologies for crypto-currency or others and new applications for mobile banking., etc. All in the list of IT new technologies, and more are to come soon.
IT e-solutions, along with other institutional policies dealing with compliance, risk management, transaction monitoring and regulatory advanced reporting, will continue to develop as clients and other stockholders are prepared and are always looking for more e-initiatives. The culture has changed to e-culture and e-look.
The Fintech investments along with the adoption of necessary innovation tactics will continue to grow rapidly during next years. The competition among e-players is very tough and more promising to our advantage. New culture and new trend is in the minds of new IT companies and others, with particular reference to Startups and SMEs, taking in consideration the significant return on investment from Fintech investments and related activities.
Having said that, regulators, banks and financial institutions, all-around players and producers, are obliged to prepare the necessary infrastructure for smooth and easy implementation of Fintech methodologies and new trends. The outcome, sure, will give optimum benefit to all parties utilizing the new sources of the new e-era. The march has started through fast new e-machines and, hopefully, we follow-suit and join the run with the same speed and an open-minded attitude.
Dr. AbdelGadir Warsama is Principal Legal Counsel at Dr. AbdelGadir Warsama Consultancy