5 Real Use cases of How Technology is Transforming Finance Industry in Europe

The dismal performance of the financial services industry and an ever-growing dissatisfaction amongst consumers can largely be attributed to the legacy systems, resistance to change given the size of incumbents, and regulations imposed by lawmakers.

Application of advanced technologies to various financial services has altered the ecosystem completely as start-ups launch solutions for tech-savvy consumers and their rapid growth make incumbents take notice and adopt corrective measures to remain competitive.

Many countries in Europe with a high Internet penetration and high ranks in global competitiveness and ease of doing business indices are taking cognisance of the impact of FinTech. Whilst the United Kingdom is expected to continue being the market leader in the foreseeable future, investments in some other locations have recorded a marked increase.

Advanced technologies that are transforming the Finance Industry in Europe

The impact of advanced technologies on financial services extends from improved efficiency and effectiveness to increasing customer satisfaction

Cloud Computing:

Cloud computing enhances the agility and scalability of FS providers with secure access to business software, from any location with the Internet, using IaaS, Paas, or SaaS.

Real Use Case – fiserv – a broad range of cloud-based financial services technologies

  • Panin Bank uses Mobiliti and Corillian Online for digital banking
  • Deployment of mobile banking and payments services via SMS, apps, and mobile browser

Impact on the Industry

  • Enhanced competition
  • Lower costs
  • Secure data storage enabling data analytics
  • Improved value proposition for customers

Internet of Things:

IoT and connected devices in FS help reduce time and costs and are likely to impact insurance and payments much more than others.

Real Use Case – Wealthfront – Automated Investment Management, Online Financial Advisor

  • Tracks user account activity
  • Analyses and understands expenditure, investment, and decision-making patterns
  • Enables customised advice to customers

Impact on the Industry

  • Inclusive investment
  • Lower cost of advising
  • Lower risks with predictive analytics
  • Hybrid model of advising will grow

Big Data and Advanced Analytics

Big Data and Analytics will improve customer experience and engagement by collecting and analysing data from multiple sources

Real Use Case – BihavioSec – Customer authentication based on behavioural biometrics

  • Continuous ML to learn user behaviour/ keyboard dynamics/data from sensors
  • Available for both Web browsers and mobile devices

Impact on the Industry

  • Real-time and automated fraud detection; attack prevention
  • Seamless security to enhance user experience and confidence

AI and ML:

AI and ML can provide personalised financial recommendations; and recognise and predict patterns using habits, activities, and behavioural characteristics.

Real Use Case – Santander – Large bank with a wide reach across consumers and enterprises

  • Uses Nuance’s voice recognition technology to control the mobile banking app
  • Enables customers to access information and adds another layer of security

Impact on the Industry

  • Added security feature
  • Enables two-way interaction with voice-banking


Blockchain is a digitised and distributed ledger, with near real-time updates that are immutable, enabling the use of digital currency and high levels of security.

Real Use Case – Allianz – One of the largest insurance firms testing technologies to improve efficiency

  • Conducted a test-pilot with Nephila
  • Blockchain-based smart contracts for ‘catastrophic bonds’ payment
  • Processing and settlement of payments was significantly accelerated and simplified

Impact on the Industry

  • Reducing the time to settle contracts and insurance claims (from months to days)
  • Significantly reducing manual authentication, verification, and processing through intermediaries

Advanced Technologies will Disrupt the Financial Services Industry

The use of advanced technologies will increase exponentially as new partnerships and investments impact products and services of the incumbents. Whilst some market share will be gleaned off by start-ups, the major change will be in how the incumbents adopt innovations. Those that cannot change fast enough will partner with start-ups to retain customers

Sapan Agarwal | sapan.agarwal@frost.com | +603 6204 5830

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