Embracing Disruption

Abstract

Digital transformation and technological improvements imply groundbreaking development in the banking industry. Innovative business models that utilize vanguard technologies for the benefit of the client are the foundation of this revolution. To fulfil evolving consumer desires for ease and customization, emerging technologies have transformed the financial services (FS) sector. The Financial Service industry has seen disruption over the past few years because of numerous factors, including demographic and social change as well as technical improvements. It has significantly changed during the last ten years and is still changing. Artificial intelligence (AI), robots, and blockchain are disruptive digital technologies that are revolutionizing the Financial Service industry, ranging from software robot bankers to consumer support chatbots. Most Financial Service companies are transitioning from robotic process automation to intelligent automation, shifting away from traditional rule-based systems toward AI-powered engines for internal and external risk management. Financial institutions believe that new technologies, especially blockchain, can fundamentally transform the way business operates. Many financial organizations are utilizing blockchain to create a range of platforms, with payments and trade finance being two examples, and are starting to interact with well-known cryptocurrencies. Blockchain technology is a revolutionary invention, with various distinct and innovative qualities that set it apart from prior technical achievements. It is unique in that it allows for the creation of autonomous, open safe systems that do not require central authority. Its advances in encryption, consensual methods, smart contract technology, tokenization, and decentralized Financial Services are revolutionizing industries and laying the groundwork for a more equitable and welcoming digital economy. The objectives of this chapter are as follows: To provide insights into the financial sector’s present situation and viewpoints on key concerns. To delve into the various applications of blockchain technology in the financial sector and to examine the challenges that Financial services are facing. The chapter will also throw light on types of disruptive technologies, the prominent application of disruptive technologies, the potential of blockchain in Fintech, the merits and obstacles of emerging technologies in Financial Services, how disruptive technology influence finance, the risks involved in adopting them, and the effect of disruptive technologies on the finance industry. One can easily conclude that disruptive technologies are the important elements of dynamic changes in business in the present scenario.