Many of the huge technological developments experienced around the world this year were purely catalysts, setting the scene for an explosion of growth in 2017 according to accounting software specialist Xero.
“There are three areas where I see huge expansion over the next 12 months – all areas that I believe small business owners should all take note of,” said Gary Turner, co-founder and managing director (MD) of the New Zealand-based company, whose cloud-based accounting software is aimed specifically at small- to medium enterprises (SMEs).
The three emerging financial technology (fintech) trends highlighted by Turner and his comments are as follows:
1. Chatbots: Artificially intelligent agents that enable even the smallest of businesses to provide information to visitors on their business website. They are effectively a 24/7 AI concierge advising about products, services, answering questions or even helping to sell more.
What’s the benefit for SMEs? Chatbots give instant feedback to customers, and can provide answers to simple questions such as ‘do you offer free estimates?’ or ‘what are your opening times?’. Chatbot technology can give the company’s customers a personal service while improving its responsiveness and giving employees back some precious time.
2. Natural voice agents: Since first going mainstream in 2011, with the launch of Apple’s Siri, this technology has come a long way. With the release of the new Alexa service inside Amazon’s voice controlled speaker, Echo, and the new Google Home equivalent, 2017 is likely to see the adoption of voice recognition soar as the level of sophistication and intelligence continues to develop exponentially.
What’s the benefit for SMEs? Voice agents will ultimately make companies more efficient; something the UK desperately needs to improve given its second-to-last place among the G8 nations in terms of productivity. By passing tasks on by natural voice, time – and money – is saved as the technology develops and AI can handle more administrative tasks.
3. Security: The past year has seen a worryingly dramatic increase in online fraud and hacking and we need to be tougher. There will be improved security disciplines, with vastly improved secure technology set to feature more prominently in 2017.
How can SMEs protect themselves? Systems such as two-step authentication, which requires a password and username as well as an extra piece of information only the user knows, can provide business owners with another layer of security to protect themselves against phishing scams and security breaches.
Criticisms of bitcoin by JP Morgan Chase’s boss have been denounced by a UK academic as “ironic” and “hardly surprising” considering the impact bitcoin could have on financial intermediaries.
Leaked documents from the UK Home Office proposing that low-skilled EU migrants would be restricted in the UK’s post-Brexit immigration scheme may be more likely to increase automation and off-shoring of labour, rather than increase British wages, industry experts have warned.
The European Central Bank's (ECB) hotly anticipated meeting on Thursday afternoon made the euro skyrocket, as president Mario Draghi announced interest rates would remain at 0% and its quantitative easing programme will stay until at least the end of 2017.
The “sad truth” of banking is that many jobs will be automated in the future, Deutsche Bank's chief executive said yesterday. Despite this, a recent survey found that 98% of European workers are optimistic about the changes automation will bring to their workplace.