There is a real revolution going on in the world of Fintech due to recent consumer and technological processes in the global and Israeli markets. This revolution is making Fintech a service provider to large entities such as banks and insurance companies who offer their services to the end customer. The provision of services without a vested interest is not tied to a particular institution and thus offers the best non biased solution for the consumer.
These changes are taking place as a result of a combination of several recent developments. The first change is the baring of the most important sources of information in the market to the public - insurance, Money Mountain and pension clearing house. The second change is in consumer awareness, which has grown tremendously among both the Israeli and global public. The third change is the advent of the Big Data world, which helps us to not only keep informed about the sea of information, but also enables us to create personalized clear and simple offers. Not only in Israel, but also world-wide, small start-ups are accessing large databases that enable data processing and the creation of customized valuable propositions that will ultimately benefit the customer's financial situation.
Thus, as an example, until recently funds remained in provident and pension funds for years and years, even decades and the owners of the savings accounts did not check their savings accounts. The owners of these saving accounts simply continued to trust that their banker had offered the best savings plans, but today this is no longer the case. Customers want to achieve the best return on their money and they want the best savings conditions. The audience is technologically savvy and open to receive information from startups that will offer them the best way to channel their money.
These startups compare customer data and run artificial intelligence tools which generate both custom and complex proposals from multiple vendors that maximize profits and reduce the cost of customer service.
The tools at their disposal are the Big Data tools, which give them the advantage of being able to minimize. The field of finances is so full of data and information that the interpretation of all this data is sometimes almost impossible and achieving intelligent analysis is a challenge.
The entrepreneurs who have begun to develop mediated technologies have created tools that draw information from a number of institutional bodies simultaneously, enabling them to create a holistic overview which each individual entity does not have access to. Moreover, these technologies can assimilate and disperse the information in a way that can easily be understood and used.
An innovative and fresh example of one of these new technologies in Israel is the "Robin" application which is connected to the databases of the Ministry of Finance, the Mount of Insurance and the Pension Mountain and which began to collect information from all the
bodies that have insurance funds or coverages. The information gathered is processed and displayed on user screens for the first time in a simple and easily accessed way.
The Robin application utilizes easy-to-understand icons and graphs to help users make decisions based on clear information. In a way, Robin can be compared to the Windows world revolution that enabled easy home access for everyone to the world of computing. Instead of a code there is a button to press, instead of an old formula there is a click. The information remains the same, but the tools to access it have changed and everything is explained.
Big Data helps to collect and analyze the vast amount of information gathered through the creation of algorithms and mathematical formulas which then generate valuable propositions for consumers use. In other words, visualize thousands of robots who collect the information, analyze it in fractions of seconds and offer suggestions based on that information to improve and make more effective financial products, life insurance, pension plans, savings plans and bank accounts as well as health insurance plans. This process is repeated every month based on changes in performance and tariffs. If people and not systems had to do this for just one customer it would take years and years. The range of possibilities is so great that finding and creating the best offers is a task that can only be performed by supercomputers. The Big Data puts into its calculations any data that can help it in making decisions, including those that on the face of it seem to be unrelated but that in the end succeed in accurately predicting behavior.
This revolution has not skipped over the big financial institutions. These entities, which are too large and cumbersome to make quick moves and to evoke quick changes, often adopt the small start-ups who can help them shorten work procedures in order to improve their offers to customers. In any case, the general public and the final customer are likely to benefit from all these innovations and our money is likely to be navigated in a much better way.
