GP | The Impact of New Technology on the Banking and Finance Industry

Over the past two decades, technical disruptions have changed how we interact, talk, buy and do business. The banking and finance industry’s emerging technology has continually changed how customers interact with their money, how they expect from financial institutions, and how specific institutions work.

Today’s innovations simplify and streamline operations, reduce mistakes, enhance communication, and change how customers see and interact with money.

Most importantly, financial institutions can use these technologies to their advantage. New technologies like chatbots and automation can cut person-hours, improve customer relationships, and make more money throughout the financial services industry. Technological innovation in financial services will have different effects on different jobs, but you’re likely to be able to adapt and get a great deal out of most of them.

Here are some ways that technology changes the financial industry to help businesses and individuals.

Online Banking

Banking was conducted manually and in a non-virtual environment. Going to the bank in individual was necessary for some financial responsibilities, such as withdrawing cash, transferring money around, and depositing money into an account. Nowadays, individuals can send and receive money, transfer payments, and pay bills effortlessly using their internet-connected mobile phones.

Online banking is becoming more advanced frequently, and several banking operations can perform with a few taps on the screen of smartphones and mobile devices. Individuals seeking loans may get the necessary information and the best offers by accessing responsive financial websites without leaving their workplaces or homes. Bank accounts, monthly statements, and transaction records can all be found on desktops, tablets, and mobile phones.

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Digital banking is one of the most significant technological influences on the finance and banking industries.

Efficient Processes

Technological advances have improved the efficiency and speed of banking procedures for both financial organizations and customers. A bank account user can easily access their account record and transaction data when traveling for business or pleasure in another country. Online applications for opening a new bank account or applying for a loan may be completed. It improves the financial institutions’ and customers’ lives.

Customer Service

Customer service is the most significant way FinTech changes the financial and banking sectors. A strong customer service team is important for every finance company in the previous. Everything involved in managing money or financial matters demanded skilled personnel to help settle problems and provide support to consumers.

However, chatbots have quickly become the preferred method of customer interaction. At the same time, an AI that learns and becomes smarter seems good on paper. But in theory, it loses a human touch and also makes a large number of people unnecessary. Why pay an employee when a machine can do the job for less?

Fraud Detection

We live in a digital era where cybersecurity is a significant problem, mainly when conducting financial transactions. Due to advancements in technology, fraud detection in the finance and banking sectors has become more effective and efficient in protecting consumers’ financial data and information from hackers.

Integration of cutting-edge technology such as artificial intelligence and machine learning enables fraud detection to be more accurate, dependable, and accessible. Due to the alerts delivered to consumers on their mobile devices, bank account holders can easily detect potentially fraudulent behavior in real-time.

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Secured websites that use SSL certificates automatically encrypt user information to protect it from malicious individuals. AI can readily evaluate a set of attributes, such as customer behavior, to forecast and prevent fraudulent activity. These factors help financial institutions increase security and credibility and help customers avoid fraudulent activity.

Mobile Payments

Financial and banking transactions have changed dramatically due to technological advancements.

Mobile payment is another way technology changes the financial and banking sector. Organizations and individuals may now send and receive money transfers using various mobile payment options in real-time.

PayPal, Google Pay, and Apple Pay make it easier to pay for online purchases. Furthermore, payments can be made for products purchased online. There is no reason you should wait days and spend hours in lineups to get payments. You can be paid or send money in real-time, saving valuable time.

Blockchain

Blockchain technology was first used when Bitcoin came on the market in 2009. It’s been a long time now that “when it comes to developing technology for financial products, the tech behind cryptocurrencies has been the most significant key for a long time now. When blockchain technology is used in the future, it could significantly impact banking institutions and the financial industry. Blockchain is a technology that makes it easier to keep track of things that happen worldwide, such as finances.

Blockchain can have a lot of benefits for institutions, like lowering costs, speeding up transactions, and making them more transparent. There are also a lot of other benefits for institutions. An open ledger that no one owns can also replace traditional cloud database systems.

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With minimal transparency and insufficient traceability, the introduction of blockchain technologies will disrupt any financial institution. But, since blockchain technology is still in its development and there is currently no practical solution for the financial industry, many financial institutions find it challenging to implement this new technology.

Final Thoughts

For years, we’ve known that technology would advance to the point where everything exceeds the individuals who created it. And the real issue is that there is a compelling case to be made for a machine-based future. They are more intelligent, quicker, less prone to errors, and economically feasible.

Technology is changing the way the finance industry works in many different ways. These are just a few of them. Progress is the leading cause of the disruption. It’s usually a good thing when things move forward in any field because the people and technology before are becoming obsolete and need to be changed or removed—the human side of the finance business and what’s at stake here.

Furthermore, when using these innovations, such as online transactions or bank deposits. Employ security software like Watchdog Software for windows 10 to avoid possible malware or fraud.

AUTHOR:

Jennysis Lajom is an IT graduate, a chemist, an eCommerce business owner, and a Korean drama fan. Her passion for digital marketing led her to a career in graphic design, editing, and social media marketing. She is also one of the resident SEO writers in the Softvire US and Softvire Australia.