There is no doubt that technology has come to stay, and this best explains the reason Fintech companies like Swissmoney are presently able to offer their unique services to their customers.
The impact of technology extends to various sectors of our economies, including finance. And in this piece, we will be looking at how tech and its instruments are revolutionizing the finance industry.
Technology and the Finance Industry
Each time technology walks into an industry, various changes emerge. This claim can be said to be true of the finance industry as well.
The introduction of technology into the finance industry has brought about a drastic change in how consumers interact with their money and their expectations from their financial service providers.
In general, the processing period of financial activities has been improved, and businesses now enjoy seamless daily transactions between them and their suppliers and employees.
With technology in the finance space, we now have new neologisms such as Fintech. Fintech companies operate similarly to traditional financial service providers but with some novel innovativeness.
We can safely say they bring the consumers’ money closer to them by offering them real data and access to their funds whenever and wherever.
Technology is undoubtedly changing the face of the finance industry, and in order to have a clearer picture of how it is doing this, we will dive into the areas where technology is utilized to bring about novelty in the industry.
Technological Revolutions in the Finance Industry
Introduction of Blockchain
Blockchain is no longer the news in the finance sector. Popular and leading traditional financial service provider such as JP Morgan Chase has even adopted the use of blockchain in their service.
Blockchain comes with a lot of prospects and opportunities for the finance industry. Traditionally financial institutions need to deal with piles of paperwork, handle their vulnerability to security woes as well as face their slow nature and huge overhead cost of operations.
However, the decentralized nature of blockchain makes it possible for banks to spend less and put their customers’ minds at rest.
Blockchain helps banks deal with a reduction in fraud, smart contracts, and the process of loan offering, among others.
Artificial Intelligence Solution
The banking sector has recently enjoyed the ease of providing solutions to consumers globally. All thanks to the AI and chatbot features that technology affords. Fintech companies like Swissmoney can easily assist their customers with their requests and challenges remotely.
Beyond customer service, AI now helps financial institutions, including credit unions, credit card companies, etc., with their product delivery, marketing, risk management, and against fraud.
With machine learning algorithms, financial companies can now enter data, evaluate risk and even process loans for thousands of customers within a few moments. Access to data has become easier and more open to businesses in the finance sector.
Service Automation
Technology has revolutionized how financial companies offer their services to their customers. With robotic process automation (RPA), customers do not need to visit their bank branch to get access to their funds.
They do not even need to meet their account officer or personnel to make transfers or purchases. Every financial decision can be made from their mobile applications, websites, or even at the automated teller machine.
Also, automation makes it easier for financial companies to easily generate reports and utilize their gathered data to make productive decisions.
Automation helps banks and other financial service providers to reduce human error and even their cost of operations. And it makes it easier for these businesses to gain access to their audit results.
Access to Investment
The stock market used to be a haven for brokers and their organizations. Investors were always left at the mercy of their stockbrokers. But with technology, every customer can decide to take a look at the market and put their money into it.
With Apps like Robinhood, anyone can enjoy commission-free stock and securities trading. Technology makes it easy for anyone to buy a part of any public company they love and become a shareholder in it.
While this opportunity comes with its challenges and downsides, such as the possibility of uneducated people losing their money in their trades, it still helps to bring about a higher level of participation of people in the stock market.
People who are interested in investing their money in the stock market only need to take their time to learn the intricacies of trading so they can maximize their profits.
Easy Access to Financial Risk Management
Risk management has always been one of the crucial interests of every financial organization. They want to maximize their capital to make enough profit, especially in the area of credit facilities.
Technology recognized this pertinent need of financial organizations, and it opened up a novel means of assessing their risks.
Credit companies now have credit scoring systems in place that help them know the right person they should dish out credit to and those who don’t deserve it.
Credit card companies can now issue loans without the need for collateral. And one good this about this is that it does not take too long for the credit company to carry out its risk assessment.
The data they have gathered using technology makes it easy for them to interpret the result they seek. This reality is helping credit companies to make quick decisions.
Conclusion
The advent of technology, on the one hand, has brought about various changes in the finance industry. It has evolved the ways financial organizations offer their services. They are able to cut costs, reduce human errors, and even offer better service to their customers.
On the other hand, technology has helped consumers with access to their funds. They feel more in control of their finances as they can view their account details in real-time and know what they have so they can make informed decisions.
It makes it easier for consumers and businesses to engage in transactions. The revolution is beyond helping banks to make more money but also paving the way for a more collaborative and secure world of finance for both the financial service providers and their customers.
