Today, just like every other thing, businesses are evolving too and there is no stop in between. The industries are adopting innovations that are altering their products, processes, and equipment. Similarly, the financial industry has witnessed a lot of innovations too in all this time. ‘FinTech’ is now a commonly used term in the financial sector and has changed the structure of the industry.
Here we have listed some examples of how technology is changing the financial industry:
Providing exceptional customer service is an essential business goal for any business. Previously the financial services would provide training to the staff so that they can help the customers and sort out their problems by accommodating them.
But today we see ‘chatbots’ in this sector that are a medium of constant interactions with customers. All of this is due to Artificial Intelligence that is evolving continuously to sort out customer issues. Although AI lacks human interaction it provides services to more people.
With the help of technology, you get more visibility of your financial data properly. For instance, you can check your credit score or the bank account balance online with a few clicks only. In the financial industry, Artificial and predictive intelligence enables users to make proper decisions related to forecasting or their cash flows.
Humans are known for bringing their biases in line when thinking about the future however technology makes the real data available and helps us to stay honest when making predictions or financial decisions for the future. With the help of proper visibility that technology provides us with, we can execute scenario planning and what-if options properly.
Previously people would go to banks physically for all financial matters as it was the only option they had, be it transferring or withdrawing cash, etc. Today online banking is becoming increasingly popular, it allows you to deposit or transfer cash with a click of a button.
Through online banking, we can access our banks with our computers, phones, or tablets and this is creating a major impact on the industry. This online banking plays a great role in an individual’s personal finance tracking software for this Reviewsed.com covered My EasyFi Review.
AI’s Personalizing Banking
Personalized or customized banking is a magic word that is now becoming common, all thanks to artificial intelligence. It studies an individual’s purchasing and spending patterns in such a way that banks and financial institutions can now execute personalized banking according to each customer’s unique behaviors.
AI’s personalized banking includes particular loan or credit offers, specific shopping deals, customer advising, etc. however, a technology overhaul is needed to provide proper personalized banking and some institutions still have to adopt this successfully.
Trading and Investing
It is a risk to put your money on the line for investing purposes, but to your relief, these risks are now easy to manage due to the increasing role of technology in the financial industry. The automated trading software has made it easy to monitor your investments, make use of algorithmic trading, and develop strategies.
For certain companies, this rapid innovation had made investing and trading advanced and more specific as compared to others. Through this innovation, the traditional closed-off industries are now opening up with a motivation to learn.
Technology advancements have their advantages for the industries and consumers, but this development can also be a risk due to fraudulent behaviors. With technology improvements, hackers are becoming more active with tools to hack credit card information. To deal with this risk, AI is coming up with components of fraud detection, this will help them to identify if the transactions made are normal or fraud.
Notifications like ‘Did you make this transaction?’ are becoming regular to see if any hacks are involved. All this is due to the power and ability of AI that has improved the methods for catching frauds that breach your privacy. Multi-factor identification is becoming popular as a better identity management tool.
Previously banks had all the power, whether it was about a loan, mortgage, or anything the bank’s approval was the major task in lending money. But today, due to the internet people have a lot more options for the process of getting their money. For instance, P2P lending involves no middleman in the lending process and directly connects individuals with private lenders for transactions and loans.
From the above examples, we’ve seen how technology is creating a different new world for us. We can have our accounts at our fingertips and make transactions. However, it is important to maintain a balance between manual interference and using technology and this would require efforts so that the benefits of technology in the financial industry remain fruitful.