technology has evolved at a rapid pace in the past few years. However, in today's age and time, the term “modern technology” is commonly associated with, let's say, a new electric car launched by Tesla or perhaps fitness trackers that keep track of your activities and thus, have the ability to tell what you ate 2 weeks ago. Your almost every single action can be recorded today, all because of tech advancements.
Modern technology is all about speed, efficiency, and effectiveness which is considerably light on the pockets as well. Technology has managed to revolutionize our world and how we perform our day-to-day activities by providing every necessary information at the expense of a click. The financial sector is probably one of the most influenced sectors because of this advancement. This is because the finance sector, like all other sectors, is always on the lookout to inculcate modern technological advancements that will most likely benefit the customer and the overall market.
Impact of Technology on the Financial Sector and Services
The working mechanism of the financial industry is rapidly changing and transforming after the introduction of modern technology. Newly found business prepositions are in full swing which includes crowdfunding, peer-to-peer lending of digital currencies, and mobile banking to say the least. Cryptocurrency is one such extension in the global economic structure. As hundreds and thousands of cryptocurrencies are being exchanged and traded every second. Crypto traders and investors are making notable profits by dwelling on the trading signals from platforms, like the Bitpal app. These trading apps are becoming a key player in the world of crypto and finances.
Organizations are always on a hunt for better and improved services that would aid the customers, and eventually the stature of the company. The majority of these companies believe that the improvement in customer service is a result of maximizing digitization in the banking systems. Companies get an insight into the relevant data of customer's experiences through software which helps the company in improving and becoming more efficient. It is a fact that advanced technology has given rise to unbelievable levels of ease regarding the access and the provision of data that results in the financial institutions taking full benefit of it.
Under these circumstances, the availability of social media and data shapes the customer expectations and helps the financial industries to come up with products that fit the consumer budget. They then know what audience to target and thus, they can take appropriate steps for its marketing as well. For this, the financial sector is always looking for ways to improve its customer service with the main competitors being Amazon, Facebook, and Google, etc. Several technologies are all set to change the financial sector for good.
Banking Technologies That Are Most Likely To Shape The Future
Over the past few years, people have faced different issues with reference to technology, which has surely changed the way we communicate, make purchases and investments, etc. Thankfully, modern technology has managed to work on the issues that it lagged in the past. Hence, making the process much easier than it ever was. They tend to be more efficient, more rapid, and responsive. They have the capability to reduce the errors up to a considerable degree, and most importantly, change the perception of the customers and how they manage their money and assets. Amongst the two banking technologies that are thought to be having the potential to change the future of the finance sector are Blockchain and Chatbots and Artificial intelligence.
Blockchain
Blockchain happens to be amongst the emerging technologies that the financial sector is adopting, slowly but surely. Blockchain is basically the technology behind Bitcoin and other such cryptocurrencies that provide utmost security to the clients. Blockchain has been in use by big and renowned banks and organizations. It has been regarded as one of the most important and significant opportunities for financial institutions in present times. This claim is supported by the reports presented by Accenture, depicting a total of $10 billion being saved by the use of blockchain. Its widespread use in the financial sector is an indication of its successful future, as it is considered the most appropriate solution of payments, minimal fraud in transactions, and many more features.
Chatbots and Artificial Intelligence
Chatbots and artificial intelligence have made a mark in today's world especially concerning the financial sector due to making smart decisions and being less time-consuming. They are being majorly used in digital transformation in banking, regardless of the level and size of the institution. Chatbots are usually referred to as artificial intelligence but AI is much broader than just chatbots. It manages and backs up the back office, delivery of the product, risk management, marketing, and so on. Artificial intelligence uses algorithms to achieve the same tasks previously done by a great number of employees in a relatively short time frame. Artificial Intelligence makes up for more responsive methods of communication with the customers which also reduces the chances of fraud to take place.
