Technology has impacted many sectors, the financial industry included. The digital transformation that the financial sector has undergone is without a doubt impressive, and things can only get better as far as technological innovation goes. As things stand, everyone has a story regarding how digital services have benefited their way of banking. There are many Fintech companies as of today, that have revolutionized the financial sector.
Come to think of it, nowadays you can comfortably take part in global forex and stock trade at the comfort of your home. You can easily find the best market to trade and start trading all from your phone or PC. All this is possible because of the milestones financial technology has made. Now, let’s get into details and see how exactly technology has leveraged the financial sector.
Remember the days when people had to visit banks to withdraw, deposit or transfer money? Well, it is safe to say that traditional banking is slowly disappearing into oblivion because mobile banking has taken the centerstage. Ever since mobile and online payments became a thing, life has been easier. You can invest, save money, make transfers all at your own convenience, anywhere, anytime. Not only that, even loans applications have been simplified with all the processes of borrowing money being carried out online.
In the United States alone, the percentage of Americans using digital banking is expected to get to 65.3 in the year 2022. Also, a majority of banking institutions are partnering with Fintech companies to simplify online and mobile transactions. It is a win-win situation for everyone, customers, Fintech companies and the banks. Banking services are now accessible on our phones or tablets and financial transactions are only a few clicks away.
Do chatbots sound familiar to you? Yes? That’s how transformed the customer service in the financial industry has become. Gone are the days when most financial or banking institutions would train their staff on assisting and directing people on how to go about various financial issues. All that has been replaced with artificial intelligence where most customer’s concerns can be handled by automated chatbots. While this move has affected human taskforces, it has proved to be efficient because chatbots are in operation 24/7, which means even if you need assistance all over sudden in the middle of the night, chatbots will provide you the answers you need.
Technology has made it easier for financial systems to detect and investigate fraud. Unlike before when individual teams would be tasked to follow up fraud cases sometimes without much success. Today, all it takes is to trail financial dealings or patterns of suspected fraud cases. A look at the history of the victim’s transactions takes less time, and so is compiling reports pointing towards a fraud that already took place or that was happening at the moment.
Fintech companies have invested towards ensuring that their online payment platforms and systems are secure and so have banking institutions. They also continue educating users using online resources on the importance of privacy when carrying out online transactions in order to avoid being victims to fraudsters. Detecting and mitigating fraud activities has for that reason been easier.
Look at it this way, while financial digitization has in a way affected human resources, we cannot overlook the fact that it continues to demand new skills. Since the whole transformation is a continuous process, a new taskforce has to be put in place in order to keep up with the trends.
Some of the new financial skills that are in demand in the US include software engineering and banking analysts. While traditional jobs have not been entirely replaced, they are still at stake as long as newer innovations and trends continue shaping the financial industry. However, as long as rising demands and emerging challenges continue to be part of financial digitization, the workforce will still be required.
It is difficult to ignore the changes that have taken place in the financial sector as a result of technological advancement. It is also all thanks to fintech companies that have helped shape the way transactions and anything else involving money is being carried out today. Notably, it is clear that more changes are coming so you better brace yourself for even more mind blowing advancements in the financial sector.