How Can Financial Services Be Affected by Technology?
Through the improvement of technology, digital financial innovation is improving as well which enables change in the way things are working in the financial institutions. For the most part. There is a dynamic change in technology which will affect how things work traditionally since our world today is enormously improving every minute because of technology which can be considered as digital financial innovation in the finance industry.
The utilization of automated teller machines, credit scoring, debit and credits cards, indexed mutual funds and a lot more are notable examples of the important technological changes in the financial industry. In addressing old problems, there had been changes in the financial industry which may come in many forms including the utilization of devices such as automated teller machines.
Automated teller machines are a good addition to the financial industry since this technological device has brought ease and comfort to the clients since they do not have to go to the bank anymore to make their transactions. All you have to do is insert your card in the machine and input your details, since the machine is available all day every day, it has really been economical and the days of going to the bank and wasting time and money for a transaction is gone. In just a short period of time, the use of cash on hand had been overshadowed by debit and credit cards which is considered as one of the most popular financial innovations in the industry. It is now possible to make mobile payments because of the presences of debit and credit cards and a lot of individuals are already using this as a way to do their transactions.
In spite of these, there are still numerous financial services firms who are struggling to keep up with all these changes. The compliance and regulation of these innovative changes in the industry is increasing the burden and work load for a lot of individuals since not all can adopt to the fast rising changes brought about by technology. It was also found out through research that people are more open to financial services changes inside the company compared to what the outside world is bringing.
Even if this is understandable, it is still not a better situation to be in. Customers will eventually expect you to have these changes in your company and competitors will surely adapt to these innovative changes therefore if you are planning to continue with the traditional way you will be having a very hard time in coping up with the industry.
There may be more to it than just changes in the reluctant individuals. A lot of business establishments are already adapting to all of these changes for modernization since the competition is very stiff and since they can still have a lot of benefits from this. Small software providers are very disturbed about the disruption of these historic methods such as peer to peer lending and international payments. After all, people should protect their financial health especially relevant small business owners who are still learning these innovations.