How Technology is Shaping the Financial World
Technology is continuously shaping the world around us. It can be seen anywhere and everywhere, both in people’s homes and walking outside. Given its ubiquity, it’s important to note the effect it has on the financial industry. The processes which people use to obtain money and spend money have drastically changed since the last century, and they continue to do so. There is now on-the-go accessibility to your bank information no matter where you are thanks to people’s smartphones. Moreover, artificial intelligence, while still being finessed and developed, will impact the industry massively. For the full list of how technology is shaping the financial world, continue reading below.
On the go accessibility
No matter where you find yourself, you will quickly notice that almost everyone has a cell phone either in their hand or pocket. What does this mean? Gone are the days where you have to physically step in a bank in order to transfer money or make a payment. The majority of people now has a smartphone on them at all times, which they can easily use to access their bank accounts online. Convenience is key with these advancements, and the apps are ever user-friendly for this reason.
You don’t even need to ask your bank in person if you have any financial questions or need to obtain a loan. Instead, you can compare your options online to find the best loan for your needs. You simply have to go on the necessary website, create an account, file the claim and receive the money. It’s easy and simple thanks to the constant innovation and technological advancements.
Computer systems are powerful tools that can perform various intelligent tasks. Already, the effects of artificial intelligence can be seen in the financial sector as people can use either voice commands or face recognition to access their banking information. Soon, people may even be able to ask those online apps questions about their spending habits, and they will answer back right away with the best advice or next steps that should be taken. As of right now, banks are continuing to incorporate AI into their operating systems, and the future could very well be populated with this type of technology.
Think back to the last time you had to take out money from a bank. How quickly were you able to do it? Most likely, you stopped at one of the many ATM’s that were around you and you were able to take out the cash without a single problem.
Technology continues to speed up the process of all money-related ventures. You can see this even in the use of bank cards, and how quickly people can simply tap their card on a machine to make a payment. Even going into your online account, you can easily navigate, transfer money, withdraw or even deposit necessary cheques.
Social media has changed the way that the financial industry markets their businesses and targets consumers. After all, many people have at least one type of social media account that they spend a majority of their time on. These platforms can even assist the financial industry when designing their systems, as they can offer financial services through the apps, such as Facebook or even Instagram.
Technological advancements are even affecting the level of security that the financial world provides. For instance, fraud can be detected more easily than ever. Your bank will often even send you emails letting you know about suspicious card behavior, especially if it was used in an area that you are not typically located in. Yet another example of increased security can be seen when you call your bank, as there are numerous steps involved until they finally answer your questions to make sure that you are truly the card-owner.
Alongside everything else also comes an increased sense of transparency between the financial industry and the people that rely on their banks for money. The general public is made aware of all the various policies and processes that a bank undergoes. After all, people always want the best possible rates and fees when they sign up! All needed information can be found online, accessible by both mobile devices and a computer.
Cryptocurrency is a digital currency that is used for transactions and exchanges, and the news of it has spread far and wide. This is an instance where there is no need to go through a bank, and all transactions are always secure. It is challenging the world’s current economy although no one can say for sure if it will be the future of all financial transactions. For that, you will have to wait and see.
Robo-advisors are there as an alternative to the financial advisor. They help people manage their investments but only do so through online software. It is quicker, easier and even cheaper to get the opinion of an online system as opposed to an actual person, and that is why people often choose this option.
An ever-changing future
One thing is for sure, and that is the fact that technology is ever-changing and the future will continue to evolve as a result of it. No one can say for certain what other new innovations will be introduced on the market that will change the financial sector, but it will not remain stagnant. There may even come a point where virtual reality will be picked up by the financial world in some way. Current banks that do not adapt to today’s innovations fall behind the ones that do.
The importance that money has over everyday life is big. People’s hobbies, homes, family life, school and more all require money. It is for this reason that it is important for people to understand the current financial industry and where it is headed to in the future. A long time ago, there were no bank cards, ATMs, online banking, AI, and so on. People could name today’s time period as the age of technology and information, given the constant innovation and limitless amount of information that can be found online. Of course, there is no way to predict the future, but it’s always a good idea to look at the current trends to get an idea of what could come.