How Can Financial Services Be Affected by Technology?
The movement in bringing transformation in financial services are brought about by technology through digital financial innovation which causes a lot of change in the financial industry. As the case may be, digital financial innovation is the pavement of a new technology that changes the outlook of things in the financial 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 order for the old existing problems in the financial industry to be solved, there had been modifications made by technology in the form of devices such as the automated teller machine.
Automated teller machines are examples of modernization in the financial industry which gives the customer a lot of benefit since they can save on their time and money in going to the banks. Gone are the days when clients spend time and money to go to the bank since this machine is available for all you have to do is to click on it to do your transaction. In the same way, the use of credit and debit cards has outshine cash, contributing to all the financial changes in such a short time. A lot of individuals now a days already prefer doing their transactions through the use of debit and credit cards since it is safer (since you do not have to bring money with you) and easier than having to go to the bank.
A lot of financial services companies have been experiencing difficulty in connection with these changes. Senior leaders of a company or firm may have a difficult time in coping with all these fast changing technological components since they are used to the traditional way of things. 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. Even if you ignore these changes of modernization, you can get through for a few years at most but it will definitely not be enough to stay in the business considering the customer’s expectations and competitors strategies.
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.