What are the Impacts Of Technology in the Financial Services Industry?
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. 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. The machine is available 24 hours a day everyday so the clients won’t have to go to the bank anymore. 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. 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. According to research, individuals prefer to have internal changes with regard to financial services than external which includes innovation in technology.
Being in a situation like this is not good even if it can be understood. 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.
Even though this talks about a change in the opposing part, there may be more to it than just this. 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. Taking into account international payments and peer to peer lending, it is very well-known that small software providers are upset about these old ways in dealing with finances.