New technologies are changing the way we live and view the world. Finance is just another area of our lives that is being transformed by the tech. The financial industry around the globe is changing at a high speed, forcing specialists to adjust and common citizens to learn new benefits.
The technology already changed the way we make payments, transfer money, get loans, and manage our resources. In many ways, technologies have made finance better. In some cases, it cut down workplaces and hiked expenses. Experts from Ottawa’s leading IT Services Company shared a few ways tech transformed finance forever.
1. Blockchain Technology
Blockchain technology is transforming the way we make payments by taking the third party out of the process. It allows common customers to feel safe about their financial transactions. Potentially, blockchain technologies are decreasing the value of traditional finance. Banks and other financial institutions are currently struggling to understand which effect this technology will have on them in the future. No one is contesting the fact that the impact is unavoidable.
2. Process Automation
New technologies allow the finance sector to use special skills to automate a variety of manual processes, which again leads to minimizing the workforce. This also helps them offer high-quality services to new groups of customers, who couldn’t have taken advantage of them before. For example, robotic advisers, such as FutureAdvisor and Nutmeg are currently available to a bigger number of people, making financial advice more accessible.
3. Data Availability
Social media, banking apps, and online questionnaires have given financial institutions an easier access to the customer data. Today, it takes a bank much less time to collect all the necessary information in order to make a decision about granting a loan. People and companies are becoming more and more interconnected, giving financial institutions new ways to use the data.
The same information is available to insurance companies, which take advantage of it to create better-suited insurance policies.
4. Better Customer Experience
AI-based chat bots are making user experience in banks more convenient. Meanwhile, a variety of payment apps and programs is keeping the client satisfaction higher. An AI-bot learns the customers’ needs and behavior by tracking their financial transactions. Using this information, the bot can offer spending tips and make the required financial information quickly available. The bots can also monitor the financial transactions in order to discover fraudulent activities in time.
5. Improved Financial Reporting
Financial reporting within a company is a time-consuming and often erroneous process, which requires many resources. The appearance of special applications and software is automating the system while making the necessary information available for analysis. The variety of financial programs has made it easy for businesses to grow and develop.
Each new technology in the financial sector is taking various industries to the new level. The main advantages of such transformations are speed, transparency, and automation.