What are the Impacts Of Technology in the Financial Services Industry?
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 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 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. In line with this, people are now using this cards to do their transactions everyday since it does not require you to go to the bank and you can do it anywhere.
As good as it sounds, these changes brought upon by technology has caused a lot of problems to some financial services firms. When there is immediate or fast change happening in the industry, individuals in the business and financial sectors will have a hard time coping with it since it will cause a drastic change in the way things are working therefore increasing burdens and work loads. According to research, individuals prefer to have internal changes with regard to financial services than external which includes innovation in technology.
This is not a position anyone would like to be in even if it is understandable. 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.
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.