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.
Automated teller machines, credit cards as well as debit cards, credit scoring and indexed mutual funds are among the famous examples of technological changes which have greatly affected 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 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. 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. 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.
Even if this is understandable, it is still not a better situation to be in. 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.
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.