The impact that technology has had on the banking and financial industry is unprecedented, and it continues to grow stronger. As consumer’s needs and demands change, these industries are expected to adapt with them. Consider some of the primary ways that technology has and will continue to disrupt financial industries all over the planet.
The Rise of Cryptocurrency
Cryptocurrency has been around for a few decades, but it has grown in significance in recent years. As the world becomes increasingly tech-oriented, the world’s population can expect cryptocurrency to sway in value and become more important in modern societies. Cryptocurrencies are entries in a highly secure database (or blockchain) that is easily verifiable on public record, but it is extremely difficult to produce counterfeits. Since cryptocurrency has the capacity to remain more secure than normal currencies, it is a grand choice in a world that is threatened by hacking and identity theft. While previously thought to be a passing fad, banking institutions and other retailers are now accepting cryptocurrencies as a legitimate form of payment.
Automation and Jobs
Another way that technology has made a significant impact on the financial sector is through automation. For people who currently work in the financial industry, daily tasks that would have took hours to complete can be accurately completed in a few minutes, or even instantly. This allows financial workers to serve more people and reduces the chances of error that may occur with humans completing tasks by hand.
However, with the increased integration of the latest financial technologies, many jobs in the banking and financial industry are being phasing out. Nearly 50% of financial services jobs will be done by AI technologies in the next decade, according to the Mercury News. In the not too distant future, many people may use artificially intelligent software to perform most accounting roles, and harbor other positions that were once given to human beings. Some services include customer support, fraud detection, claims and insurance management, and predictive analysis.
Innovative Apps for Trading Stocks
In the past, one sought the wise advice of a investor or a stock broker, or interacted on bustling Wall Street in order to trade stocks. If a person did not have at least a few thousand dollars in capital, he or she was unable to participate in the stock trading arena. Trading apps have brought about revolutionary changes in the financial industry, and they make it simple for individuals who have a few hundred dollars to start making investments today. Now, there are applications available that allow the everyday individual to research, buy, and sell stocks over a cup of coffee with a mobile device.
Streamlined Financial Services
As technology invades the banking and financial sectors, these major institutions are being forced to adapt to the ever-changing demands of consumers and clients of all backgrounds. Streamlined banking services make it easy to handle business. With a smartphone, one can easily check their back balance, transfer and convert money securely, take out a loan, and make payments to nearly any store or institution online or offline. Being able to obtain credit repair services online allows consumers to obtain assistance without stepping foot in an office. A myriad of software is available to help both individuals and businesses make smarter financial plans, and even build better portfolios. This makes it easier than ever for consumers who desire greater convenience as financial institutions seek to offer a personalized experience more than ever.
Currently, banks are competing to provide the most satisfying services in an attempt to retain their clients. Financial Technology firms, or FinTech firms, are offering financial services to consumers, or are seeking partnerships with other major institutions. Older institutions are taking a hybrid approach and partnering with FinTech firms to remain relevant and meet consumer needs.
Tumultuous Peaks and Valleys in the Stock Market
With so many forces affecting the financial and baking industries, the stock market has become increasingly volatile. With the abrupt rise of startups, and the unexpected plummet of companies that one held a status set in stone, the stock market continues to ebb and flow like an unpredictable ocean. As technology continues to be integrated into the financial and banking industries, consumers can expect the uncertainty of stock markets all over the world to continue. Those who can buy or sell at the opportune time can find themselves submerged in riches.
As technology and automation continues to grow, one can expect the changes to continue in both of these sectors. Finding the best ways to secure banking and financial services will continue to be a priority in the future. Consumers and entities that embrace financial technologies can adapt to the times and obtain the spectrum the advantages it offers.