If you had to list all the elements currently impacting the financial sector, technology would be right at the top.
In a lot of ways, finance has always been a tech-driven affair. But IT itself evolves rapidly, which means that it also has the ability to catalyze transformative changes in finance, as well. In fact, a few approaches aren’t just reshaping the financial sector as we know it today. They’re changing the very definition of what might be possible tomorrow.
- A Foundation of Advanced Technology
In finance, success always comes down to your ability to make the right decision at the right moment. Historically, this requires you to wade through massive volumes of data in order to have a “complete picture” to work from. You need to fully understand your situation so that you can properly assess it and try to anticipate where it all might be headed. That’s an oversimplified description of the business dealings of financial services professionals, yes. But in a “bird’s eye view” sense, it also describes exactly what advanced technology is helping people with on a daily basis.
Over the last decade, advanced tech like artificial intelligence, the blockchain, and data analytics have practically reshaped the entire traditional financial landscape. Take AI in real estate, for example. Consider the many factors you must assess before determining whether a property is a good investment. You need to know as much as you can about the history of the property itself. You need to fully understand comparable properties in the area and what they’ve sold for. You need to know not just what the local community is like but where it’s headed. Potential market fluctuations. Interest rates. All of this constantly changing information is necessary before you can even consider investing in a piece of property. All this takes a tremendous amount of time to even compile, to say nothing of how difficult it can be to make sense of it all.
Artificial Intelligence, on the other hand, has already changed all that. Right now, there are AI-powered analytical tools that are ingesting information like this in real time. They spit out assessments about properties and areas so that real estate professionals can constantly stay on the cutting edge of what is going on and which moves are best for their careers. It allows people to spend less time wading through data and more time acting on the critical insight inside it, which in and of itself is the most important benefit of all.
- The Streamlining Nature of Automation
Regarding saving time, that’s another benefit that technology – and automation in particular – has to offer the financial sector.
Automation tools can be an excellent way to streamline processes, especially when they also replace the old-school paper-based processes that people used to rely on. A lot can go wrong when your business is still living in a world of paper. If multiple people have to collaborate on a document, copies must be made – meaning you’re now opening the door to accidentally duplicating information. Human error is always a factor in that important documents can get lost. If you don’t have an easily understandable filing system, you’ll spend just as much time searching for something as you will actually extracting value from it.
Automation changes all of that almost immediately. It can take processes that formerly required 10 steps and cut them down to three. It makes sharing information across a business instant and effortless. There’s a clear chain of command in that you can see who is accessing which document at what times and why.
All this goes a long way toward enhancing organizational efficiency, which also helps reduce operating costs. The more time you can free up in someone’s day through automation, the more time they have to work on revenue-generating tasks.
The same concept applies to machine learning algorithms, which empower data-driven decision-making. You’re making better decisions far faster than ever before. Even the aforementioned blockchain has its role to play, creating an environment where transparent transactions become a forgone conclusion. The blockchain is transparent by its very nature, creating an environment where trust and visibility are the new norm.
- An Era of Fintech Innovations
In a broader sense, it’s important to understand that the financial sector lives and dies based on the quality of the customer experiences it can offer. In order to stand out in a crowded marketplace, you need to offer more than just basic services. If someone wants to open a checking or savings account, there are an endless number of places that they can use to do it.
Instead, financial services organizations need to go deeper. They need to focus on personalized relationships where the customer is put front and center. Fintech innovations like mobile banking have been a big part of what makes that possible. Mobile finance apps allow people to take complete control over their finances anywhere, anytime, and from virtually any device. The same is true of something like mobile wallets – a tool that people can use to replace their actual wallets and legitimately make their lives easier.
Technology in Finance is Here to Stay
Technological innovations have helped refine customer experiences across the financial services sector and that is an excellent position for both businesses and consumers to be in.
Overall, while the technology itself may change, the lasting impact typically remains the same. You’re talking about introducing solutions into the financial sector that empower agility, enable responsiveness, and help workers do more with less on a daily basis. All this in an industry that has traditionally been resistant to change (to put it politely).
These dynamic shifts immediately underline the financial world’s embrace of cutting-edge solutions. Even if you’re resistant to change if something comes along that promises to allow you to make more money, you’re likely to at least sit up and pay attention. That’s precisely what has happened over the last decade in particular. Now, tech-driven approaches like those outlined above promise a future where finance and technology become one and the same.
Image sourced from Shutterstock
This post was authored by an external contributor and does not represent Benzinga’s opinions and has not been edited for content. The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice. Benzinga does not make any recommendation to buy or sell any security or any representation about the financial condition of any company.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
