These days it’s hard to imagine doing any sort of financial transaction without the use of technology. Most don’t see how much the financial industry has impacted our lives on a day-to-day basis. Since the advent of the ATM in the 1960’s, technology has grown synonymous with the financial industry. Other than depositing and withdrawing money from the local ATM, how has technology improved the financial industry?
Whether calling a lending institution or researching information and performing tasks online, customer service has grown and changed from being a human-to-human interaction to being automated. With the use of artificial intelligence, pre-recordings, and push button responses, customers are able to obtain assistance, information, and services more easily. For more serious matters, companies continue to employ people able to better assist individuals. However, automation has cut down on the amount of individuals a company needs to hire, train, and employ long-term. This saves companies on overhead costs that they then extend to the customers.
Along with making finances a more efficient experience, financial technology, more commonly referred to as FinTech, has made making financial decisions easier for individuals. Information on banking terms, rates, and incentives is accessible with the click of a button. Individuals, as well as businesses, are able to research and compare in real time which financial institutions offer the best services and rates for their needs. Being able to make more informed decisions increases the investment possibilities and opens doors to more opportunities.
While individuals and businesses use technology to obtain information about what services they deem best, institutions are able to gather information, or data. Financial institutions use this data to strategically target customers who are most likely to purchase their products and services. This data gives companies the opportunity to determine what incentives best attract customers. For companies, this means attaining the right customers for their products. It also means that companies are able to compare themselves against their competitors to determine which rates and services to make competitive. As a result, customers are able to reap the benefits of these competitive advantages.
Another improvement in finance that has contributed to the improvements in finance over the last century is the ability of companies to communicate with clients and each other to get information quickly. Companies now have bank balance checking, withdrawal, messaging systems, voice chat, video chat and so much more; all of which allow them to share information with each other in real time. This means that they no longer have to spend hours and even days attempting to get accurate communication from one company to the next. Now that banking institutions and investing firms are able to communicate instantly, the consumer wins with direct access to accurate and up-to-date information.
Having accurate information allows for consumers to make informed decisions. As an individual or business owner, clients can compare costs, rates, and even reviews to determine which company has the best assets to meet their needs. Transparency is becoming more and more common in the financial industry. Consumers want to know what they benefit from before signing on and making a commitment with any institution.
Advancements in technology also mean that it is now easier for individuals and businesses to obtain credit lines and loans from other lenders. Before the advent of the internet, it was a time consuming process to apply and even qualify for loans. Thanks to the advances in finance, it is much easier for an individual or even a business to obtain credit lines.
Technology has become so intertwined with finance that it is now impossible to conceive of daily life without it. Not only has technology made daily life easier, it has simplified and significantly improved individuals’ and businesses’ approach to finance. Being an experienced financial advisor in the industry, Kuran Malhotra recommends performing detailed research online as well as consulting a financial advisor to get a full understanding of how technology changes and affects your approach to your financial success.