NOTE: This was written by Adam Smith and edited by Jiro Honda.
Everywhere you look, technology is disrupting normalcy in the world of finance. Innovations are unfolding in all finance sectors, resulting in new frictionless and user-friendly solutions.
Technology is changing the role of financial institutions and how consumers relate with these institutions. Both parties are benefiting from easier processes, efficiency, fewer errors and improved communication. Let us look at four ways technology has influenced the finance industry for the betterment of all.
1. Better visibility and insight
Thanks to technology, financial institutions can avail financial data promptly. You can check your account balance, track your spending, check your credit score or apply for a loan online. The finance industry is also adopting Artificial Intelligence and predictive intelligence to gather user data, analyze it and make cash flow decisions and forecasting.
Technology is eliminating human biases in forecasting by making data-backed predictions. It is making scenario-planning easy and comparing what-if situations more accurately.
In the past, many financial tasks were manual, repetitive and very tedious. Thanks to automation, all that is in the past.
Machine learning and robotic process software now handles processes like check deposits, fraud detection, compliance, account opening and loan prequalification. Machines can quickly scan documents and receipts, track and categorize expenses and master rules for verifying bank security procedures.
3. Online lending
Before the financial crisis from 2007 to 2008, online lending or peer-to-peer lending was not even a thing. It was born out of necessity when banks started applying strict regulations to reduce irresponsible lending.
Today, online lending has become commonplace. It was made possible by an industry that rose to the occasion when banks withheld money.
Even traditional banks have jumped on the online lending bandwagon. Through superior technology and innovations, the industry is growing very fast and consumers cannot be happier. Online borrowing is quick, easy, convenient and flexible and no one misses long bank queues. Even accessing a title loan is as easy as typing “title loans near me” on your favorite browser.
4. Foundation of financial transactions
Technology is disrupting how financial institutions operate. It is changing how we move money and sealing any security loopholes using blockchain and biometrics and as new technology is released, financial institutions may be different than they are now.
Sending and receiving money will happen without banks and lenders will be matched automatically with borrowers via a public ledger system. Blockchain is taking the security of transactions to a whole new level, making money transfers easy and secure. It is amazing to see apps demystify financial data, automate tasks and simplify our lives more.
About the author:
Adam Smith is a content writing guru at Contenterist. He is adept in IT as well. He loves to write on different topics. In his free time, he likes to travel and explore different parts of the world.