Technology is rapidly evolving, with an increasing number of people using the internet daily. The growth has translated to notable changes within critical sectors, including the financial industry.
Here are some of the most significant ways that technology is impacting finance:
- Increased Use of Mobile Devices
More and more people use their mobile devices to access the internet, make online transactions, and conduct financial matters. For banks and other establishments involved in this industry, offering mobile-friendly services has become a priority, as it is important to match the technological pace.
- The Rise of FinTech Startups
There is an increasing number of people who prefer to conduct transactions through mobile apps rather than visiting brick-and-mortar bank branches or websites. This preference has fuelled the rise of FinTech startups that offer app-based financial services, including payments and peer-to-peer money transfers.
- The Need to Provide Greater Security
The use of smartphones has also led to increased security concerns regarding financial matters, especially when it comes to storing information on mobile devices. This is why there are now more stringent authentication processes for accessing online accounts – including email, social media platforms, and other websites where one’s personal financial information may be stored.
- Greater Transparency of Financial Transactions
With FinTech apps that use blockchain technology, each transaction can be monitored in real-time to ensure transparency and help users track the movement of their funds. This also helps law enforcement agencies detect money laundering, terrorist financing, and other criminal activities associated with certain transactions.
- Availability of Financial Services Worldwide
Aside from the growth in FinTech startups, there are also established banks that have introduced new products and services aimed at expanding their reach to prospective clients worldwide. The increasing popularity of online transactions has made this possible, while blockchain technology provides a way for users living under oppressive regimes to make secure transactions by converting their funds into cryptocurrencies.
- Improved Customer Experience
There is also a notable increase in the number of customers who prefer to conduct their finances through mobile apps. This trend has prompted banks and other financial establishments to provide more robust mobile features, including updated security measures for protecting users’ information and real-time tracking of transactions. Financial institutions have noted this preference for greater convenience, which is why many have started providing 24/7 customer support to clients.
