The financial service industry is under immense pressure to shift to becoming more digital. It’s easy to see why, too. Consumers today want everything faster, easier, and cheaper than ever before. That’s impossible without embracing new technologies like mobile banking or social media marketing. Below are some of the ways technology is transforming the financial services industry:
1. Mobile Banking
Mobile banking is the most obvious way technology revolutionizes the financial services industry. As consumers become more and more dependent on their smartphones, it’s both practical and cost-effective for banks to offer mobile banking as an option. For example, online banking isn’t difficult or expensive for mobile users because it’s done through a browser on a laptop or desktop computer. You can also download applications for an iPhone or Android Smartphone to access your bank accounts and view recent transactions.
2. Real-time Data
The rise of real-time data directly results from technology’s impact on the financial services industry. Our world has become increasingly connected, which means transactions can happen anywhere at any time. You can transfer money to or from a person or business in another country instantaneously through a bank with locations around the globe, or you can check your account balance on your laptop while you’re away on vacation and know if there’s been an error that needs fixing.
3. Social Media
Social media has dominated the marketing landscape in recent years, and it’s not slowing down anytime soon. Social media is influencing billions of dollars in spending every year. Leading financial institutions such as Bank of America and Credit Suisse have set up Facebook pages to keep customers informed on their latest news and products. Additionally, LinkedIn is one of the most popular social networks for professionals because it’s used for job-hunting and building relationships.
4. Equity Funding
Equity funding is a new way for companies to raise money by selling shares in their stock. Many typical investors have shied away from equity investing because of the complex nature of its financial processes. Still, there’s been an extraordinary increase in the number of companies raising money this way as firms looks for ways to ease access to capital. Predictably, this new way of raising money has added fuel to the volatile stock market and created new tools that enable financial institutions to help start-ups find their footing financially.
Conclusion
We’re living in a time of immense change, and that’s especially true in the financial services industry. The ways we manage our money are changing rapidly, and technology is at the heart of it all. As consumers, it’s important to understand how this evolution is happening and its implications for our financial futures.
