How Technology is Shaping Financial Industry

Technology has given a major transformational shift to the businesses in how they deliver their service and reach the customers. Today, every sector of the industry is flourishing because of the advancement in technology. And, the finance sector is no exception here. Gone are the days when people used to stand in the long queue to apply for a loan. Things have changed drastically as one can today easily apply for a loan or any financial products from their phone or computer. This saves a lot of time and money that can be dedicated to other productive things.

Technology Financial Industry

Now, a new term or concept has been coined where the amalgamation of finance and technology is known as financial technology “FinTech”. The term indicates the companies that incorporate technology to provide financial service in an easy and better way. Here, in this blog, we will be discussing how technology is transforming the financial industry in every way. So, let us get started.

  • Improved customer service

Whether it’s a small firm or large scale organisation, a better customer is vital for the success of any business. Since, the finance sector is in the public service industry, focusing on customer satisfaction must be the priority.  However, this was something that was very challenging earlier. But, now finance-based companies are now using AI to ensure that the customers are able to receive assistance at any hour of the need.

The feature of chatbots that are actually AI designed product helps in resolving the issues with the minimalist approach.  This also helps in improving the credibility of the company as the customer knows that his/her problem will be addressed within time.

  • Introduction of online banking

Long gone are the days when you had to stand in the long crowd of the bank to apply for the loan. This run of the mill method bothered the majority of the people. But, today one can easily apply for the loan at the comfort of their home by using the internet. Many new lenders have evolved in the market who offers online banking service. So, whether it’s applying for a payday loan or taking out Small Business loans from, you can easily apply directly online. All you have to do is submit your documents and then wait for the approval. If your application is approved, the amount can be transferred into your account within a few hours. So you see, getting a loan was never so much easier.

  • Better security

Every financial company keeps valuable information about their customers such as bank details, account number, address proof and many more. Thus, it is very necessary for the companies to protect these personal data at any cost. A single security breach can result in a catastrophe where all the sensitive data of the customers can be stolen by hackers. With the help of technology, companies are able to undermine all the security aspects. The advanced system helps in tracking all the transactions done by the customers. In case of any weird or unusual transaction, the user will be notified immediately so that action can be taken before anything wrong happen.

  • Getting funds got easier for the SMEs

Small business or start-ups require funds in their initial stage for the development. For this, they tend to go either for the investors or the banks for financial assistance. Unfortunately, getting funds from both of them is not an easy task as it involves a time taking process. Now, this is something is that any start-up can afford because they have to look at other business aspects as well. Small and medium-sized enterprises are now able to get funds easily because of the fast lending process of private players who have emerged in the market.

The new-age lenders don’t rely very much on financial factors such as credit history, credit rating and others to approve the loan. They take other factors into consideration to evaluate the creditworthiness of the borrower.

  • Adoption of cloud

The benefits of cloud technology are known to all. And, this is the reason why today every sector of the industry has started to use it. The finance sector is also using the cloud but the progress is not very high in the current scenario. Yes, companies are using the cloud for the better and effective business approach but still, there is a long way to go. The cloud allows the businesses to carry out all your business tasks in a single centralized platform and without sacrificing the security. There is a gradual rise in the use of cloud technology in the finance industry and will be even higher in the coming years.

Wrapping up, the finance industry is in a paradigm shift. So, the way it looks and functions will entirely change in the future as the technology is being implemented in every component of the business.

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Article Author Details

Stacey Walsh