By Wisetek Store
As technological innovations and digital services become an important aspect of daily life, the financial sector is no exception. Emerging innovations have paved the way for new services which, in turn, have disrupted existing services.
Digital transformation has become a permanent trend, thanks to the emergence of new financial services. With this transformation, consumers have begun to turn to digital products and experiences, forcing financial companies to rethink their existing playbooks.
As this revolution continues to impact the financial sector, several questions will need to be answered. Here are examples of such questions:
Are traditional stores still necessary or even viable?
What kind of empowerment has the modern financial customer received?
What products and services can a bank use to meet the needs of its customers?
Should banks consider investing in the digital landscape?
Below is an overview of some of the key changes that have helped transform the financial industry.
1. A changing workforce
Emerging technologies lead to the development of new professions. As a result, the workforce of financial institutions keeps changing every few years. According to a study by LinkedIn, some of the best jobs in this industry include:
While this continues, traditional jobs have forced the existing workforce to learn new skills to better meet customer needs. Examples include HR and project managers, salespeople, and customer service representatives.
Advances in the technology industry, and more so in AI, have helped create an environment in which traditional positions risk becoming obsolete. The only way out is for the workforce to learn new skills that will allow them to confidently meet the growing challenges.
Fintech refers to an inclusive term used for financial institutions, for example, banks interested in using existing software and hardware capabilities. It can also refer to the systems in question.
While the term today mainly refers to digital banking technologies such as blockchain technology, wallets and digital banks, it referred to credit cards and ATMs in the past. Automated chatbots, expense tracking, and online budgeting tools are good examples of how fintech has changed the financial industry.
Weak points at every level, for example, customer service and budgeting, are dealt with quickly and competently. Today, robocalls can alert you when a suspicious charge is made to your bank account. Do you remember when you had to call the bank to solve such problems?
These are examples of technologies that are transforming the financial industry and taking it in a whole new direction. Financial planners, credit card companies, lenders and banks have had no choice but to do everything in their power to try to catch up.
The only thing that remains true is that Fintech is here to stay. It will continue to grow rapidly, and there may come a time when it needs to branch out in new directions. You can be sure it won’t slow down for the foreseeable future!
People often associate blockchain with cryptocurrencies like Bitcoin (CRYPTO: BTC). But the reality is that this technology offers many opportunities in various sectors. Blockchain uses a ledger system that uses stringent controls allowing for verifiable data.
While this may seem like a technology best left to computer nerds, it is a technology that will easily transform the world in the coming days. Its ledger system has helped create trust among its users, reducing human error and increasing transparency.
This explains why banks, AI companies and stock exchanges have quickly adopted this technology. In the future, blockchain and its associated technologies are likely to have a significant impact on logistics technologies and the financial services industry.
4. Digital banking
Not so long ago, banks offered incentives to customers to open a bank account. Offers such as toaster ovens and tote bags quickly gave way to new offers for refunds, free checks, no fees, and maintenance fees.
Banks made these offers in hopes of luring customers through their doors where they could then make a sale. Today, banks have no choice but to provide certain features, as they are part of the digital landscape.
For example, it’s hard to imagine a credit card company or a bank operating without a mobile app. The app should allow account holders to pay bills, send money, and track expenses.
Digital banking has become the “new normal” and goes beyond online access to customer accounts. Over the past few years, digital banks have become more accessible and widely accepted by the public.
5. Artificial Intelligence and Machine Learning
AI and machine learning are expected to leave a huge mark in the financial industry. Currently, credit card companies and banks have started using complex algorithms to detect and prevent fraudulent transactions.
Multinational-backed Fintech startups have helped launch some of these technologies. Thanks to this, they have improved the customer experience and improved customer service.
Financial institutions use similar technologies to protect login credentials and mobile banking information. Besides fraud detection, companies are also using AI and machine learning to comply with regulations and gather insights into consumer behavior.
There is no doubt that technological innovations have changed the way people perceive the world around them. As seen above, the digital revolution has had a big impact on the financial sector, and this is not expected to change anytime soon.
Digital has touched nearly every aspect of the financial industry, from how consumers analyze their financial health to how they bank. You can expect more changes in the coming days as digital technology continues to evolve.
This article was submitted by an external contributor and may not represent the views and opinions of Benzinga.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.