The rise of technology and digital services created a new form of conducting business across all industries worldwide including the financial sector. Banks currently use modern techniques to deliver services such as payments, deposits, transfers, and withdrawals. These activities of financial institutions never existed previously but presently keep changing as the digital world continues to advance the digital market.
Modern Payment Services
It is not long when individuals used to pay bills and make money transfers which usually took days to reach the recipients. The development of digital disruptors such as Paypal, ApplePay, and Venmo took the industry to the next level transforming the payment methods. Subsequently, small loan providers have also used electronic lending technology such as Stripe which allows sites to analyze online transactions which reduce complexity for small and startup e-commerce companies in conducting business.
The existence of low processor, short loan processes and reduced footwork have given a new mode of payments without cases of delays and intervention of money online. Despite the payments methods being accompanied with an automated clearing house fees, the processes tend to be quick, safe and reliable compared to previous methods which lacked any mean of technological advancements.
Hardware and Software Systems
In the early 1950s and late 1960s, the use of Fintech, hardware and software systems in the financial sector began. It involved credit cards and the use of Automated Teller Machines to offer banking services to clients. Before the adoption of such services, earlier banks used cash to cash services which operated without ant means of technology. The technologies available in the 1950s have significantly transformed across all banking institutions presently while all sectors are hurrying to catch up.
Currently, new forms of hardware and software technologies have developed ranging from wallets, blockchain tech, ERP solutions (for online budgeting and banking) and robocall services. The financial services have eventually portrayed a unique and advanced mode of service delivery through Fintech which is here to stay while the digital world keeps changing.
The revolution of the digital world in banks has eliminated Incentives offered in opening accounts and tote bags with free checking, reduced fees or cash backs. In the today world, a banking institution or Credit Card Company experiences difficulties in convincing customers to acquire services without a mobile app. Digital banking is a modern feature which enables you to manage your financial services without the need to visit a bank.
Among the largest digital banking platforms in the United States are the Ally Bank and Simple Bank which provide online services to pay bills, withdraw and track your expenses. Traditional banks have also adopted digital banking method which also attracts a more significant number of customers in the system. The revolution of digital intervention has significantly transformed the banking system in the world through the elimination of physical financial institutions.
Artificial Intelligence and Machines
Similar to other sectors which adopt AI and machine learning, the financial industry has also approved the use of sophisticated algorithms to eliminate fraudulent activities. Pioneered by various Fintech companies operated by established organizations, the development of AI and Machines in the financial industry has significantly managed to recognize and prevent suspicious activities that may result in theft. For instance, Microsoft developed an AI program which detects fraudulent and establishes mechanisms which threats in two seconds.
The technology is applied across all banking areas which also include mobile banking and sensitive logins which are crucial credentials for your banking securities. The benefits of AI and Machines have contributed to fraud-free financial services, low cybercrime reports, comfortable and safe banking, and provision of insights on customer behaviours. The AI and machine technologies have to a greater extent revolutionized the financial sector through the intervention of the digital world.
Blockchain technology aims at establishing new form currency such as bitcoin and cryptocurrencies in the financial industry. According to different financial analysts and managers, Blockchain technology is the original form of payment methods in the future which offers the utilization of auditable data. In 2017, firms which utilize Blockchain raised more than $240 million through the venture capital market making it be on the rise since its establishment.
Some of the viral benefits of Blockchain tech is building trust among users, reduced human interferences and increasing transparency among the service providers and the customers. The transaction processes with the use of Blockchain technologies have attracted AI companies, stock exchange markets and a broader range of banks worldwide. The logistics and Blockchain technologies existence today highlights new features in the banking sector that never existed in the past years.
Other revelations of digital intervention in the financial sector include a changing workforce which includes investment banking analysts, engineers, and paraplanners. The development of new skills to update the existing technologies such as AI systems also provides a continuous development of technology. The transition of technology also gives rise to new teams of salespersons and innovators who work with the existing tech to develop more advanced technologies in the future.