TechsPlace | Technology has already changed the way modern business operates and it continues to make big changes in our lives.
Nowadays we have special medical equipment that can define dangerous living conditions, alarms that can identify poisonous substances in the air, and computer software that is smarter than ever before. Information technology concentrates on the establishment of electronic networks that alter information.
The advances in information technology increased the popularity of online finance as financial transactions inevitably involve the exchange of the information. According to Professor Jane K. Winn from the University Of Washington School Of Law, “Financial organizations were the first in designing the global information economy that we have today.” Finance depends on technology these days.”
The History of Financial Technology
The New York Stock Exchange decreased its trading days in the 1960s as the volume of trades at that time was too high to perform manually. In the 1970s, the development of computers and local networks brought affordable and quick access to the finance industry. The computers were becoming more and more affordable, which boosted the development of small financial companies that performed electronic data processing.
Meanwhile, the trustworthy and speed of information technology encouraged the formation of nationwide financial services, including credit card processing and electronic check. Nowadays businesses can not only use credit cards for getting quick financial support but also take out small business loans without credit check Personal Money Service performs online.
Affect on Customer Service
A recent report by PwC has shown that 77% of financial organizations will encourage further innovations, while many businesses realize the destroying nature of FinTech (financial technology).
Probably customer service is the area which is greatly disrupted by FinTech. Several years ago every successful financial company needed a reliable customer service team. Only trained staff members could handle financial matters, solve money problems and provide assistance to customers.
These days, the chatbots are replacing customer service and interact with clients. For instance, an Al is constantly evolving and becoming smarter but it lacks a human touch. The obvious benefit of such chatbots is that now there is no need to pay a staff member as a machine can work for less.
Banking has recently been a thing that was traditionally done non-virtually. Consumers used to go to their banks when they wanted to transfer funds, withdraw money or just sort out their finances. Clients would talk and interact with staff members inside the bank. These types of premises are quickly becoming redundant these days. Now the consumer only needs to press a few buttons in order to pay for things or transfer their money.
We are living in the age when people can have access to their bank accounts on the computers, phones, and tablets. This is something that really impacts the whole banking sector as well as consumers.
The identification and detection of fraud would be equally done by men and machines in the past. The system used to help people find prospective fraud transactions, but only trained staff members defined whether there was a fraudulent activity on the bank account or not.
Now Al is already able to both detect and identify fraud. This machine can significantly help the potential victim by tracking their history and predicting the likelihood of fraudulent activity.
Of course, machines can perform all these actions much faster than humans. That’s why there is no more need for big fraud teams. They can be cut down to just a few individuals to control the machines.
On the other hand, there are certain advantages of financial technology. First of all, it brings finance to a whole new global level. Professor Jane K. Winn states that financial markets have become “organized and global markets working through networked computers.”
Before the popularity of information technology financial markets weren’t able to react to big developments. And now, thanks to the Internet, insurance companies, lenders and other financial institutions have continuous access to credit ratings and credit scores which is necessary for finding financially accountable customers.
To sum up, if we learn to balance between manual intervention and technology, we would be able to further revolutionize the finance industry and have benefits for both consumers and businesses.