4 Ways in Which Technology has Revolutionised Finances

4 Ways in Which Technology has Revolutionised Finances
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Technological developments have made a significant impact on the financial industry in the past several years. It have generated new financial propositions such as mobile banking, digital currencies, online investments and new payment systems.

It has shaped customer expectations by increasing the access to data and social media. Financial institutions are able to leverage consumer data to set their prices and market the products and services more effectively.

Here are some ways in which technology has revolutionised the finances:

4 Ways in Which Technology has Revolutionised Finances

1. Data is used more strategically

Consumer data has always been instrumental for financial institutions to make their decisions. For instance, bankers may inquire into the credit score before making any lending decision and a digital marketing agency would inquire into the customer search habits before marketing a particular service or product. Streams of real-time data have come into existence which is used by financial institutions to support their decisions. Data analytics are utilized more than ever before in order to alter the financial strategies. It doesn’t only help to serve the customers in a more efficient manner but also generate better revenues.

2. Online banking

Banks are not any more the way our descendants perceived. Even though traditional banks are still a norm, online banking has gained immense popularity in past few years. The whole concept of banking has revolutionized.

There are over 32 million contactless cards associated with banks in circulation in UK. Mobile technology has now merged with banks which allows the customers to pay with just clicking on their phones. Google Wallet is one of the popular applications where users can store their debit and credit cards. The buses in UK, few years ago, incorporated contactless technology where the fare can be paid with just a tap of the card.

3. Change in customer service

According to some reports, positive customer experiences had fallen in the year 2015. The younger generations are less likely to show loyalty to one specific business or bank. Customers have a lower tendency to believe on the banker’s word. They would rather prefer an online mortgage broker to purchase secondary products. Online banking means that traditional customer services are no longer in need. Customers now need a more personalised experience

4. Increase in competition

One of the biggest changes in financial sector is the ever-increasing competition. It is interesting to see how the financial institutions are becoming more flexible and adaptable to meet the demands of society. Institutions like banks are becoming more customer-centric due to the fierce competition.

The bottom line:

UK is one of the most successful economies currently across the globe. Although technology has brought about positive changes in the sector, the technical failures in the market are alarming. The issues of cyber-security have increased dramatically in recent years. Many financial institutions are vulnerable to online threats are still not able to mitigate the risks efficiently.

Technological advancements will continue to nourish the financial industry until and unless strict checks are put into place otherwise the threats can exploit the consumer market.

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