Digitisation Has Helped Transform the Finance Sector Substantially

Ever since its initiation, digital technology has hit hard and disrupted several industries. This transformational wave of technology has finally embraced the financial sector, completely revolutionising its modus operandi. All along with improving efficiency and transparency, there came FinTech, a completely new business proposition in the financial sector. According to Economic Times, FinTech startups have grown manifold between 2015-2018, adding over 1,300 new startups to the base of existing 730 FinTechs. 

Today, customers of financial institutions are becoming increasingly impatient. This is largely attributed to people’s limited attention span. When a customer dislikes a certain service or feature, she will not hesitate to move to another financial services provider. Moreover, conventional bank promotions are becoming ineffective. Namely, customers would rather go for the best available financial product or service as financial institutions adopt technologies that will keep them ahead of the completion.

The Rising Role of Data

Be it the credit score or a customer’s past experiences, every decision in the financial market is influenced by the data provided in the customer’s profile. With digitization facilitating the interconnectivity of various devices in a way is resulting in the emergence of fresh streams of granular, real-time data. Thanks to the technological advancements in the financial world, this data can now be actively tapped and used to support financial decision-making. 

From Physical to Virtual

For ages, banking remained a pretty exhaustive job, now, from transferring money to keeping a track of quarterly investments, one can avail all the finance related services with certain smart clicks on any Internet supporting device. With virtual transactions happening all around the world, withdrawal of physical cash isn’t just the only option left to settle various financial obligations. This not only just decreased customers’ pain but has also relieved the institutions from the constant tension of maintaining cash reserves when the funds were being constantly withdrawn. 

All thanks to the technological advancements for rewarding the businesses, financial players and customers with smart banking apps, which allow users to gain access to a wide range of financial, market information. Some apps are even furnished with the much advanced voice-recognition feature to execute your work with just the vocal instructions you provide. 

Artificial Intelligence (AI) has simplified banking and finance with multiple algorithms. These assessment algorithms help FinTechs to know the complete details of every. On the other hand, reverse predictive analysis throws light on every option and guides the customer in choosing the right product or service. Moreover, all these details can be availed online on websites and mobile apps of FinTech companies.

On the one hand, businesses widening their reach on the global outlook, the industry is witnessing a steep rise in the number of some powerful financial hubs developing up. As the inclusion rate of financial players is rising up, so is increasing the amount of data being shared, the number of IT teams and the overall infrastructure. Now, financial institutions better understand customers and recommend options as per their actual needs and demands.

Finally, Fintech is Fine Enough

The emergence of advanced technologies in the financial world is making a significant impact on the modern business environment. Namely, Fintech has changed the way in which money is being managed. Every financial activity: be it the payments, banking or assets management mode has been duly affected by the emerging technology making the whole arena a more accessible, transparent, and efficient place.  Thanks to Fintech for creating a platform bringing the talent of new players in limelight and reminding the existing ones to keep up with the pace of technology-induced competition by developing new products. 

Fintech has not just benefitted the strong financial industry players but has also created a platform providing equal opportunities to both the growing ones and the newcomers. With its reach across the globe, fintech has brought in the golden opportunity for financial institutions to operate at a much broad and benefitting global level. This idea of financial institutions reaching the world is facilitated by cloud- computing that holds the ability to virtually share information to anywhere around the globe. 

The author is the Founder at PayMe India