How Technology Is Revolutionizing the Financial Services Industry

How Technology Is Revolutionizing the Financial Services Industry

The Global Banking Industry will spend $519 billion in IT by the end of 2018, up from $499 billion spent in the previous year, according to research done by Deloitte. This has attracted various firms to invest in banks and other FinTech firms. Thanks to FinTech, you can now easily do online shopping, stock investments, and foreign currency exchange or money transfers at your fingertips. This has revolutionized how we manage our finances every day.  

Improved Customer Service

Over the years, technology has been changing the financial services landscape. In the past, managing your funds meant having to constantly engage with your local bank or speak to a professional who was in charge of your investments or savings. With the growth of technology, financial institutions have combined the traditional methods of money management with modern technology to ensure that customers enjoy more streamlined financial services.

Perhaps the most innovative way FinTech has had an impact in the industry is in improved customer service. Some banks have developed video teller devices where customers interact face to face with their teller. Also, through social media and customer data, banks have enhanced their marketing efforts and even geographically targeted customers with specific offers. One exciting innovation is the use of chatbots. For instance, Erica, The Bank of America Chatbot, can even provide investment advice to the customer. As a result, they not only improve customer care services but also reduce costs by freeing up agents in call centers.

The Ease of Online Services

Not long ago, people would have traveled all the way to their bank in order to do simple tasks such as withdrawing money, transferring money from one bank to another or solve their issues. Today, mobile banking applications have made it easier for customers to make payments, transfer funds and even verify their credentials through biometrics using their smartphones. Online banking has made it easier for employers to pay their workers at the click or touch of a button. This innovation has significantly revolutionized the banking industry and its consumers.

Detecting Financial Fraud

With the emergence of new technology in the financial sector, investigating and identifying fraud activities such as money laundering has been improved. Systems have been developed to track any potential fraudulent activities by monitoring the transaction history and then calculating the possibility of fraud based on previous patterns. This process takes less time compared to human investigators. As a result, banks have been able to save millions of dollars and prevent loss of data, maintaining customer confidence while preventing any negative brand reputation.

Through improvement on customer services, online banking and improved fraud detection, financial firms have been racking up billions of dollars in profits, and in turn, offering better money management services for customers. FinTech innovations have made personal finance management much easier, faster and more convenient. As technology continues to change, banks and customers have to be flexible and adapt to those changes.