Technology has changed the whole way businesses function and delivers its products and services to customers in many sectors. We have medical equipment which can detect diseases before it attacks us, efficient and smart computer software to make our life easier, etc. And the finance and banking sectors are also untouched by these technologies.
The finance industry has seen rapid growth in the use of technology in recent times. The word ‘Fintech’ has become a common word in the finance sector. Many businesses are making use of this technology to improve their service. There are many areas in which this technology can help us in a better service. We will go through a few of them in this article.
Traditionally lending was something which was getting done in the non-virtual world. People had to visit their nearest city for banking services like withdrawing money, transferring funds, taking loans, etc. They had to visit banks for any financial works. They would spend time waiting there for their turn and getting things done. Without a few visits, it was very hard to do any work.
However, things have changed now. Online lending is becoming more and better day by day. You can apply for a loan from the comfort of your home and get things done quickly.
Using online services, you can choose any type of loans which you want, like personal loan, short term loan, etc. We are living in a time where we can access these types of services through phones, computers, and laptops. This is the kind of technology which is impacting the lending sector and the way they render their services to the consumers.
This is the biggest way that FinTech is impacting. Earlier it was very necessary for any business, including the finance sector, to have a good customer service team. Anything which involves money related matters needed skilled staff to be able to help the customers and sort out their problems.
But with the introduction of robots and chatbots, the experience of customer service has been changed. Many business houses are implementing artificial intelligence and robotics to improve their customer service. They think that if a robot can do the same work more effectively and efficiently, then why to keep a human worker for the same work and pay them.
Early Fraud Detection
Earlier, the investigation and detection of fraud used to be carried out by man and machine both. The system would help to detect potential fraud, but it was the task of staff to investigate all the information and decide whether there was any fraudulent transaction or not.
However, artificial intelligence is growing beyond one’s imagination, and they are now capable of detecting fraud and identify it. The machine can look through the history of potential fraudsters and prevent fraud from taking place. This all can be done at a higher speed than before, which means that it can reduce the size of the fraud team and help in cutting down expenses.
Summary: With the introduction of technology in the financial sector, online lending has become very easy. It helped in reducing the time to borrow money when needed.
Overall, these are just a few ways the technology is disrupting the way finance industry functions. The main concern here is progress and growth. And any growth and progress don’t come without disruption. There are some drawbacks to this disruption in the form of human
It has been known for years that one-day technology will reach a point where it will overtake the human being. And also all the redundant works which are getting done by human touch will now is done by machines. They are very smart, fast, fewer mistakes, and economically viable.
FinTech can be a more efficient and effective way to work. The most important thing here is to manage the balance between machines and the human workforce.