There are very few areas of our lives which tech has not had a profound impact upon and in the main, technology and its advancements have completely radicalized the way in which we live our lives. As with any advancements in technology, there is a great deal of fear over what is to come and whilst technology does most certainly improve our lives, there is always a certain trepidation that comes with it.
This fear is something that is currently gripping the finance industry as more technology is introduced with the aim of making things easier for both customers and businesses within the financial landscape. Despite the preoccupations of some at the financial market technology news which regularly announces new ideas and advancements, the majority of invested people are embracing the change and here are just some of the examples of how tech is very much taking over the finance sector.
One of the hottest topics in the financial technology industry is the incredible success of digital payment services. A prime example of the rise digital payments can be found when you look at the e-commerce giants Alibaba whose digital payments section, Ant Financial, have more than 500 million customers, almost 10 times the amount of customers of any other bank on the planet. Not only would banks kill to have this level of custom, they would also love to have the amount of data that comes with it but traditional financial institutions have no way of ever competing with the digital platform unless they embrace it.
Digital or cryptocurrency such as Bitcoin look set to completely change the way that we think about money altogether and this has created a cross roads for many banks and financial organizations. Digital currency was once dismissed by industry experts as short lived fad but banks are now beginning to realize that they must invest if they want to survive. Recent research suggest that 8 of the 10 major banks will be looking to blockchain technology, the data system which Bitcoin relies upon, to help them to save millions in the coming years.
Prediction and Data
Owing to the sheer power of the technology which is available to the finance industry, it has never been easier to predict outcomes and data check decisions. This will no doubt have a profound effect on the stock markets, the way in which banks invest and the way in which they give credit.
As with many advancements in technology, the arrival of automated systems and high powered computers to do our bidding, will cause job losses throughout the financial sector and this is something which has already begun. Over the course of the next decade, it is estimated that around 1.7 million jobs will be lost in the industry as technology takes the place of humans. With this being said, it will be highly interesting how well the banks and financial organizations adapt to a world which offers the very best technology, but at the same time attempts to offer excellent customer service.
Technology will continue to revolutionize banking and in 20 years time it is likely that the sector will be unrecognizable compared to what we have at the moment, the question is, will the big players be able to keep up?