Technology has come a long way since the early parts of the 20th century. Today it can be used to detect illnesses in a person, predict a mishap that may occur related to natural disaster and make things simpler in every sector there is. With this advancement, the banking sector has had a lot of changes implemented into it. The inclusion of technology is bringing a major change in the way the banking and financial sector operate. The concept of financial technology has taken the world by a storm in the growing corporate world. There are multiple areas where he incorporation of technology will develop the entire sector and make things simpler for the customers as well.
The Customer Benefit bringing in Profit
The customers and banks are reliant on each other for services and this makes it absolutely imperative that the customers are well taken care of. In the past, money matters required skilled people to handle them and assist everyone in sorting out any issues that crop up in the transaction process.
But, the involvement of technology has made things simpler with the use of chatbots. These are used to give automated responses to any of the customers’ queries. These save the time of the bank employees as well as the customers. This gives bankers the opportunity to utilize that time to develop newer and better facilities creating a win win situation for them both. Apart from this, the introduction of the ATM made transactions easier for everyone. Nowadays it doesn’t require people to go all the way to the main branch of the bank to withdraw the amount required. The facility to instantly extract money using an ATM that is now available in every corner of a city has made things convenient for the common man. Even depositing money is not a major task, as there is also a machine for the same as well. People can also keep a track of their finances using the ATM’s facility to check their account statement thus helping in savings with only the push of a button.
Creating a Defense against Fraudulent Activity
Online transactions though convenient can also come with their fair share of disadvantages. But the same technology is what helps detect any deceitful transactions. If such an instance occurs man does need to put in some effort but due to the records present in the system, it’s easier to keep a track. Investigations become easier and due to the use of new technologies such as AI, the fraud can be detected and solved in a shorter time span.
This also helps save plenty in terms of resources that would be used if it was just human resource being used. It also saves large amounts from going missing entirely as there is always a trail left behind in the case of an online transaction.
Implementing a Cashless Mode of Payment
Technology has always given ways to make things simpler and its the same case with payments as well. All through the century people have relied on the cash payment mode but the smartphone has changed things drastically. One using a variety of mobile applications can send or receive payments instantly. This doesn’t require the use of a credit of debit card. Be it a restaurant or a grocery store, any amount of any quantity can now be transferred directly into the other person’s bank account. The concept of an online wallet has also made it easier to store amounts in virtual wallets that can be of use in emergency situations.
Accurate Authentication and Prediction Techniques
The concept of transferring money online though simple also allows only the account holder to have access to it. The use of fingerprints and passwords has ensured that the account is mostly safe from any sort of hacks. There are also various firewalls around the account to ensure its safety. In more recent developments, palm vein authentication has made the accounts safer as each person’s difference in body structure due to a complicated vascular structure brings a difference in the vein and this is then stored in the database.
The accounts data can also be used to create an appropriate credit card plan for people as it will be based on the individuals’ budget and their spending capacity. This can stop people from taking up plans that may not suit their lifestyle.
The Art of Insurance with Technology
The field of insurance is a very necessary and crucial one as every person requires different kinds of insurance to protect and get them through any critical situation. The various insurances such as health, car and home are available to secure one’s finances. The inclusion of new technology such as IoT and Artificial Intelligence in finance gives insurance makers an idea of the suitable plans for a family. It used to such an extent that, some insurers are fitting cars bought by their clients with smart devices to check the driving abilities of the person and analyze the risk percentage. This helps them decide the ideal price to mention to the clients.
Banks today are moving away from age old methods and working in collaboration with technology to facilitate an ever growing need for speed in every sector of finance and banking. It is essential in order to meet the expectations of this constantly changing world. This vision of the future has so far proved to be beneficial by putting the customer or client in the center of the priority list.
Leverage of Technology in Banking and FinTech
