Effects Of Technology In Finance And Banking Industry


Technology is everywhere and in every industry. It has impacted businesses and companies way of operation. It even made it possible for consumers to seek financial help online through websites like www.plenty.com.au which eliminates the need to hire an actual financial advisor. The financial industry cannot deny the fact that technology has impacted it in a major way through the introduction of FinTech or financial technologies. This buzzword is currently taking the sector by storm.

PwC recently released a report indicating that 77 per cent of financial establishments will try means to develop internal efforts in order for their operation to reach a point of innovation. One clear proof is that businesses are allowing FinTech to disrupt the industry. There are different areas in financial industry that has seen the effects of technology and some of the priorities include:

  • Customer service. This is the area where FinTech has changed the most. Decades ago, a team of trained employees are required to handle the customer service department of a company but it is no longer applicable today. With the introduction of chatbots, companies are now able to provide customer service to consumers with the help of AI. While it may not have the same touch as humans, AI is already getting smarter and cost is cheaper compared to paying a team of staff members.
  • Online banking. We used to go to banks in order to process transactions but today we can do many transactions online. Banks no longer have to employ as many people because a big chunk of consumers have been used to online banking. While there are still many people that visit their bank, it is a portion of the number decades ago when online banking was just a thing of the future.
  • Fraud detection. Fraudulent transactions can now be easily monitored with the help of technology. With the combined efforts of man and technology, cases of frauds are significantly less than before. Artificial intelligence and machine learning make it possible to detect fraudulent transactions and identify them again in the future. This is why consumers are confident to use sites such as plenty.com.au because of the added online security developed in the past few years.