As technology continues to develop and we find more applications across all sectors, it is clear that digital technology is becoming increasingly important and influential to all forms of business. One such area that technology is helping to advance is the world of finance.
Multiple technology sectors have sprouted over the last couple of decades, helping to advance the practices of those in their relevant field.
At a rudimentary level, the general public uses services like online and mobile banking, contactless cards, eWallets, and some even dabble in cryptocurrency, but technology is pushing finance even further behind the scenes.
Fintech is taking over
Financial technology, or to use the portmanteau, ‘fintech’, is becoming a huge sector in the world of financial services. Great Britain can currently claim to be a world leader in the ever-developing realm of fintech, with the industry being worth £7 billion to the UK with roughly 60,000 employees and over half of the total investment in European fintech companies being funnelled through the nation last year.
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Fintech companies such as Funding Circle and Monzo have developed technological solutions and improvements to aspects of finance, in this case with peer-to-peer lending and app-based banking, but the sector has been able to grow into the likes of money transfers, trading platforms, wealth-management, and into helping financial services professionals with how they perform tasks.
Fintech now refers to any technological innovation within the financial sector, with the biggest and most discussed in recent years being the rise of cryptocurrency.
Like all other industries, companies and professionals in finance must continue to evolve their methods and practices to offer the best service possible to customers. This used to mean enhancing rates or improving customer service, but now it greatly relies on improving one’s technological offering to customers to enhance the ease, convenience, and reliability of the service or improving in-house technology to make the work done by employees faster and more reliable.
Fintech continues to better all financial services
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One of the main ways in which fintech is helping to evolve the financial sector is by improving services that have been considered lacking in the past.
One of the most distinctive applications of fintech involves the various types of robot used to improve the formerly underwhelming high-frequency trading industry. Now, through the use of smart fintech, which enables news-based trading and text-reading algorithms, the sector has greatly improved on its past offerings.
While high-frequency trading has long-relied on technology but has finally made a breakthrough with advanced fintech, the area of accounting may soon be getting an influx of fintech to improve the service as well.
Many members of the Association of Chartered Certified Accountants foresees artificial intelligence as becoming a reality as a part of accounting over the next few years. It has been stated that artificial intelligence and machine learning should be able to add more value to the work of accountants by generating insights, detecting fraud, understanding taxation complexities, and performing a risk assessment.
Fintech will continue to improve and invent new ways in which people of the financial sector go about their business and create an offering for customers. The companies that pull ahead will be those who embrace these advancements.