Impact of Technology in Financial Services

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1st of 3 Articles 

Fintech solutions are revolutionizing the financial services industry. Industry stakeholders are witnessing their traditional business models turned upside down, whether it be in the commercial banking sector, electronic securities trading, equity funds, or insurance.

In this highly competitive market, adapting to these new changes and participating in its evolution are essential.

Technology and commercial banking services

The increasingly fast pace of today’s business world means business needs are constantly changing, and traditional banking model are struggling to keep up.

Business leaders want fast and intuitive services and are prepared to leave the comfort of traditional institutions so they can access the kinds of services that best suits their needs. In order to remain competitive, banks must respond to customer’s changing needs. In order to improve customer experience and to expand service offerings, the solution are to leverage the latest information technology.

A growing financial need for entrepreneurs is accelerated payments. They want immediate confirmation that funds are deposited and available. The faster the payment is received; the faster the funds can be reinvested.

The use of artificial intelligence can eliminate some manual processes. AI analyzes data to enable better decision-making and more efficient corporate financial management.

Virtual, augmented and mixed reality technologies are slowly making their appearance in the banking sector. Solutions that include extended reality could, among other things, contribute to bridging the gap between financial institution employees of and their clients to enable an immersive and improved experience.

Technology and Electronic Trading

Today, in the world of electronic securities trading, it is the speed of transactions that largely separates profits from losses. This is where electronic trading and high-frequency trading (HFT) comes into play. High-Frequency trading is based on mathematical algorithms to execute transactions a thousand times faster than traditional methods.

This speed makes it possible to reduce their tick-to-trade —the time between the signal indicating a movement on the market and the decision to buy or sell. This is a very important step in providing a global view of system performance and ways of improving infrastructure.

Advances in technology make High-frequency trading more and more accessible by offering powerful and ultra-fast products that reduce latency. Electronic trading firms take advantage of financial technologies innovation to reduce their operating costs, reduce the risk of error, and increase their efficiency and productivity.

Technology and Equity Funds

Thanks to new technologies, financial products are becoming increasingly sophisticated. They are more and more personalized and adapted individual client needs and associated investor profile.

For example, the creation of equity funds attracted a new clientele and democratized access to the stock market. For the general public, these funds represent an easy, economical, safe, and diversified way to invest.

Technology has opened the door to new ways to trade on the stock market and manage one’s own funds. Among other things, it allows the client to view returns on investment in real time, perform secure payment transactions, or reach a consultant from anywhere and without providing open access to their financial portfolio.

US Mutual funds ownership

Technology and Insurance

Technology has benefited the insurance industry in recent decades, and particularly in the area data management.

As the years go by, technology and insurance more intertwined. It is now common to apply for insurance online and to receive a quote quickly, knowing that our information is protected. Subsequently, it is easy to make minor changes to your coverage through a self-service online portal. In case of property insurance, a claim can be submitted at any time automatically triggering the appraisal process.

Financial technologies also enable insurers to prepare contracts specifically tailored to individual needs thanks to customer data analytics.

Conclusion

In a highly competitive and rapidly evolving field such as financial services  <https://ciaratech.com/industries/enterprise/financial-services/>, new technologies are essential. The First of a series of three blogs which will further delve into these interesting subject matter.

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financial services technology commercial banking equity funds insurance

Odyze Wright

Odyze Wright

I write about what's interesting and what's not. I write about current and what's not. Lastly, your suggestions are more than welcomed!

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