How Finance Industry Has Changed Over the Years?

Introduction

There is a huge change in the financial industry in the last couple of years. With digital transformation, the finance industry has transformed. You can say that the digital payment system is not less than a revolution in the finance industry. Many banks and financial institutions are going through a tough time because they have never expected such things very soon.

Moreover, it is expected that the industry will get disrupted within the next five years. Because there is a lot of discussions going on digital currencies. Many experts say that digital currencies may disrupt 25% of traditional currencies. Anyway, let us discuss in detail how the finance industry has changed over the years.

Changes in Financial Services

Financial industries need to adopt the digital trends to stay in the economy otherwise they have to shut down their operation. Here are some of the changes in financial services in the last few years.

Mobile Banking is Dominating

Do you remember when was the last time you have visited a bank? With the digital banking system, people don’t want to visit a bank. Because a simple mobile application can perform most of the tasks from sending money, to receiving money, paying salaries, paying the bills, etc. More importantly, you can get 24/7-hour services with mobile banking. You don’t have to stand in a queue for simple fund transfer or other banking services. This is a huge change in the way the banking system was previously working.

Digital Payment of Bills

Another major change is the digital payment system. You can pay your bills from your mobile phone through a simple payment app. You can pay your mobile bills, electricity bills, shopping bills, and even simple bills in a shop. You can pay them on your mobile phone. You don’t have to carry cash while going for dinner to a restaurant or shopping for anything.

Digital Currencies

With the advent of digital currencies, the whole financial market is in panic. Many people anticipate that digital currency can replace the present currency system in a few years. But that is not possible anytime soon.

In fact, it will have an impact on other currencies but it can’t replace them. Some of the popular digital currencies are bitcoin, ether, ripple, BNC coin, etc., bitcoin is the most valuable and popular among the cryptocurrencies. These currencies operate through a decentralized network run by blockchain technology. Profit secret can help you to learn more about them.

However, there are many controversies related to digital currencies due to fraud and money laundering cases in the past. But the blockchain technology has a significant application in the financial industry. It provides secure, faster, and faster transactions at a very low cost.

Digital Fund Manager

Using a simple computer program, you can build your financial portfolio. There are also some mobile applications that can help you in budgeting, investing, paying bills, etc. These digital fund managers are driven by complex programs that helps you plan your personal finance. If you are running a business then technology can also help you to manage your corporate finance.

Big Data and Machine Learning can Improve Banking Operation

Big data is now playing an important role in many industries. Big data combined with ML can make banking operations faster, cheaper, and effective. So, banks and financial institutions must take this into consideration for sustaining in the market.

Conclusion

The financial industry has truly changed a lot over the few years. If you are in the finance industry then you have to understand how it has changed and what will be its future. As mentioned above technology and digital transformation has a great impact on the financial sector. So, adopting digital trends and the latest technologies are essential for financial institutions to survive in the market. Hopefully, the above information has added some insight.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes