Over the past decade or so, a new sector has risen: FinTech. Also known as financial technology, this new sector has completely revolutionized how people view finance and how it is done on a day to day basis. In today’s article, I’m going to be diving into how technology has and is changing the finance industry and how this effects everyday individuals.
If you have done any finance related activity whatsoever, you know that the presence of trusted customer service is really important. Back in the day, all financial business was done at the bank through customer representatives. Now, there are automated chatbots that can help you with your finance related problem or topic. This is really big because many banks and other financial institutions don’t have to pay labor costs for a customer service rep when they can just apply a chatbot on their website. Also, AI gets smarter and progresses the more it does an action. In the end, I see many chatbots in the near future becoming implemented into financial firms. They’re just more practical and can get to the root of a problem faster. This allows human capital and labor to be utilized elsewhere in the company where it is more valuable.
2. Online Banking
As there is shrinking demand for customer service reps, there is also a shrinking demand for bank tellers. Online banking has completely revolutionized what we do with our checks and cash. A few months ago, my manager told me that he could simply take a picture of his check and it would withdraw right into his bank account! How cool is that? I was unaware of how powerful online banking had become. Others financial transacting apps like PayPal and Venmo have made it easy to transfer money into and out of your account. They have also made it very easy to pay people and receive money as well. I just find it so cool that you don’t have to go to the physical location of a bank anymore and practically any financial transaction can happen at any time from online loan applications to managing your investments, anywhere just by using your smartphone. Like I said in the previous point, it is just more practical. In today’s day and age, it is so easy to link other things like credit cards, brokerages, and many other things to your bank account. In the end, everything is becoming linked when it comes to online banking, making a smooth and easy transition for the consumer. It doesn’t take that long to learn everything and is way more time efficient.
3. Fraud detection
Going back to AI, it is able to spot fraudulent activity in your accounts. Long gone are the days of a human looking through all of your financial information to try and spot fraudulent activity. Also, it is very easy to look at your online statement, whether that be your credit card or debit card, and see if anything looks suspicious or out of the ordinary. AI allows you to get notifications on your phone if any fraudulent activity is discovered. In the end, the sooner you find out there is something wrong with your finances, the better off you will be.