It would be safe to say that technology affects everything we do; yet, when it comes to the world of finance, the transformation that the present-day innovation is introducing is simply staggering. Not only is technology changing the way in which businesses are running their own finances but also the way in which individuals are handling their private funds. So, here’s how technology is impacting the financial landscape.
Better customer service
The first major advancement that present-day technology is introducing into the world of finances is much better customer service. Did you know that it’s seven times more expensive to acquire a new customer than to retain an existing one? Another estimate claims that U.S. businesses lose as much as $83 billion annually due to poor customer service. Out of this, $32,4 billion are lost to the entire industry, whereas $50.6 billion are lost to competition. In other words, the improvement to customer service makes the business world as a whole a lot stronger and more resilient.
In the past, paying in cash was standard in many industries, especially in retail, yet, nowadays things are a lot different than they were in the past. According to one survey, as much as 50 percent of people believe that the majority of payments by 2030 will be completely paperless. This is possible due to the advanced payment verification method enabled by present-day biometrics. The reason why this is so important is that online shopping (especially social media shopping) is experiencing a stellar rise.
One of the issues that people want to know the most about is the peculiar nature of the blockchain technology and the way in which it can change the financial landscape. First of all, it’s important to understand that one of the biggest differences that cryptocurrencies managed to create is the concept of digital property. This is due to the fact that they’ve created an uncopyable digital code, which means that it is now possible to own something in the digital world, something that only you possess and that can’t be copied. The blockchain is merely the most reliable method for protection of this digital code. In the world of finance, it helps eliminate the middleman, due to the fact that technology provides the guarantee for the transaction.
Better fundraising options
Perhaps the thing that makes the biggest difference to entrepreneurs all over the world is for the plethora of better fundraising. First of all, thanks to the existence of low-rate online loans, it’s much easier to do the research on the topic and get an affordable loan a lot quicker. Other than this, there are also options like crowdfunding and peer-to-peer lending to consider. Just the fact that you have so many options available to you is something that can make a world of difference in your entrepreneurial efforts.
A platform for everything
Previously, we’ve mentioned platforms for peer-to-peer lending and a platform for online loans, however, nowadays there’s a platform for virtually everything. Just think about it, if you decide to invest in wine, you can find local winery online or even find a platform that helps you do a comparison of vintages and brands. This is just one example, seeing as how these principles apply to virtually every single field and form of investment. An investment strategy that’s based on these tools is a lot more reliable.
More reliable financial analysis
There are several purposes to a reliable financial analysis. First of all, it determines the health and stability of an enterprise. Second, it helps determine the liquidity of funds and the efficiency of the product to get transformed into revenue. These several factors alone are more than enough to make a massive advancement in the field of finance. Lastly, by providing all of this, strategic and financial decisions are more reliable and more fact-based. All of this can be done through adequate financial tools and there are both premium and open-source tools out there for you to consider. For an individual user, even a simple budgeting app can make a difference.
Faster fraud detection
In the past, it was a lot easier for financial fraud to go undetected. Why? Well, first of all, when all the money is in the digital format, it’s a lot easier to notice that some of it is missing. In the past, if there was such suspicion, a lot of time and effort were required to check if this is really the case. Moreover, due to the fact that a lot of these processes are quite arduous, the probability of human error, due to a loss of focus, is quite high. With technology, this can be significantly improved.
In the end, it’s more than clear that progress leaves no stone unturned and that it shows promise to completely change the world of finance as we know it. Fortunately, this change is taking place gradually, which leaves everyone with enough time to adapt. As for the motivation for this adjustment, the sheer pragmatism should be able to do the trick.