HAVE you noticed the swift changes in different sectors of society? May it be e-commerce or even how we converse with people every day.
Today, if you want to buy new clothes, you can just move your fingers and have the order delivered at your doorstep. Before this, a lot of people used to buy stuff at brick and mortar stores.
This is similar to financial services. Many years ago, people usually go to a physical branch of a financial services company to save, withdraw, invest or conduct other financial transactions.
As we continuously adapt to the fast-changing world of business, I would like to share the different aspects of financial services now helping us do things in a faster and more efficient way.
1. Automation. Data entry, calculations and reporting are now automated, which gives people more time to do technical analysis in business and even in personal finance. Data on several pages of documents can be now placed in an online application (app) and interpreted in an instant. You just need to populate the basic information and the information that you need are now displayed in a summarized manner.
2. Online banking and payment systems. The Internet and mobile technology have led to the widespread adoption of online banking and payment systems. Customers can access their accounts, transfer funds, pay bills and make purchases using smartphones and computers.
3. Customer experience. Technology has revolutionized the customer experience in finance. Chatbots, virtual assistants and mobile apps provide customers with convenient ways to access financial services and get assistance around the clock. Personalization based on user behavior and preferences enhances customer engagement.
4. Borderless transactions. If you want to buy or conduct transactions, you can do it online in different parts of the world. Let’s say you want to buy from Amazon, while you are here in the Philippines, you can buy the brand you like, at the time you want while doing other important tasks.
5. Cybersecurity. As financial transactions increasingly move online, the importance of cybersecurity cannot be overstated. Financial institutions invest heavily in technology to protect customer data and safeguard against cyber threats.
6. International investing. Because of technology, we can now access investment platforms in different parts of the globe. You can now use a platform to invest in the western side of the globe instead of just investing in local markets. Before, we used to call traditional stock brokers to buy stocks, but now we can do it on our own as long as we are skilled to do trading.
7. Budgeting. If you want to monitor you daily expenses, you can now record it through an app in your mobile phone. Instead of writing in paper, which is still good, through a mobile app, you can list down and monitor not only your monthly but even bigger scale of expenses.
8. Risk management solutions. Utilize risk management software and analytics to assess and mitigate financial risks, including credit risk, market risk and operational risk.
9. Implement data analytics and business intelligence. Utilize data analytics and business intelligence tools to gain insights from financial data. This helps with trend analysis, forecasting and identifying areas for cost optimization.
10. Real estate finance. Real estate finance involves financing and investment decisions related to properties. Topics include real estate valuation, mortgage financing, real estate investment trusts and property development. You can pay your properties now through online channels. After inquiring from a broker online, you now see the property initially online giving you more time to evaluate which property suits you.
Technology allows us to be more productive. At the same time, we need to be cautious as well on how this can be integrated in our daily lives. The points that I shared are just some of the positive effects of technology in finance and in our lives.
Let us all together help one another in making the world a better place. Global finance considers the interconnectedness of financial markets and economies worldwide. It looks at international trade, currency exchange rates, cross-border investments and geopolitical factors influencing finance.
Karlo Biglang-awa is a registered financial planner of RFP Philippines. To learn more about personal-financial planning, attend the 104th RFP program this November 2023. To inquire, e-mail email@example.com or text at 0917-6248110.