The Impact of Technology on the Finance and Banking Sector
With the introduction of the new technology in the finance sector, the banks and other financial institutions are now smiling since their innovation teams can manage to take their innovative activities a notch higher. This is because in the past when the technology in these financial institutions was obsolete, the processes took a lot of time to be completed. However, the new technology has brought a new revolution to the industry, and the stakeholders have nothing less than joy. One of the impacts of technological advancements is the invention of online platforms where the bankers, creditors and other financial lenders can interact so that they can transact business. The introduction of the digital platforms was informed by the challenges that the clients of the loan services were undergoing whenever they required the services of the creditors.
One challenge that was prevalent during the era of the obsolete technology was the time taken to process transactions for the customers. The customers would spend weeks waiting for their loan applications to be approved by the financial institutions. This process was made more tedious by the requirements that the creditors demanded from the customers before they approved their loan applications. They were required to fill in their details, which comprised of the personal details and those of their next of kin. This was quite detrimental to some of the customers, and hence they opted to stay away from the borrowing.
The digital platform eradicated all the bureaucratic processes and allowed the customers to access the loans of their choices from the financial institutions without having to commute to their grounds of operation. All they were required to do was to log into the platforms through the internet, fill in their loan application details and submit to the financial lenders. After the assessment of their eligibility by the lender, the loan amount would then be disbursed to their bank accounts for their consumption. This was a very significant milestone for both the financial institution and their customers.
When it came to the withdrawal of the withdrawal of the saved amounts from the bank accounts, the clients had to move to the banks to access the withdrawal services. The bank accounts were also limited to the in such a way that the clients would only operate fixed deposits accounts only. The new technology changed this because when it was introduced into the banking sector, the banks allowed the clients to possess a checking account cypress tx which they could use to access their savings whenever they needed money to spend.
As if it was not enough, the banks also introduced the use of credit cards, which could be used by their customers to purchase items whenever they required, and the money was deducted directly from their checking accounts. As a result, the customers were delighted because they didn’t have to worry about carrying large amounts of money in their pockets whenever they went shopping. Recently, the banks have made another progress of introducing an online platform where the clients can access their savings and also make payments using their mobile phones. Thanks to technology.