The Impact of Fintech on Financial Services
As the presence of fintech in various industries keeps growing, its impact on some industries is getting harder to ignore. Financial services in particular have benefited a lot from the integration of various modern financial technologies in their work, and we’re likely only seeing the tip of the iceberg, with more coming up not too far on the horizon.
Faster Processing of Complex Transactions
It’s easier than ever to process complex financial transactionsat the blink of an eye and settle all accounts correctly down to the last cent. This used to be a nightmare for many accountants and other specialists in the financial services sector, but it’s now a pretty straightforward ordeal that takes very little effort to set up and get running.
This is a more important change than some may realize, as it will free up financial institutions and others involved in the financial services sector to utilize more of their resources for other purposes. This can increase the overall quality level in the sector, leading to more people finding themselves inclined to participate.
Better Financial Inclusion
Which leads us to an important point – financial inclusion for various kinds of services and accounts is on the rise, and we’re only going to see this situation getting better in the future. It’s hard to predict exactly how much the market will be affected, but it’s probably safe to assume that a large number of services that are currently operating on cash exclusively (or almost exclusively) are going to have to adapt to the changing situation in order to survive. This can only benefit the customers of those organizations, and in fact, we’re already seeing strong benefits across the board.
Developing a better sense of trust in these relationships is important, and financial technology can contribute to that quite a lot. Looking at the current trends, things are only going to get better in the near future if we keep moving in the same direction.
Lower Error Rate in Accounting
Fintech is already present in a large capacity in payroll services, which has led to a reduced error rate when processing salaries and expenses, in turn making the company more productive and efficient in the long run. This can also lead to increased employee satisfaction, and an overall better attitude among workers. It should go without saying that the benefits to employee productivity can be huge as a consequence of this, and some companies are already measuring large leaps forward in this regard thanks to their rapid adoption of financial technology.
We’re still exploring what fintech can do for our modern society and how we can best integrate this type of technology into what we’re doing on a daily basis. One thing is clear though – adopting this technology can provide a company with a huge productivity boost with relatively little effort, and it’s the way of the future. Early adoption makes a lot of sense here when one considers how widespread this technology will be not too far from now, and how much its pioneers are going to benefit.
Published: 23 August 2018
Author: Amy Matthews
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