From the past decade, the finance sector has seen a substantial change in many aspects. Mainly advanced technology has made a major impact on Finance industry. First, banking transactions was manual and then online banking made a tremendous change, now “chip and pin” services allows purchasing goods and service with single swipe. But the challenges faced with this industry are all about dealing with the huge amount of data and how technology can help to overcome from it.
As people have greater expectations from the financial sector, banking services have made easier than ever. With the usage of smartphones and tablets, managing the financial transactions has become quite simple from recent years
So let’s have a discussion on what growth finance sector has seen in the last decade and which have changed the way finance sector works in the 21st century?
Data Management Goes “Big”
While financial sectors are dealing with many customers, then they need to keep track of huge data about the customer details, financials and risks. So the data related activities and technologies for maintaining database were under the spotlight. Few decades ago “Data Mining” concept had considered a negative suggestion, but as the capabilities and volume of information expanded this concept has become both opportunity and burden for the Financial Services Companies. Now many government and private sector are in need of professionals to effectively manage and analyze the data escalates.
Financial Sector has Gone Global
Information Technology has made a complete changeover for the financial industry and has introduced some key players. Now any banking transactions can be done globally, the cloud technology making it possible to access information from anywhere and everywhere. From recent years, many new financial hubs have emerged globally, as like any business can be conducted around the world.
Security and Data protection
Few years ago, security in the financial sector had become a major issue and more related to the data management challenges. Now things are different, with the help of cloud technology huge amount of data stored are highly sensitive and it can be easily shared internally. But still, Role of Financial Sector need to be concerned about insider and outsider threats. As hackers have become more furtive and resourceful, financial industry must make sure their security robust to foil their efforts.
Apart from many ATM’s, online banking or internet banking has made a rapid change in the banking industry. Customers can have access to their bank accounts and transactions can be done on their computers. As well as viewing previous statements and transaction history can be searched with a single click.
All these chores eliminate the need for paper statements as well as the cost of stamps for any service.
The Emergence of Smartphone
Yes, smartphones are now the greatest growing platform for banking transactions. It has the ability to do more tasks with the mobile apps. Now your smartphone can be equipped with the banking apps, which is similar to net banking. Nowadays, more Americans are addicted to smartphones than computer, which is causing a spike in mobile apps usage. With a single touch, balances can be checked, which is helpful for online transactions and it also assist you to find nearest ATM or bank.
Essence of Social Media
Social media has revolutionized the customer interaction with the bank and bringing extra transparency to the industry. Today, financial sector actively use social media to communicate with customers about new services, credit card offers and branch closures.
Emerging Impoverished Economy
There were below poverty level and marginalized people with the financial needs in decades ago. In those days many people argued that the below poverty level is the main reason that could drive some people to terrorism or mischievous activities. But with the emergence of microloans, microfinance and other micro services tend to provide people in the impoverished economy with secure finance service. In some way this service improves the financial system and adds value to the global economy system.
This was a comprehensive, yet a fraction of the Overview of Financial Services Industry.