How phenomenal has the growth in IT been? It continues to suprise us with it’s flexible implementations in every domain of interest possible.IT has become an essential component for businesses to run smoothly and efficiently.Recent trends have seen growth of IT in the field of finance.
How is Information Technology useful in the field of finance?
Companies use IT for services ranging from financial trading to reporting earnings.Companies prefer to work with those banks and financial institutions that offer services through technology.This makes the services portable and hence more efficient and makes business transactions easier.Another added advantage is provision of security mechanisms for customers performing transactions via these technologies that promotes a sense of accessibility and helps increase customer base.
- Banks can function on a global scale because of technology.Global developments and financial trends couldnt be accounted for without the use of technology.The interent helps banks to keep track of credit transactions around the world and predict trends and identify patterns.Social media provides business with customer information.By creating a place for their products businesses not only acquire customer feedback but also develop a loyalty towards their products.
Lets look at the four services that are set to revolutionize financial services:
- The first change is the invention of bitcoins.It is virtual currency that has been in use to trade over the internet.Bitcoins are being used to provide a faster smoother payment platform for consumers all over the world. Efforts are being made to develop a lighter simpler and more secure payment gateway as opposed to the traditional bank processes.You can refer to my post on bitcoins here.
- The second service is the business API.Efforts are being made to develop business functions as components over the internet aiding in the growth of customers owing to the easier accessibility.
- The third change is the use of open source movement in the context of financial services.Remember how Mozilla developed as a product because of the contribution of many developers all over the world?Similarly efforts are being made to develop financial services as a collaborative effort.
- The fourth change is use of social media to identify customers.
So how can a financial service accomodate the use the technology?
- Provide security and support across various range of devices.
- Enable customers to be connected seamlessly to the central system for availing the services.
- Give customers the flexibility of operating their accounts and make decisions on the accessibility of their accounts.
- Build on open API’s so that a wide range of services can be provided to the customer from various vendors.