Technology is always advancing, whether it’s pushing the boundaries of how people drive, how they communicate or how they work. It affects every sphere of society, including that of finance. Here are just 3 of the ways that technological advancement has changed and improved the world of finance over the years.
- Accessibility & Convenience
Technology has made financial tools much more accessible to everyone. With the advent of both of online and mobile banking, for example, people can access their accounts from nearly anywhere at almost any time. This has made it easier to do banking, especially for those who are unable to easily go to a physical bank whether because of physical handicaps or living in a more rural area. Of course, this accessibility is also now seen in investing. Investing apps that are intuitive and simple to use are available in abundance and offer the opportunity to invest for those who may have previously felt that investing was over their head or too complicated. To be able to transfer money from account to account with the click of a button is a significant convenience for anyone who moves their money around even a little bit.
With greater technology in finance has come overall cheaper costs, especially for financial institutions. Robotic Process Automation (RPA) has allowed banks to save money by streamlining their behind-the-scenes processes so that their employees can better allocate their energy where it matters most. But technology doesn’t (or won’t) stop there. International banker Julio Herrera Velutini, citing an Accenture survey, writes that “nearly four-fifths of bankers believe that in the next two years AI will stand side-by-side human workers as a trusted advisor, collaborator, and coworker.” Whether or not technology will ever be able to really match a real person-to-person interaction, it will certainly continue to carry more of the burden when utilized by banks and other institutions.
Finally, technology has created the opportunity for more knowledge to be disseminated about all kinds of financial topics. It’s as easy as grabbing your phone or computer and making a quick internet search to start reading and learning about budgeting, debt, insurance, investment, net worth, cryptocurrency, retirement, or any other financial topic of interest. Financial literacy is important, and the more people can learn about finances (and implement what they learn), the more their quality of life can improve. For example, the more financially savvy a person becomes, the more equipped they will be to keep their debt level low (or non-existent), control their spending to save regularly, and invest wisely with a good plan for their savings and investments down the road. Financial literacy is also important because it allows one generation to better set up the next for financial success by teaching and demonstrating good money management.
Technology has greatly improved the efficiency and fruitfulness of so many areas of life, and finance is no exception. Make use of the financial technology available to you to learn more, save more and put some time back in your schedule!