How has technology impacted the finance industry?
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Technology continues to change and improve many industries rapidly, the finance sector being no exception.
In fact, modern advancements in digital technology have transformed the finance industry, forcing it to optimise its systems to match the modern world.
So just how has technology changed the finance sector? We take a look at three of the key advancements to the industry below.
Automation
Technology can remove much of the redundancy involved with organising financial data. Many processes, such as accounting can be automated through software, making completing these tedious tasks easier and more efficient for everyone involved.
Furthermore, older systems which often rely on spreadsheets and copious amounts of paperwork not only require a huge amount of maintenance, but rely solely on the human element. This inevitably opens the door to errors and mistakes, potentially even leading to a loss of data or important financial information.
Ultimately, introducing automation into the financial services industry means waving goodbye to outdated systems and instead welcoming a simplified process which is not only more reliable, but which frees up employees time to direct their focus elsewhere.
Transactions
Gone are the days of visiting banks to check your balance: now, customers can simply log into banking apps on their mobile devices to view and manage their accounts and transactions.
Not only has technology changed the way we manage and move money, but it also provides additional security. One innovation which has made financial transactions more secure is cryptocurrencies, eliminating the need for physical cash which can be easily lost or stolen. There are still risks with these types of transactions of course, but as technology advances, it’s likely these risks will be minimised further.
On the other hand, AI is also progressing at an incredible rate, leading to advancements in fraud detection. Technology can successfully track a victim’s history and calculate and estimate the possibility of fraud. This process is completed considerably faster than doing it manually which means fraud teams no longer need to be as large.
Managing data digitally
Perhaps the most convenient advancement to the financial industry, technology has made it possible for users to manage, organise and access data much more efficiently than ever before.
Everything from creating and sending invoices, to capturing receipts and gathering signatures, can now be completed with just a few swipes on a screen, the data effortlessly stored and backed-up in the cloud.
Large financial institutions that deal with lots of data especially benefit from these improvements as now, businesses have access to all the information they need at their fingertips, and can manage this data from anywhere in the world.
One such tool which has revolutionised the way data is gathered is e- signature software. This allows documents to be signed almost instantly from anywhere in the world whilst upholding strict security and legal standards.
Benefits of e-signature technology in the financial sector
Enhance security
Traditional wet signatures can be easily lost, modified or even forged. Electronic signatures on the other hand are not only stored safely in the cloud, but contain strict security measures including detailed audit logs, certificates of signature, and encryption technology.
Furthermore, the identity of the signatory is verified to ensure authenticity and can be called upon as proof of signature in a court of law.
Save money (and trees)
Another key benefit of e-signatures in the financial industry is that it eliminates the need for paper documents. This subsequently eradicates paper, printing and postage costs and can help SMEs save up to £33,000 per year!
Time is money and by using e-signatures and digital documents, financial services can help to speed up the processing and management of critical tasks, reducing the time spent on these mundane activities, and freeing up time to focus attention elsewhere.
Additionally, in a world which is becoming ever more environmentally conscious, making the switch from paper to digital documents positions a company in a favourable light and shows a commitment towards preserving our planet.
Find out how many trees, paper and £’s you could save per year.
Improving customer experience
Deals around finance are usually time sensitive and as always when concerning money, clients are happier when things are finalised quickly. By using e-signatures, clients can view, sign and send documents on-the-go via mobile or at home, catering to their schedule and cutting out the need for post runs or office visits.
For more information on how e-Signatures can benefit the financial services industry, check out our dedicated guide.
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