3 ways how technology is shaping the finance industry

Advancements in technology are helping to shape the future of the finance industry. Despite heavy regulation, compliance laws and increasing security threats, the move towards a digital landscape has changed the way the industry looked just a few years ago.Rapidly advancing technologies, evolving customer expectations and a changing regulatory landscape are opening doors to disruptive innovation in financial services. From crypto-currencies to big data to peer-to-peer lending, technological innovations have captured the attention and imagination of customers, investors and incumbents in the finance sector. However, the nature and extent of the impact that these innovations will have on the financial services industry remains unclear. Here are 3 ways how the finance and accounting sector is being impacted by technology:-

  • Automated digital strategy: Automation technology has been rapidly onboarded by the financial sector. In fact, finance is leading the way when it comes to the fast adoption of software to complete repetitive tasks. A focus on an automated digital strategy means that there will be less humans needed to do tasks that can be automated. As a result, many jobs have been cut already. An example of this is ING, a Dutch bank, which reduced its workforce in its back offices, call centres and IT departments, as it reduced the number of IT systems it takes to run its business.More roles are starting to emerge as the industry is evolving: accountants are already diving into more interpersonal relationships with clients and there are a number of other tech jobs the future depends on, such as data scientists, cloud architects and platform developers.
  • Cloud technology: Cloud technology will transform the finance sector in years to come. This comes as no surprise as it’s shaping the way a multitude of industries do business. Infrastructure flexibility, reduced total cost of ownership, and shortened time to market are just some of the top reasons the finance industry is moving to the cloud.Advancements in cloud computing in finance will continue to be driven by compliance and security requirements. The decision to work on a public or private cloud will be a large challenge for financial institutions worldwide.
  • Fintech services: Fintech is a term that describes a whole range of emerging financial services that have been enabled by advancements in technology. Innovative entrepreneurs are disrupting the sector and are making it easier to reduce fraud, conduct trades, make payments, increase security and adhere to regulation. They’re more agile than old-school financial institutions and new players are constantly entering the market to challenge existing industry norms. Established financial institutions will need to adapt to meet the new standards set by these start-ups.