It doesn’t seem like all that long ago that the majority of our financial services were mainly accessible in person. You had to visit your local bank branch or financial service business to access help, and it was a time-consuming process for all involved.
In recent years, there has been a significant shift in how we access the financial services we require. The majority of finance-related processes are being carried out online, allowing businesses, customers, and employees to benefit in a range of ways. You may know that the entire financial industry has been transformed, but you may be surprised to learn that digitalization is impacting financial services in some of the following ways.
Accepting Loan Applications Online
Whenever you needed to borrow small or large sums of money to purchase a house, car, or something else, you often needed to set time aside in your day to visit a loan provider.
Now, we have programs, software, and technology like MeridianLink API to move the entire process online. Most credit unions run such applications to streamline the whole application process for both businesses and potential customers.
Using benchmarks, algorithms, and customer information, decisions about lending can be made online in just minutes rather than with human intervention in person.
Greater Consumer Trust
New technology can be daunting, and not all consumers have been quick to adjust to online banking and other financial and technological advancements. However, consumer trust is growing with more and more services going online.
It has also been accelerated due to the COVID-19 pandemic. As technology has enabled us to access financial services without visiting a physical business location, the average person has become more trusting as they slowly learn just how many exciting and innovative features they have been able to take advantage of in the online space.
Now, traditional financial institutions are worried. At least 88% are concerned about losing revenue to fintech companies.
Innovative Auditing Strategies
Audits are an integral part of confirming a business or company’s transparency. Companies are not always managed by their owners, so the owners can hire professionals to vet fiscal information and ensure all financial statements within a business are a fair and accurate representation of the business’s actual position.
This was traditionally a long and arduous process, but digitization has transformed it for the benefit of the auditor and company being audited. Technology is now an integral part of the auditing strategy, providing them with better access to company data and an improved means of investigating that data. The result can generally be a high-quality audit that delivers excellent value to stakeholders for peace of mind in their financial position.
Improved Customer Relationships
Artificial intelligence (AI) used to be something we feared when watching it take over in science fiction and horror films. Now, it’s a helpful and practical technology we can integrate into most industries and businesses, and something that we even reward companies for having.
AI regarding customer relationships has been a game-changer in many companies. A combination of machine learning and AI has allowed us to gather as much data as possible about our customers to understand them and provide a better service. We can also make decisions based on real-time data and provide hyper-personal and relevant services for customers.
AI has even enabled us to create chatbots that work alongside humans and make business practices more efficient. Chatbots have allowed customers to take care of minor issues by themselves, rather than relying on human staff members to step in and solve them. With this technology, businesses may notice increased productivity levels and efficiencies that may not have been possible before.
The cloud has been a primary driver in cost reductions, efficiency, flexibility, and scalability. Rather than spend tens of thousands of dollars housing bulky servers and being limited in data security and accessibility, businesses can now utilize this innovative technology and transform their business models in the process.
Many financial institutions have taken advantage of the cloud’s benefits and have undergone the great data migration. While there may be some risks associated with the cloud, the money savings have been enough to lure in millions of businesses in their droves.
Clients can choose the level of service they need, get rid of traditional hardware, and enjoy on-demand service. It has truly had a dramatic impact on financial services and many other industries.
As the years have passed, technology has become more advanced, and businesses have been transformed. While you may be aware of the role it plays in your everyday life, you may not have realized just how many companies have been able to streamline their services for the benefit of their bottom line and their customers’ experiences.