The staggering pace at which technology is evolving was always going to bring advances to the financial industry. We are just getting used to the idea that the days of pen and paper are long gone when it comes to the finance sector. But simply removing older forms of technology it seems does not stop at databases and reporting. Now, we are moving into an age of paperless money, instant transactions and global access to markets and services from the comfort of our own phone!
Let us give you a quick rundown on what FinTech is, where it’s used and how it could enhance your finance and banking operations.
What is FinTech
FinTech … or, Financial Technologies, is simply the act of applying new technologies to the finance industry. Which in fact has been happening for many years, it is just now we have decided to put a name to it. So, there it is! You can now update your ‘stock exchange App’ and you have taken part in FinTech!
How Does FinTech Help Us?
Technology has to have a benefit or it is just a pointless move. So how does FinTech move the needle for the finance and banking sector? Let us look at some of the benefits!
Shareholders getting instant reporting, traders being able to see stock movements in an instant and those common folk being able to see their bank balance on demand from their phone are just a few of the ways in which FinTech has enabled us – in this faster moving world, to be instantly in touch with our financial status.
So how does speed help if we are all still working at the same new, latest speed? Well with faster more accurate real-time information, we can make better decisions about what our next best actions are. Waiting for overnight updates on prices and systems simply means wasted clockwatching time when we could be more productive.
Which brings us to the next point
Recently the Financial Times reported that Labor costs were rising compared to productivity output, a new phenomenon it seems, seeing as since the 1980s productivity was always outstripping labor costs. But, as real-time information … and access to it improves, workers in the finance sector can become more productive, so FinTech allows us to ‘offset’ the gains in labor costs.
Better decision making, on more accurate information rather than outdated information, is always a smarter move. Jean Chalopin an entrepreneur stated “Instant updates are a revolution for Banking and Finance … again thanks to FinTech.”
Not only staff, but computers and lighting cost money in the Finance industry the same as it does everywhere else. Faster, better decisions, one assumes, leads to greater profits.
Enter the new age of FinTech, the shiny and constantly evolving way of banking and finance – which to many technophobes might seem like a step beyond their money counting and tracking abilities. Seems more a race than a marathon these days, but you cannot stop it, so you might as well join it, it’s just a further small step on the fast technology roadmap. Our advice? Embrace it!
Disclaimer: The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.