We live in an era where technology influences every aspect of our daily life. Technology has impacted how we approach things, how we get things done, how we collaborate with different people, how things are created, etc. The transformation of financial services due to technology has been noteworthy. People and organizations are constrained to give up on the customary monetary practices and follow agile, imaginative ways to deal with and remain ahead of the competition. Furthermore, it changed the way how we handle our finance for the better. Technology has dramatically influenced our banking, financial security, how we pay and get paid, and more. Here are some disruptive ways, including how we deal with personal finance, technology has advanced:
1. Cash and Cards
We all know that paper money has been around for thousands of years. Debit cards, credit cards, and the Automatic Teller Machine (ATM) gained noticeable popularity after their invention because they restated spending and made transactions as uncomplicated and straightforward as swiping or tapping a card. Debit cards and credit cards can be used everywhere, connecting directly to user bank accounts and instantly making transactions a loan from the card’s issuer to be paid back at a later date. Recently, cards and card machines have microchips in them as an added security measure to avoid fraud.
2. How We Pay and Get Paid
Disruptive financial technologies have opened up so many different avenues for getting paid or making payments. Gone are the days when most people were only paid in cash or a handwritten check. Almost all payments are made via bank transfer. Popular options, like online bank transfers, Paypal, debit cards, credit cards, along with several apps, have made money transfers effortless and easy.
Technology has accelerated the digital shopping trend. Although brick & mortar stores are still popular, e-commerce websites have become gradually more popular over the last few years. Online shopping has also transformed the way we buy electronics, clothes, and regular supplies. An important factor leading to online shopping popularity through large platforms like Amazon, E-bay, Etsy, etc., is the simple and secure multiple payment options. Studies show a that the online market is going to continue to grow.
4. Online Banking
Online banking enables you to do deposits, transfers, withdrawals, and much more. You can quickly check your transactions through banking apps on your phone and do online transactions. The process has become simple, efficient, fast, and available 24 * 7, thus transforming the way we handle our finances. Online banking is relatively easy to understand and user friendly. Frequent access to finances also educates us about our financial habits and improves financial health.
5. Mobile & Personal Finance
Online banking makes it possible to withdraw, deposit, and transfer money using a laptop or a mobile phone. Bank apps downloaded on smartphones makes transactions possible anytime, anywhere. Online banking technology is comprehensive, well refined, user friendly, and can be easily be adapted by all generations. Easy borrowing through online loan apps has also become seamless with just a minimum of effort and a touch of a few buttons.
6. Borderless Payments
Gone are the days when people planned their vacations and had to exchange currency by going to the bank. Nowadays, this is no longer a concern as technology allows us to withdraw money from anywhere using globally accepted credit cards. In this way, payments have become borderless and hassle-free, changing how we handle money while traveling abroad.
Technology has impacted the financial industry, transforming the financial services and banking sectors with the latest fintech solutions and modern trends. Technology has saved time and imparted control over budgeting, saving, spending, and paying bills. With continuous digital innovations and advancements in software programs and online services, managing finances has become convenient and practical.