How Technology is Changing Finance
Technology is making big changes to the world of finance. Traditionally a conservative industry, finance has been transformed by the arrival of things like artificial intelligence and mobile applications. Advances in technology have made financial products more accessible, faster and convenient than ever before.
Technology has made it easier than ever for previously unbanked people to access financial services and products. For example, people who live in rural areas and in the developing world have been able to access financial services for the first time ever thanks to the rise of mobile apps. Not having to go to a brick-and-mortar institution or own a device like a laptop or desktop has vastly improved access.
But everyone has benefited from the collaborations between technology and finance. The rise of technology is making services less expensive, for example. The use of artificial intelligence in financial advising has dropped the costs while still providing good results for end users. FutureAdvisor, Nutmeg and Wealthfront have made it easy for people to manage their own wealth, rather than outsourcing that function to high-earning financial professionals.
Another part of the financial world that’s become more accessible for the average consumer is the stock market. Apps like Robinhood make it easy to trade stocks without fees. They’re less expensive than a traditional brokerage, and their intuitive platforms are easy to use. Apps for loan products, too, have taken off.
Prosper, Lending Club, and similar services have made it easier than ever before for people to access loan products. Rather than applying to a bank and waiting for a decision, they’re able to find peer-to-peer loans. Often, the requirements and payment terms for these are preferable to traditional loan products. LendUp is another example. This loan product is similar to a payday loan, but with much better terms. Users able to rebuild their credit scores, while saving some money compared to payday loan interest rates.
Finally, technology is working with traditional financial companies and helping them stay relevant. For example, ApplePay wasn’t built from the ground up. They work with credit card giants Visa and Mastercard to access payment networks. This demonstrates that tech isn’t trying to disrupt finance in every case. They’re just refining the system and making it more efficient.
Published by Arka Khorchidian
Arka Khorchidian is a student studying technology in Geneva, Switzerland. Deeply fascinated by how technology works, in addition to the adaptation of devices and computer systems, Arka Khorchidian hopes to one day pursue a career as an electrical engineer. Having been a student of the International Baccalaureate program, Khorchidian was fortunate to receive a higher level of education, which he plans to leverage in his collegiate studies. Though he is a firm believer in exploring opportunities and keeping doors open to possibility, Arka Khorchidian is rather firm in his pursuit of a technological career. Check out Arka Khorchidian’s blog for a deeper dive into his passion for technology. View more posts
Originally published at http://arkakhorchidian.wordpress.com on January 10, 2022.