Our world is ever-changing, and the finance industry can’t afford to stand still any longer. Whether we are ready or not, the digital age of finance is here.
There are many benefits to financial digitalisation for both financial organisations and the customers they serve. But, with so much change, it can be hard to figure out how this all affects you.
That’s where we come in! The Aventur experts are back with the lowdown on all things digital finance, and what it means for you and your finances.
Using some form of payment dates way back to the dawn of civilisation, when grain, livestock, and other commodities were traded for other items and/or services. Standardised units of payment, loans, credit, and interest all came into play as early as 3000BC. The first public company, the United East India Company, came in 1602, and the stock exchange as we know it today was born.
When asked to rank key drivers of organisational success back in 2004, senior leaders ranked technology as the 6th most important. In 2020, they ranked it 1st. This is just one example of the ever-increasing value of technology in improving products, services, productivity, and efficiency across all sectors.
Despite being notorious for existing slightly behind the curve when it comes to industry progression, the financial sector is finally reaching its digital age. New financial technology (FinTech) advancements are piling pressure on the financial sector by offering rapid processes, remote customer services, lower costs, and faster payments. Meanwhile, digital banks such as Starling, Monzo, and Revolut are fast gaining on the top traditional banks.
Over in the investment banking sector, the introduction of artificial intelligence means you no longer have to follow the stock market religiously to make informed decisions on your investments. Plus, small-scale investment opportunities, stock market apps, and investing bots are making it easier and easier for the average Joe to start investing with relatively low risk.
The digital transformation of the financial services industry has a number of key benefits to both financial organisations and you (the customers). To keep it snappy, we’ve summarised them for you:
|Benefits For Organisations||Benefits For Customers|
|Automatically gathered, reliable data supports the development of customised products and services.||Customised products and services provide an offering that better suits the customers needs.|
|Automated and/or digitalised customer service increases efficiency and reduces costs.||Better, faster customer service support.|
|Greater productivity, efficiency, and thus profitability in all areas of the business.||Instant and automated notifications ensure customers are financially aware and can help them avoid unexpected charges.|
|Instant and automated notifications save time on auditing and customer services.|
The financial sector is rapidly digitalising (at last!). But what does this mean for you and your finances?
For your banking, it means you can access your money 24/7 and can be constantly aware of all ingoings and outgoings, right down to the last penny of each transaction. You can view these transactions digitally, and discuss them with an advisor almost immediately should you wish to do so. You can also connect separate accounts and track your spending across these accounts in a format that is clearly labeled and easy to understand.
For your credit needs, you can easily find out what your credit application would look like to a potential lender. You can boost your credit score instantly, and preview the likelihood of an application being accepted (as well as any reasons it might not) before you have even applied for it. You can also work out, based on existing savings and income, exactly what kind of credit repayments you can afford, and/or the kind of mortgage or loan you might be eligible for.
For your investments, it means that you can gain greater returns from fewer initial investments and in a shorter time frame. It means you can access detailed information and analysis to help inform your decisions, all whilst tracking your existing investments to keep them as profitable as possible. Whether you’re looking to invest small pots of money in several different areas, or a large sum, the advice you receive can be tailored entirely to your unique financial situation.
At Aventur, our experts work hard to combine years of experience in the financial sector with the latest financial technology to create a winning combination that keeps you and your money safe. We don’t believe in a ‘one-size-fits-all’ product, so we take the time to get to know you, your money, and your financial goals so we can provide the right independent financial advice to help you reach those goals.
Got a question, or not sure where to start your financial journey? Get in touch.
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