The Way I.T Industry Fueled Economic Expansion of Financing Business
The first debate I participated in while primary school was – Technology has brought more harm than good. As an opposer, I was fully convinced that indeed mankind has suffered more due to technological advancement. However, I met the same debate while in high school and this time I was a happy proposer, again with solid convictions that mankind has benefited from technology. Today am a mature person, done with higher education. I have a solid stand concerning the same subject. Technology has benefited mankind a lot. We will use just one sector to illustrate this assertion, financing. Specifically, we are going to discuss the Way IT Industry has Fueled Economic Expansion of Financing Business. Let us begin…
Which role has Information Technology played in financing business? In general, technology helps businesses enhance their performance as well as their overall effectiveness in the production of goods and services. With such help, businesses can expand not only rapidly but also efficiently. IT has potential influences on management and impacts operations, business sustainability, productivity, and sustainability in various ways. Today, there are numerous tools and apps, for instance, electronic email along with living chat structures which facilitates communication between manager and staff, and help to oversee projects. Basically, business technology is concerned with enhancing information on worksites and with clients.
For many years, banks and other financial institutions have significantly benefited from using the same but very profitable business models. Nevertheless, today technology has diversified everything. For instance, have you heard of crowdfunding? This has become a very attractive financing option for many individuals. What about bitcoin and mobile transactions, these just a few innovations that appear to be dominating the financing business. IT mainly deals with the development of the electronic network as well as the exchange of information. Since there is an exchange of information in all financial transactions, the attractiveness of online finance coincided with developments in IT.
I don’t think there is even a single business out there which as not benefited in any way from IT and digital revolution as a whole. In fact, the first thing new players in the industry try to do is figuring out how to make wise IT recruiting decisions. Without the support of IT, no financing business can survive. The following points illustrate the contribution of information technology in the economic expansion of financing businesses:
Personal finance is streamlined through IT
Financial institutions offer data relating to checking and savings accounts as well as withdrawals in very standardized formats. Clients can download the transactions in the accounts and keep them safely in their home computers or other electronic devices. Additional, personal finance has extra features, including charts and reports, which show their users what consumes their finances as well as their sources of funds.
IT has eased functions
Information technology helps transfer data with ease. Rather than utilizing checks, it handles transactions promptly. Purchases, whether using debit or credit card, can easily be compared with the information on the user’s account. This helps the banks in deciding whether or not to permit a transaction. While bank officials do not work on weekends, financial needs and functions will always be there irrespective of the day and time. IT permits transactions on weekends or even holidays where the bank staff do not work.
Information Technology has improved Financial Reporting
XBRL language is often used in standardizing financial information when public companies make annual reports. Besides, it can be easier for business people to search through records using this format. It can be3 easier to access relevant information they need to analyze and choose the right companies they can invest in.
IT has enabled finance to function appropriately on a global scale. How do you define financial markets? Well, these are well-organized worldwide markets that functions using network computers. With this definition, it is evident that financial markets cannot respond to international developments. Besides, without IT, finance institutions cannot reliably access information as early as their competitors can. For instance, the internet has allowed us to compare different money lending institutions by visiting Loan Advisor.
This is very important for entities that require financially responsible clients. Think of how beneficial this can be to lenders specifically and you will never underestimate the significance of IT. A credit score helps lenders to determine the credit-worthiness of loan applicants. With this information, they can make proper lending decisions. This may involve declining an application or charging a rate that is in line with risk a borrower presents. If a borrower has a good score, he can be approved for loans at very good rates. What is more, there some online tools that borrowers can also use whenever they want to apply for loans. Through the internet, borrowers can compare interest rates offered by different clients to make a wise selection.
Social MediaIT operating on social media through the internet offers money lending institutions relevant information regarding their customers, including prospective ones. Today nearly everyone turns to search engines for information whenever they want information relating to certain brands or services. This is important information that helps financial institutions, especially in improving brand awareness. Moreover, financial instructions can meet and engage young ones who can potentially be their clients in the future.
Sometimes back investigation and fraud detection was a very tiresome process that involved cooperation between man and machine. The machine could simply track the likely fraudulent transactions. The staff was tasked with the responsibility of going through the information to establish the fraudulent activity. Nevertheless, with information technology, the system not only detects but also identify fraud. Besides, the identification is accurate and very fast, reducing responsibilities on the fraud teams.
The Bottom Line
Information Technology has a lot of contributions to the expansion and growth of financing businesses. There are many businesses that financial institutions can get from IT. Advancement in technology will continue to diversify the industry and this will even be more beneficial. I don’t think there is a contemporary institution that does not use IT. Consumers should also use technology to make the best financing decisions.
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