How Do You Define Financial Services Innovation?
Through the improvement of technology, digital financial innovation is improving as well which enables change in the way things are working in the financial institutions. As the case may be, digital financial innovation is the pavement of a new technology that changes the outlook of things in the financial industry.
Some important changes in the past are automated teller machines, debit and credit cards, scoring through credit, indexed mutual funds and the likes. In order for the old existing problems in the financial industry to be solved, there had been modifications made by technology in the form of devices such as the automated teller machine.
Automated teller machines are examples of modernization in the financial industry which gives the customer a lot of benefit since they can save on their time and money in going to the banks. All you have to do is insert your card in the machine and input your details, since the machine is available all day every day, it has really been economical and the days of going to the bank and wasting time and money for a transaction is gone. In the same way, the use of credit and debit cards has outshine cash, contributing to all the financial changes in such a short time. A lot of individuals now a days already prefer doing their transactions through the use of debit and credit cards since it is safer (since you do not have to bring money with you) and easier than having to go to the bank.
In spite of these, there are still numerous financial services firms who are struggling to keep up with all these changes. The compliance and regulation of these innovative changes in the industry is increasing the burden and work load for a lot of individuals since not all can adopt to the fast rising changes brought about by technology. According to research, individuals prefer to have internal changes with regard to financial services than external which includes innovation in technology.
Being in a situation like this is not good even if it can be understood. Customers will eventually expect you to have these changes in your company and competitors will surely adapt to these innovative changes therefore if you are planning to continue with the traditional way you will be having a very hard time in coping up with the industry.
Notwithstanding the fact that this may mean changes in the opposing area, it might not stop here. There are a lot of people including competitors who are acknowledging these changes and adapting to the way things are being done. Taking into account international payments and peer to peer lending, it is very well-known that small software providers are upset about these old ways in dealing with finances.