Categorized | Finance

Impacts of Technology on Finance

Undoubtedly, technology has had an impact on almost all aspects of human life and everything is currently engraved in the great developments in the same. As a result, very sophisticated developments in technology have impacted business transaction hence changing the way we deal with finances. In essence, technology has been a game changer in finance and there are several factors that have contributed to this. This is however not a surprise since the improvement in technology has seen different changes occurring in almost every industry. In some areas, the involvement of technologies in finance can be seen as a disadvantage but in many ways it has been an advantage. Whichever, way one looks at it, technology has definitely impacted finances.

Game changers in finance

Some of the game changing technologies that have had a great impact on finance include electronic trading. Electronic trading has greatly impacted the finance industry by providing easy investment options and facilitating a very fast mode of business transactions. Computers have come in handy in this aspect of business matching buyers with sellers via the internet platform. This has also impacted the developed of other financial transactions such as electronic payment services which have greatly impacted finance in the recent days. The growing technology is definitely transforming the world’s money market. Technology has led to the growth of numerous financial services and [products that have resulted in the growth of business in general.

Electronic banking

Banking is the heart of finance and any change in the way money is stored or sent has a impact on the financial aspect of life. Current developments in the electronic banking system have had visible implications of finance. Electronic banking has become so popular the world over due to the security implications. This is currently the safest mode o banking although cyber security issues have become a looming threat. Due to the current globalization which has ultimately changed the way the world does business, electronic banking has become a very crucial ingredient to global trade. Electronic banking has also made investment and business transaction easier.

Ecommerce

Technology and the internet in particular have made business across the world possible and have reduced the time taken to transact. Ecommerce has radically changed every aspect of finance from banking to sending money, ecommerce has necessitated these changes. Shoppers online can only make transactions and payment online. This is why banking institutions have taken the challenge and initiated online banking services to facilitate ecommerce and in effect online trade has become a major financial industry. In addition to ecommerce, there are other investment opportunities that have come into being due to technology. This includes online investment opportunities such as buying and selling shares among other online investment opportunities.