How technology is changing the financial side of business

Cloud computing is one way How technology is changing the financial side of business
Photo by CC user Florian Hirzinger

Technology has massively changed some industries in recent years, transforming the way that firms work, and forcing operators to create new business models. Examples of industries that have been completely transformed by technology include:

  • The travel industry.
  • Video rental businesses.
  • The music industry.
  • Newspapers.
  • Bookstores.

Even in sectors and industries that haven’t been largely changed, thanks to the development of technology, there have been big developments. Technology is supposed to make life easier, allow work to be carried out faster, and to remove issues such as human error or disagreements between different parties.

The financial sector is one area that has been widely affected by the development of technology. Given the high stakes involved with the financial sector and the importance of making quick decisions and taking fast action, it is perfectly understandable that this is the case. Minutes can sometimes mean millions, depending on the size and scale of a deal, so anything that allows individuals or businesses to act quickly and efficiently should be welcomed by people with an interest in the sector.

Technology saves space, time, and ultimately money

Cloud technology is one of the most common ways for firms to store data, and this has had a huge impact on many companies. It has reduced the amount of space that businesses need to allocate to storage, which has freed up considerable sums of money. However, the emergence of cloud technology has created new issues with respect to security, requiring companies to invest in secure servers and make sure that their data cannot be reached, obtained, or corrupted.

Another area that has had large ramifications in the financial sector is how people spend money. It used to be that cash was king, but nowadays, consumers are utilizing contactless payment systems, and major firms can transfer money to departments, suppliers, and partners in the blink of an eye. Making transactions easier to carry out and quicker to complete encourages business to be undertaken, so it is easy to see why firms and the financial sector as a whole want to make it as easy as possible for individuals and companies to spend money.

Technological progress requires new security measures

There is a need to spend more money on security, on education with respect to how to use these new systems, and to promote confidence in new technology. In general, if consumers don’t buy into new technology, it can halt progress or limit the way that companies can move forward. New technology can make life easier for people and businesses, but there is a need for there to be agreement about how best to present and utilize the technology to make sure that people move over to these new services and offerings.

A positive outcome for businesses with the development of software and digital services is that firms can get help they need in areas where they don’t have skills or expertise. With the number of small companies and start-ups rising all the time, it is only natural that there will be many firms who don’t have the full range of expertise that a new company needs. Rather than employing a professional on a full-time basis, or even outsourcing work, technology enables small firms to get the help they need to ensure that they meet administrative and legal requirements.

There is peace of mind to be gained from hiring an accountant, but online accounting software allows new businesses to record their incomings and outgoings correctly, quickly, and without great cost. This is a great boon because it provides businesses with confidence and the expertise they need without adding expenditure.

Even simple digital products such as templates ensure that firms engage and communicate properly with other firms. Choosing effective digital business services such as a receipt template helps companies to keep track of their activities and ensure that they receive payment in full and on time. Creating invoices may sound like a simple process, but to a new firm that hasn’t engaged in this activity before, it can be a daunting and challenging task. The emergence of digital products and services has made it easier for firms to carry out the individual components of modern-day business without needing relevant skills or expertise.

The rate of change of technology within the financial industry is making sure that this sector evolves at a tremendous rate, changing long-stated practices and agreements. These developments create more opportunities and help to provide all companies – large and small – with opportunities and benefits that they previously couldn’t access. With key figures in the sector keen to see this evolution continue, technology will remain central to the future of the financial industry.