The financial department within an organization or any given entity is one of the most delicate sectors that help ensure high levels of productivity within any profitable and non-profit firm. Most firms have taken measures that help ensure high levels of security are maintained to avoid unnecessary losses. FinTech is one of the most productive innovations within the financial sector that have enabled the maintenance of high-level security in most financial institutions worldwide (Gomber et al., 2018). The emerging technologies have also helped in enhancing quality service delivery to the clients of various institutions.
FinTech innovations are among the world’s leading innovators to develop very effective technologies that have positively impacted the financial sectors globally. Some of the most productive technologies that various financial organizations can adopt to enhance their productivity in the market include mobile banking, artificial intelligence, biometric technologies, big data, blockchains, and open banking APIs. The technologies have efficiently penetrated the market and industry due to the qualitative productivity they have brought about into the operations of various firms in the financial sector, such as the banking industry (Gomber et al., 2018). The main aim of adopting emerging technologies in the banking sector is to ensure customer satisfaction.
Some of the main accelerators for the adoption of emerging financial technologies for security are the rapidly increasing numbers of clients depending on various institutions for satisfactory services. Most banks and other financial institutions have recorded increased numbers of customers whose wants cannot be fully satisfied by the available human resources, which leads to most organizations acquiring various technologies suitable for customer satisfaction. One of the new technological innovations that have had a positive impact on the banking sector includes blockchain.
A blockchain is an innovation that enables any financial organization or system to record big amounts of data, making it impossible for an individual to hack into the system and change any information in the records. Technically, a blockchain can be considered an online ledger for firms and banks dealing with big and confidential data. Blockchain technologies have also brought about cryptocurrencies, which have made safer and faster transactions within online platforms.
Blockchain technologies have helped in maintaining trustworthy relationships between firms and their clients. Most financial institutions globally have embraced internet banking which enables their clients to perform different tasks online. Blockchain enhances secure transactions that are conducted within online platforms. Blockchain has greatly helped in filling in the loopholes that exposed them to risky situations.
The major element required for any financial institution in the banking sector to successfully adopt blockchain technology is providing proper education to the employees and customers about the innovation. Proper education on blockchain technology will enable both financial institutions and their customers to make very productive choices during their financial operations (Paul & Sadath, 2021). Some of the variables required to ensure that all the emerging technologies are fruitful for an organization are the robustness of the technology, understanding of how the new technology operates, and faster internet connectivity. The other necessary element for inserting the innovation is revising the equipment of the firm and the necessary tools to make the system function properly.
Some of the probable changes that will come up as a result of adopting blockchain and other various technologies within the banking sector are reduced over-dependence on human resources, reduced financial costs on security and maintenance, faster speed of transactions, and better personal data control. Most operations will be done through automated machines and applications, which are faster and safer as compared to human resources (Paul & Sadath, 2021). Implementing blockchain is an innovative action leading to the rapid development of the company, its reliability, and safe data usage.
References
Gomber, P., Kauffman, R. J., Parker, C., & Weber, B. W. (2018). On the Fintech revolution: Interpreting the forces of innovation, disruption, and transformation in financial services. Journal of Management Information Systems, 35(1), 220–265. Web.
Paul, L. R., &Sadath, L. (2021). A systematic analysis on FinTech and its applications. 2021 International Conference on Innovative Practices in Technology and Management (ICIPTM). Web.