Technology and automation have changed the way we live. Often, it has made our lives simpler in ways we are not even aware of. The financial world has experienced some major changes over the last few years, due to the explosion of digital devices made possible by technology and more compact printed circuit boards (PCBs).
Banking
Banking has changed almost beyond recognition from what it was just a few years ago. Back in the old days, you received a paycheck every week or two and then you had to go to the bank and wait in line to deposit your check, receive some cash and perhaps pay some utility bills. Then you went home, wrote paper checks to pay your other bills and put them in envelopes and mailed them to your creditors.
But now because of design efficiency, advances in technology in general and in smaller and more efficient PCBs, in particular, you possess a handheld computer – i.e. a smartphone or a larger laptop or PC. These devices, allow most people to handle their banking online either via computer or smartphone app. Apps let you pay bills, move money around and just check your balance.
In fact, you can do almost everything you previously had to visit your bank’s local branch to do including deposit a physical check. Now, you simply open your banking app, click “deposit check” and take a picture of both sides of the check and bam your check is deposited.
If you need physical cash you can go to any ATM machine and access the money. And due to the use of “networks,” there are thousands of ATM machines available that are “in-network” so you don’t even have to pay a fee.
Underwriting
Banks and insurance companies have automated their underwriting systems. This has made it simpler for banks and insurers to function efficiently and for their customers to get better service. According to Investopedia, “Automated underwriting is a technology-driven underwriting process that provides a computer-generated loan decision. The lending industry is broadly migrating to the use of new technology-driven loan underwriting platforms to improve the processing time for all types of loans. “
Losing the Personal Touch
Automation will mean fewer branches and offices are needed in all areas of the financial world. If you want a loan, you don’t even have to sit and discuss it with your banker. The automated system will decide if you should be loaned the cash or not. Some people are unsure about taking away the personal touch, but it is quicker and more efficient.
Improved Customer Service
Financial institutions are able to provide improved customer service because of the advances in technology. When a question is asked, the customer service team has all the information at their fingertips and is much more likely to be able to solve a customer’s problem.
There are even robotic assistants i.e. “Telebank” that can deal with straightforward questions out of office hours and make sure someone deals with a more complex request as soon as possible.
Linked Accounts
Banks today can actually access your account information from bank to bank. So if you have an account with Bank A, Bank B, Brokerage C and Mortgage Company D you can log into your account at Bank A and see your balances at all the other institutions.
Automated Bill Pay
Paying bills has never been easier. You can schedule your bills to be paid through your online bank account, or have the electric company automatically debit your checking account or charge your credit card. You rarely need to write a physical check anymore.
Fraud Detection
Fraud detection is much easier to spot, and many financial companies have technology in place that blocks a transaction that does not fit the normal pattern for a customer. They then only release the funds when they have received confirmation directly from the client that the transaction is genuine. The amount of online security that financial companies have in place is huge, as they want to protect the data of all their users.
Technology is going to continue to evolve, and as it does, there is no doubt that the financial world will face even more changes, especially concerning automation.
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