Use and potential of technology in the financial sector
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I totally agree with you @mainuna, that technology is becoming a useful infrastructure that is fast transforming the financial system. No matter how underdeveloped a nation is, even the third war countries, there is a way that technology is driving their different financial system.
Where some nations has implemented cashless policies, technology is strongly forming its backbone as transactions are done through technology.
The Importance Of Blockchain Technology in The Future Of Finance
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Ever since Blockchain is introduced into the financial system, there is a whole lot of transformation that has happened and even more to take place.
Blockchain is furthering and would keep furthering the course of Finance in the future. For instance in the banking industry, the deployment of blockchain has enabled a more secured, inclusive and an open connections or networks which is aiding businesses and transactions at reduced costs. It has also led to the development of new products and services in the banking and finance industry.
The future is bright with the launch of blockchain technology as the adoption is gaining momentum. With blockchain technology, financial instruments would be fully digitalized in near future.
How mobile financial services are transforming the economy of rural people
Mobile financial services has helped to deepen financial inclusion. The rural communities who are financially excluded, are now beginning to to have access to make financial transactions just like what is obtained when you go to the bank for one service or the other. They nolonger travel to the city to make financial transactions.
Financial technology(Fintech) companies are the major driving force that drives the financial services to the rural people. Take for instance in my country, there are Fintech companies that are now licensed to perform financial services like the traditional banks. Open account for the rural people to collect deposits and also enable them make withdrawals. Some of the Fintech companies driving financial services include:
The Opay
Money point
Interswitch
Palm pay
Remita and many others. They help in deepening financial inclusion in the rural areas as they are making banking and financial services closer to the people.
Dear host @mainuna, I say yes to your statement that Cryptocurrency is challenging conventional currencies. How I see its future...
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This statement Made by the host of this contest is right. Cryptocurrency is challenging the traditional currency across the globe. This stems from the fact that, crypto currency is gaining massive adoption from different regions of the world. Crypto assets are now getting digitalized. This is to say that crypto assets are now having digital formats that could be used to exchanged for the traditional currency.
The deployment of blockchain technology is helping to engineer the facilitation of cryptocurrency towards the adoption as an acceptable medium of exchange in line with the traditional currency. This is puting crypto in a more competitive edge to attract investors into the industry.
Some of the features that gives crypto a competitive edge as along side the traditional currency includes its:
Scalability
Trust
Optimum or high performance
Security
Privacy and its
Programmability
Although the future is bright for crypto to thrive, there are lots of challenges hindering it wider adoption. One the challenge is the “knowledge gap.”
The benefits or challenges of using artificial intelligence (AI) in the finance sector
Here in this part, I would be highlighting both the benefits and the challenges of artificial intelligence as they are now part of our lives.
We can not say that artificial intelligence does not have meaningful positive impact in not finances alone. It has improved the overall business operations that has incorporated it into their systems.
Some benefits of AI in the finance section includes:
Finance departments making use of AI are having higher efficiency that helps them to make a quick and informed decision.
The use of AI removes the old systems of operations which are usually stressful and time consuming
The use of AI reduces the costs of business operations
When AI is used in financial establishments, it ensures compliance to regulations or standards for financial operations.
The Challenges Of AI
Using or implementing AI comes with challenges that come along with it. Some of the challenges confronting its usage are as follows:
It is expensive: Not everyone or even organization can afford AI because it costs so much to acquire
Informations stored using AI could be attacked by hackers. This poses a high degree of security risks as hackers can penetrate the system steal or ulter useful information.
AI has created a high dependency on technology and this is rendering the human capacity redundant
Digital banking vs. traditional banking – which will survive in the next decade and why?
It is now obvious that digitization of financial services is on the rise. The traditional banking systems which takes different financial services to customers, is gradually making transition to automated banking system. Of course, we are beginning to see the changes that this transition is making towards the elimination of the traditional banking methods. People at the rural areas now have access to banking services that they never had. The cryptocurrency is on the verge of competing with paper money as it is now becoming acceptable to buy goods and services. The traditional financial instruments are now developed to have a digital format with the same value and and to serve the same purpose.
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Since the digitization of banking services and the integration of other financial services, people could now carry out banking services from the comfort of their. The banking halls that originally used to be flooded with ques, is now having the ease of attending to customers with less efforts. Banks are automating their bookkeeping and accounting systems that used to have a lot of paperworks.
In summary, the points I highlited above shows that the old banking methods are transitioning to a full automated banking system through the adoption of AI. Most of the banking works are now done with machines. So in the next decade, there would be more job cuts in the banking industry as AI would be doing most the available jobs. This would be making the old banking system to fade away and unable to survive in the next decade.
I therefore conclude by stating emphatically that, due to the rapid digitization of both the banking and other financial services, digital banking would be surviving in the next decade than the traditional banking systems.
I invite:
@fortwis09
@protoss20
@bonaventure24