Free Essay Example - Finance Technology

In the financial industry, the firm's desire to optimize the revenue from the products they provide. There is a substantial percentage of income to financial institutions derived from the established global frameworks. It then enables these institutions to offer an extensive range of financial products. There is consideration allocated to the most relevant products that offer more promise of profitability. Insurance and retail banking observed to be key sources of revenue for these financial entities. The insurance sector is then further branched into life and general insurance. The above sectors have since established progress in relevance.

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These sectors are a key consideration by Fintech firms globally. The Financial Technology (Fintech) industry projects the desired concepts by financial organizations to adapt related advanced tech to their operational frameworks. It aimed at improving service delivery with the addition of automation of all financial services. It is the utilization of related computer systems with adjustments that allocate the performance of desired financial operations. Fintech frameworks then present financial institutions with technological advancements that would enable them to enhance fluency in offering their services.

It is then crucial for any financial institutions to determine which concept availed by financial technologies is most relevant to their operational frameworks. How effective will they be in alignment with the firm's existing operational structures? Attention then allocated to attaining established technological thresholds by rival financial firms and considering that individual firms have to be up to pace in adapting these technological adjustments to their operational frameworks. There is a target then to maintaining an effectively competitive business environment while still about customer satisfaction of their services.

Internally, employees then have to be conversant with initiating all operations while still ensuring the legitimacy and confidentiality of all initiated operational instances. There being consideration of the target sectors being on retail banking and adapting to the continuously evolving payment technologies to their operational frameworks. Effective implementation of these technological frameworks would relate to the availability of cost-effective operational structures. There is a comparison made concerning the previously existing traditional financial operations. There then considering the occurrence of various risks that present during normal operations of any financial firm. Such risks limit the attainment of individual firm targets, in turn, limiting financial growth to the given organizations. These then certain the need to develop efficient organization structures that tend to mitigate these risky instances, which may hinder arriving at optimum customer satisfaction from services offered.

Future Trends in Financial Technologies

It then observed several concepts that would ensure advancements in the financial industry. Such then promote the continued desire to adapt relevant technological frameworks that would then assure efficiency to services then offered. There are the continued attempts to globalize banking from the extent to which various banks have established their branches. Considering the relevance that banks possess in the financial industry.

From the basic purposes to the involvement of banks with regards to the functions they offer. Banks then assure continued supply to monetary resources at all financial levels as desired. Banks offering financial products like credit with consideration of the levels of interest rates deduced during given periods. The complexity offered by the financial market then tasks banks with establishing concrete access to the emerging markets. Attention then allocated to the financial environment offered by different economies. There are considering economies that do not offer alignment to the market share and profit expectations. There is a need for global banking to regulate organizational growth. There then, with the decision of any financial institution to invest in such a market.

E-banking largely accepted with the increased number of smartphone users. Such a framework enables financial customers to initiate desired transactions using their phones. Advances in mobile technologies then enable banking frameworks to develop compatible mobile applications. Such features enable consumers to manage and perform transactions on their accounts through their mobile phones. The existence of statistics from actualized online transactions initiated portraying the preference by users to utilize these platforms than physical banking. It arises the importance of implementing these e-banking systems to a financial firm's operating structure. Financial industries then need to adapt these frameworks to their operational structures to offer more preference from consumers.

Mobile money is another platform to which customers could initiate desired transactions to the bank. Established mobile operators have developed frameworks that enable the utilization of their networks to send or receive money. Such technology has eased the initiation of desired transactions due to the less ambiguity in actualizing all desired transactions. Financial industries can adopt such frameworks in the easing monetary payments to be made by customers. There then, considering the insurance industry, the buying and renewal of policy contracts could then be actualized regardless of the location of a customer. They are reducing instances of physical paperwork and the need to physically visit firm offices.

Networking also made easier, which is a crucial concept of consideration in assuring fluency to a financial firm's operations. Efficient networking systems assure easy access to relevant data with effective relating of any alterations to the operational frameworks to any organization. Notice then being allocated to the uncertainties in financial markets behavior. There exist realizable changes on the achieved levels of demand and supply specific to the various financial markets that a financial institution desires to invest.

Such collaborating frameworks enable the interdependence between network services providers at locations not locally established. There still assuring the provision of their services to their customers regardless of their geographical locations. Establishments based on providing self-service financial portals that enable personal access to desired services. It enables customers to monitor all activities initiated within their accounts with the establishment of online status.

Recommendations

Institutions in the financial industry must allocate relevant resources in adapting Fintech frameworks into their operational frameworks. For the effective adaptation of related technological frameworks, it is then important to understand the various technological concepts that would be equally relevant in addition to Fintech revolutions observed. A Blockchain is a technological approach that provides an added security concept to the data presented to such frameworks. It observed to eliminate the reconciliation of the third-party theory. The concepts relayed from the Blockchain relay the idea of initializing payments regardless of the currency from a decentralized network. It has since adapted to Fintech frameworks via the digitalization of associated modes of transactions.

The concept of big data presented with the largely available amounts of the financial information presented. With the desire to adapt technological frameworks, crucial attention then allocated to how all customer details presented to a firm's systems then managed. It is then considering the relevance to derive from these data. Consideration then on the confidentiality levels that such data demands. Security concerns were a priority on limiting individuals with authorized access to the given data. There are levels of privacy that each account then presented with at all interactions. There then assuring the eligibility of all transactions initiated as to the specificity of each user. There being consideration that individual identity to every account needed with the location of concrete PINs as per the precision of every account owner.

Summary

Understanding Financial Technology (Fintech) enables firms in the financial industry to establish the advantages that technology could offer in this line of business. It would then be more manageable for every financial institution to analyze their operational frameworks and establish relevant technologies that would align with their organizational cultures. It is then vital to be of knowledge of technological trends that are relevant to improving financial infrastructure utilized at these firms. Understanding of these concepts would enable organizations to acquire relevant technologies for their organizational frameworks. Knowledge of the various technological approaches would then enable firms to keep up with rival customers in offering better financial products and services to their customers. The target is to create a better operational reputation in the financial market. Such would create a sense of preference and trust in the efficiency in initiating all financial operations by the given firm.