Let’s face it. Just about every industry that is worth any good amount of money is connected to technology. The old way of doing a lot of simple tasks has greatly improved because it is not as labor intensive due to advancements in technology.
I have included some of the major advancements in finance that have made a huge impact with the help of technology and a lot of smart minds trying to make an impact. Even though I have included some major advancements, this post does not even scratch the surface of all of the innovation that has taken place over the last decade.
It would be tough to cover all of the bases in finance because there are so many fields from corporate finance to personal financial planning!
Technology in Loans
In case you did not know, loans are a major part of finance. Loans make it possible for a business to access money that they normally would not be able to. All of the biggest companies in the world have loans, because they are usually needed to gain access to more capital.
Things like a loan management software or a loan decision making software have come into popularity, and it seems like they are both making a massive impact on the finance world. Since the loan market is massive and very profitable for some parties, you can be sure that there will be lots of innovation in the future.
Little innovations like a software that can make a decision on a loan is timesaving and could lead to much better decisions in the future.
Technology in Risk Management
The term big data refers to data that the human eye might not be able to process, but with the help of technology we are starting to learn that big data has a lot of answers for us. Big data plays a role in the finance field because it can be used to weigh out an investment decision or a credit decision for a potential borrower.
Before technology, a credit decision was largely based on a few numbers, but now big data is helping some decisions be made from a more analytical approach. The process is not totally perfected at this moment, but it seems like credit decisions are moving that way.
Also, it could prove to be a much more effective way to calculated risk and make the whole finance industry a better place. A lot of experts think that analyzing big data is going to unlock a whole new wave of ways that we make decisions.
Even though those two sections are a huge accomplishment for finance, it does not look like it is even close to reaching its potential. It will be interesting to see how we can continue to unlock the secrets of big data and how much technology with disrupt the finance industry.
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