Financial Services Technology
Before understanding the next big thing in financial services let us find out what Financial Services involves. The finance solutions rendered by the finance market refers to the term Financial Services. Very often this expression is used to describe the institution which deals with money management like banks, investment banks, stock brokerages, agency services, and credit card companies. Other than providing advice on self-Managed Superannuation, Wealth Creation and Investment strategies, Debt and Risk Management, Mortgages and Lending, and Estate Planning/Wills/Trusts, the financial service expertise may also range across insurance planning, retirement and aged care planning, and inter-generational financial planning.
The Work of Financial Services
The work of financial services is to support you to make the correct financial decision which will let you live a secured life. It incorporates the financial resources needed for the survival of your loved ones and your business in case of retirement, ailment, accidents, and even death. They escort you at every level by providing valuable financial advice right from planning a strong financial base for you, developing and managing and increasing your wealth, planning your retirement lifestyle, to your kid’s higher education. They give peace of mind when you need it most.
These institutions of financial services not only maximize opportunities with proactive tax planning and structuring but endeavors for financial protection for you and your family into the future. They help in creating and managing wealth based on dependable financial planning. Apart from drawing on the knowledge and experience of industry experts, these financial service advisors, take help of technology to maximize their clients’ experience. These valiant investment advisories are always backed by data. Investment is completely based on precise data analysis and past performances. As everyone’s capital is inviolable, these financial organizations protect and ensures that there is no capital erosion. A portfolio review is rather a situation based than time-based and appropriate measures are initiated if any trigger is caught in radar. Through solid tax and real estate planning, these financial service providers help depreciate and defer taxes on your assets and safeguard the dependents’ position. They ensure that there is no loss during the process of transition of wealth to the future generation. To attain the client’s goal for the investment, an extensive study and rectification of the current portfolio, if required, is made. Immense importance is put on clinically and methodically understanding the exclusive needs of each of the clients. Financial services also look into methods to reduce the burden of taxes you pay. The specialists are keen on researching on various tax instruments to boost the post-tax returns. They design a complete financial plan to address the various aspects of finance in a professional capacity. The financial service firm strives to deliver more personalized and smart strategies and advice that helps to increase and manage wealth.
The equipped financial consultant specializing in retirement planning, build up long-term and short-term goals, based on your risk tolerance level, time horizon, and investment knowledge, so that you may achieve the retirement lifestyle you want. A personalized portfolio is created for this purpose. Superannuation is funds that are often used as an employee/individual’s future pension. In this, the employees/individual do a regular payment that in turn is made into the fund. This is considered one of the most effective ways to create your financial asset.
These financial consultants also specialize in providing mortgages and home loans, for home investors and debt consolidation. As home loan requires a lot of paperwork and documentation, the process is often confusing and time-consuming. They assist and guide you in finding the loan to value ratio, debt to income ration, and where and how much amount of loan you must borrow.
A good financial security plan is always backed by a great insurance cover. Risk can be managed by insurance. It is designed for a variety of needs. There are personal insurance options, like Life insurance, health insurance trauma, and disability insurance, Mortgage Income protection insurance, and accident cover insurance that enables you to preserve your present and future income, protect your home for your heirs, increase your retirement income and meet other financial planning requirements.
With a technology setting in every sector, even the financial service sector is not left behind. Almost all the above sectors of financial services have embraced and adopted digitalization in their system, thereby, making financial technology the next big thing that has revolutionized the whole financial services sector.
The financial technology (FinTech) is built to upgrade the financial activities and making the life of the customer simple. A few examples of FinTech in our daily life are Cryptocurrency and Blockchain like Bitcoin and Gemini and various mobile payment apps. AI and machine learning have metamorphosed the financial market sector. Artificial Intelligence (AI) and voice interfaces are producing robust financial solutions; very soon the FinTech products would be an essential part of our life. Recently, in Singapore, OCBC Bank partner with Google to introduce the first AI-Powered voice banking service. This system enables the customers to converse about the various banking services that the particular bank offers. Technology like the InsureTech enables the customers to get all the insurance-related information online. From online policy handling, data protection, and providing tailored insurances, everything can be done online. Advanced technology is been developed that will remind you about your financial goals, payment notices, and also advise you about the stock market investment.
With the change in customer’s taste and the modern trend, the financial service sector has also started to digitalize; however, there is a long way to go, as the digitalization is rather a complex and a long process. To get a truly harmonious and friction-less digital experience the various financial services institutions should coordinate amongst each other to make the transaction process faultless and stable.
With the advent of the innovative financial technologies the customers’ needs and queries would be met digitally, new revenue-generating paths would be created, and new securitization structures and regulatory standards would be established. Revamping the back-office process would be mandatory, and that would result in streamlining the cost towards leveraging smart automation.
Reconstructing of outdated technologies and reanalyzing the organizational structure would be necessitated. Even if the time taken to change would vary from one institution to another, the transformation would be inevitable. Although it seems to create a threat for the organizations proving conventional financial service, it opens up opportunities for them to reinvent themselves and flourish.