As developments transform all work systems around the world, digital transformation will be imperative in the financial sector today. While people used to go to institutions for their banking transactions, today financial transactions on mobile phones can only take a few seconds.
This improvement ensures new products and better results every day. While I continue to make related investments and initiatives in my own life as an individual, I wanted to examine the most widely used technological innovations in the global financial market in recent years.
With all the work that technology has done in the global financial market, a new concept has emerged: financial technology, i.e. H. FinTech. While Fintech briefly refers to the technologies used for financial services, it has created an industry that allows for the emergence of a better and more automated system.
This industry had strengthened about 70 years ago with the advent of credit cards, ATMs and later electronic banking. Today, financial transactions conducted over the Internet via smartphone represent a large market in the world, especially with Silicon Valley in America, London in England and fintech ecosystems in China and India.
Impact of financial technologies on global finance
The experience of digital transformation has also changed the financial habits and approaches of individuals and institutions. As private individuals in particular, we can process our financial transactions more easily with the technical possibilities thanks to smartphones and internet access.
While individuals and institutions are completing this transformational integration faster every day, banks and financial institutions are also entering into this transformation voluntarily or compulsorily. These technologies, offered to global finance, enable more efficient and reliable transactions.
With digital transformation in finance, standardization has increased, creating the opportunity to increase performance and make automated transactions faster. All past and current data could be more easily integrated into the system and better predictions could be made, which gave an advantage, especially when it came to investments. While Fintech offers a better experience and greater satisfaction for both customers and employees, the customer now has the opportunity to receive a more efficient service.
New financial technologies in the world
Financial technologies have enabled the world to create much more practical systems in banking, finance, investing and trading. It further offers transactions such as easy money transfers, payments, loans, investments, marketing, financial planning and insurance.
The basic combinations include the proposed initiatives, financial institutions that want to use or support these initiatives, technology developers, customers and governments that create authority. Financial technology introduced in any country can create a structure that can impact the entire world.
Among the new financial technologies that have become the most important in the world today, one can focus on five main points. Among these elements, the most basic technologies are:
- Artificial intelligence
- Machine learning
- API – application programming interfaces
- Blockchain technology
- It has quantum computing.
When we look at new financial technologies, it is easy to see that customer relationships have become faster and banking, for example, has evolved into a mobile system thanks to artificial intelligence. Thanks to application programming interfaces, mobile applications are developed in the banking, finance or investment sectors. These developed mobile applications also introduce technologies that carry out financial studies in the world of cryptocurrencies or on this network using blockchain technology.
One of the most important points among financial technologies in the world is of course mobile banking and investment technologies, which we can now use on any smartphone. In some countries around the world, cryptocurrency transactions can even be carried out in mobile banking applications, and banking systems are starting to benefit from blockchain technology. Mobile exchanges and cryptocurrency exchanges provide mobile services to people thanks to the blockchain system. Financial technologies are helping to create the structure the world needs now.
What advantages do financial technologies offer in global markets?
This digital transformation in the global financial sector can actually lead to automating everyday tasks and making calculations and archiving operations much easier. Activities such as cyber threats and fraud, which were once common in computer transactions, are now less risky, particularly thanks to technologies such as blockchain. In addition, machine learning allows financial transactions to be carried out more accurately and quickly.
Certain benefits can be achieved through the use of financial technologies in the global financial market. One of the most important points among these advantages is the price advantage. With Fintech initiatives, there is no longer a need for physical structures and products in the financial sector.
It eliminates the cost of physical needs such as receipts or ATMs used in banking. Financial technology offers personalized convenience to both customers and employees. While customer data is archived more easily, the customer feels special and the employee can communicate better with the customer.
While financial technologies provide great convenience, technological developments increasing day by day are making banking and investing easier and faster. So much so that international trade transactions or investments used to take days or even weeks, today you can complete a transaction on the other side of the world in a matter of seconds.
While reducing the burden on employees and institutions, financial technologies also offer more service options and more alternatives to traditional finance. All of these advantages can be used practically at any time on mobile phones, computers or tablets with an Internet connection.
Technological innovations in the Turkish financial sector
Of course, we can also see these technological innovations in our country. Because all banks operating in Turkey are now switching to new generation digital banking and can use financial technologies to make people’s financial lives easier. Financial technologies are used in many places, from shopping to payments, from crediting to debiting and personal financial management. While Internet channels on mobile devices are actively used, the financial sector in Turkey is now gaining an advantage through lower costs.
Today there are many different startups operating in the financial technology space, whether licensed or unlicensed. Today, almost 1000 startups continue their activities in the Turkish FinTech ecosystem, which are officially registered and continue to operate in Turkey. While these startups focus more on financial transactions and payments, some startups continue to work on blockchain (crypto asset).
The e-transformation system in the state is among the innovations officially launched by Financial Innovations in Turkey. In order to realize digital transformation in our country on a par with the world, digital solutions such as E-Ledger and E-Invoice are offered as part of the e-transformation system.
See you in the next post,